These days, technology is completely intertwined with nearly every facet of modern life. It’s sitting in your pocket, built into your car, and in every corner of your home. Traditional in-person activities like shopping and banking can now be done online with a few simple clicks. The life insurance industry is making significant strides to offer the same level of modern convenience with technology.
So how can technology bridge some of the gaps that exist between life insurance providers and potential customers? According to LIMRA data, 48% of Americans (approximately 60 million households) say that they know they need more life insurance. If that’s the case, what’s stopping them from buying?
The answer is likely a combination of several common misconceptions. Many people think life insurance is too expensive, the process too complicated, or the product unnecessary for where they’re at in life. By offering the latest in customer-friendly technology, you can help dispel these notions with resources like free online quotes, where customers can better understand their pricing options. Perhaps most importantly, you can make the process less daunting to customers and better aligned with the ease of use that they expect today. Ethos Technologies Inc. has identified the following three ways technology can help support your business:
As the average American becomes more and more accustomed to life online, their preferences have changed as well. Consumers prioritize the convenience and speed that online shopping brings, and having the ability to evaluate and compare various products online is a huge asset for the consumer.
These preferences have translated to the world of life insurance as well—the amount of Americans who would prefer to buy life insurance online rose by 38% over the past 4 years, whereas the amount who would prefer to buy in-person fell by 24%. In a world where you can get so many things online, customers are increasingly (and understandably) expecting life insurance to be one of them.
So how can you meet them where their expectations lie? By offering them a fast, fully online solution. Customers can get a free online quote with Ethos by answering a few simple questions, and should they decide to continue the process, the application process is online, non-binding, and can be completed in as little as 10 minutes.
The process is entirely online for agents as well. Ethos agents can use the 100% digital platform to quickly provide quotes for different coverage amounts and term lengths, track customers’ policies, and automatically receive their compensation and incentives each month. You don’t have to meet clients face-to-face (especially during COVID) to provide them the level of service they’ve come to expect in the modern age.
According to LIMRA’s Life Conference Report, 19 million Americans get “stuck” in the life insurance process—meaning that they start the process of applying for life insurance but don’t end up finishing. Too often, a complicated and lengthy application process is the primary culprit.
So, how can getting stuck in the life insurance process become a thing of the past? A more seamless application process can help. With an increasing reliance on online applications instead of confusing paperwork, there are fewer obstacles that stand in the way of clients getting covered.
Ethos offers a fast, straightforward application process that is 100% online. The application is virtually free of commitments—it’s non-binding, free, and has no effect on the applicants credit score. A process that traditionally took weeks can now be done in a matter of minutes. Applicants will be asked some health questions, but don’t have to take a medical exam.
Another way to acclimate to customer expectations and prevent them from getting stuck along the way is by making the underwriting process easier. Half of Americans would be more likely to buy life insurance if they could have simplified underwriting. As technology gets more advanced, insurtech companies can rely increasingly on smarter risk assessment algorithms instead of cumbersome underwriting, helping to dispel the perception that the life insurance application process is lengthy and daunting.
Ethos is an example of a life insurance provider moving to streamline the underwriting process. Using proprietary technology and predictive modeling, customers are able to choose from a wide range of flexible, affordable coverage options. This allows you to design a policy that gives your customers the financial support they want at a price that works for them.
This technology also speeds the process up and applicants are able to receive a decision faster. No medical exams are required (there are some health questions on the application) and most applicants receive a decision instantly or within a week. If approved, customers can activate their coverage instantly, dramatically reducing some of the waiting time typically associated with the application process.
So how can you make sure you’re staying at the forefront of the technological advances in the life insurance industry? Meet the evolving needs of the modern consumer by offering them a life insurance solution for the modern age, like Ethos. By teaming up with Ethos, you can sell a product that makes it easy to get fast, competitively priced coverage. Signing up with Ethos is free—learn more about working with Ethos here.
Statistics pulled from LIMRA’s 2020 Barometer Study and Life Conference Report.