An Ominous Signal (for some): Is Life Insurance a Thing of the Past?
Recent news coverage and market reports seem to suggest that life insurance may soon become a thing of the past; and worldwide insurance companies are struggling to stop their frustrated customers from surrendering their policies! Some of the major players have either downsized by selling large chunks of their businesses or they have simply disappeared into oblivion. If one analyzes the political and economic upheaval that has persistently struck over the last decade, you may find ample reasons behind the gradual erosion of consumer faith in long-term insurance policies.
In an era of uncertainties where human life has no value, how can life insurance have any value?
The Obvious Causes
A close analysis of the life insurance industry trends and patterns reveal some apparent truths that cannot be ignored or removed such as:
The Global Political Crisis & Economic Meltdown
The global political unrest and economic meltdown have greatly unsettled the vast middle-class population with disposable income. Compared to say, 25 years ago, the recent decade has seen consumers growing increasingly techno-savvy and money-conscious, so they are not about to be fooled by some insurance agent or smooth talking salesperson! In today’s world, life is full of uncertainties; consumers are gradually losing faith in governments, governance, and administration. This is not surprising. Look at the nation’s debt and so many politicians unwilling to confront this monstrosity!
Open Market & Open Access to Information
With the open market and the Internet, consumers have been empowered with a wide choice of products and services but all these choices have not make life any more simple (not in every way for sure). These consumers know how to take quotes from worldwide life insurance providers and compare the numbers. Unfortunately, neither a long time frame nor the most premium figures are appealing enough to entice the majority of consumers. Modern consumers are more interested in policies which are short-term, guarantee returns, and provide an opportunity for reinvestment.
Too Many Competing Products & Services
Traditionally, one salient life insurance product was seen as the ultimate savior for a family in hard times or times of uncertainty. In the contemporary world, there are so many types of insurance products with so many options available, that the average buyer or eligible consumer is unlikely to make a purchase because of lack of confidence in the system and because they are confused. Moreover, the emergence of a plenitude of medium-sized insurance companies has hit the business of the larger players pretty hard.
The Disappearance of the Insurance Agent
A few decades ago, if even that (perhaps only one to two), the insurance agent was the primary motivator behind every successful insurance sale. Now, prospective consumers simply search online to instantly collect insurance quotes from national providers or direct carriers within a few minutes. The role of the insurance agent is not as vital and there are less of them now.
A Brave New World
If you are looking at market analysis and recent industry trends, then yes, the future of the life insurance business appears gloomy which does not bother too many people anyhow. The entire aspect, or much of it, was a scam or waste of money anyhow. If you properly save your money, you do not need life insurance. Furthermore, techno-savvy customers will be reaching out to short or mid-term investment portfolios to ensure guaranteed returns and opportunities for reinvesting. Until company and bureaucratic leaders regain that trust, certainly the latter, this trend will continue.