Another Survey Shows Gap in Life Insurance Coverage

Society recognizes the value of life insurance.  We provide tax benefits to encourage families to secure their futures with the product.  Yet there is another survey out showing that Americans do not have enough.

 Covering the survey, LifeHealthPro notes one way to help:

If the gap is to be closed, this field force of producers needs to be expanded. Life insurers can help by beefing up recruiting and sales training initiatives for new agents and brokers. Certainly, such programs are expensive. But a short-term hit to the carriers’ bottom line now will reap rewards in the long run.

That is certainly true.  Just as important, regulators need to make sure those trying to enter the profession have a fair pathway.   Data from some states continues to show that those most likely to help families who need insurance are the least likely to make it into the profession.

Diversity Among Financial Professionals

InsuranceNews.net covers a new report suggesting that life insurance companies are making it a priority to diversify their sales force.

Key quote:

With companies hiring again in earnest, it’s a good time for life and annuity carriers to reassess the composition of their distribution force. Industry analysts often point out that if the industry is serious about selling more protection and retirement products, then life and annuity producers need to be from the communities they aspire to sell to.

In order to ensure every community has access to the financial tools necessary to find financial security, it is critical that the industry make such a recruitment a priority. Research from CFS and LIMRA shows that contact with a professional is one of the key reasons a family chooses to protect their wealth.

Just as it is important that the financial industry recruit from all communities, it is critical that regulators ensure entry into the profession is open to all. Some key reports, such as this one from Florida, suggest there is work to do.