Is the banking industry poised to take over life insurance? According to a new study by LIMRA, that could be the case as 13 to 46-year-olds are more likely to seek life insurance policies through their banks.
The study found that Generation X (ages 33 to 46) and Generation Y (ages 13 to 32) are more receptive to buying life insurance from their bank than buyers of the boomer and silent generations. Only one-third of boomers and members of the silent generation say they would seek life insurance through their banks.
In addition, 7 in 10 consumers that indicated they would consider purchasing life insurance from a bank are interested in simple products, while only one third of high-net-worth consumers would consider purchasing a more complex life insurance product from their respective bank.
In fact, a periodic LIMRA study discovered that awareness of bank-sold life insurance has reach 54 percent.
“Growing up in a post-Graham-Leach-Bliley environment, the younger generations are open to receiving a broad spectrum of products and services from their bank,” says Patrick Leary, assistant vice president, LIMRA distribution research to LifeHealthPro.com. “We also know these consumers are more likely to need life insurance than older generations. In addition, many of these younger consumers have no existing relationship with a life insurance agent or financial advisor…”
As part of the National Agents Alliance team, it’s important that, as a life insurance agent outside the banking industry, you target the younger generations and begin forming relationships with them. It may pay off in the future when they turn to you for their life insurance needs over their bank.