Four Steps to Improving the Life Insurance Buying Process

During a recent flight home from an industry event, I sat in my seat re-reading my previous “State of the Industry” blogs. A common theme resonated throughout each of them – Simplified Process.  I am passionate about a simplified process because it is what our applicants tell us they want.

What Should A Simplified Process Communicate?
It should symbolize a process that is easier, faster and simpler than an applicant probably imagines.  Most people assume buying life insurance is complicated and invasive when in fact, it isn’t. It’s time the industry improves applicant education on how simple this process is – from the time of submitting an application to the day the policy is issued. It’s time we start stepping away from the old, traditional way of the life insurance application process and start becoming innovators.

The Internet’s Role
The internet has changed how people interact, the service models they expect and the speed in which they expect service.  At the same time, the internet has enabled more transparency, awareness and consumers have access to more information than ever.  The internet gives us the ability to more simply and easily communicate processes.  We need to leverage the power of the internet and get our message out.

Regaining the Applicant’s Trust
We have to clearly communicate what to expect during the life insurance buying process, improve transparency, and educate applicants on how simple, easy and affordable life insurance really is.  We live in a consumer driven-economy and as consumers we want cheaper pricing, faster service and a simpler process.  If we can achieve these four key deliverables we can regain trust.

4 Steps

  • We must shift all our focus on the Applicant
  • We need to offer a “Simplified Process,” a more affordable option than Simplified Issue
  • We need to embrace technology; our applicants already have
  • We need to make owning life insurance something as necessary as owning a car or home insurance

There has been a disproportionate amount of time and energy our industry has put into “simplified issue” versus a simplified process.  Most people are not “Professional Insurance Buyers.” We are all on our own.  We believe there is room to educate applicants, promote transparency and simplify the process while providing better and more specific underwriting and ultimately improved mortality.  We are moving toward a simplified process in which life insurance will cost consumers less, provide an improved mortality experience for actuaries and insurance companies, enhance and individualize the underwriting process, provide more options and control to the consumer and get policies in the books faster with commissions paid sooner.

It will be an exciting time for our industry when we can collectively look at American families and see more children, spouses, businesses and individuals protected.