Employees choosing workplace life insurance are often single and tend to select an insurance option they are presented with at work, abstaining from shopping around for other options. A majority (62%) consider only one offer.
About one-quarter (25%) of workplace life insurance buyers have never had a general discussion with someone who represents the industry, explains Ron Neyer, assistant research director, LIMRA Distribution Research. “Younger, less experience buyers typically do not have financial advisers, so they tend to look to different information sources compared to older customers,” he says. “Many rely on their employers’ expertise for carrier selection.”
The top factors driving workplace customers to purchase life insurance are to provide for family living expenses and cover burial expenses. Additionally, they place more emphasis on income replacement compared to customers who use other distribution channels.
Customers are adapting to the application of electronic enrollment at the work site, which has increased over the past 10 years. More than one-third (36%) apply online or via e-mail, more than any other application method. Today, fewer employers grant direct, in-person access to their employees.
“There are plenty of opportunities at the workplace for insurance companies to connect with today’s younger shoppers,” says Neyer. “Most workplace life sales are simply triggered by an offer to purchase an employer-sponsored plan.”