Fraternity-Testvériség, 2010 (88. évfolyam, 1-4. szám)
2010-04-01 / 2. szám
Summer 2010 What better gift for children and grandchildren ... Heritage, Fraternity £t Security HRFA Juvenile Insurance and Guaranteed Annuity Gift Call the Home Office at 888 KOSSUTH • The premium for a typical policy is about $1,200. • Women who earn less than $20,000 purchase larger policies than their male counterparts, but as the level of insured income increases, the ratio of coverage between women and men dramatically increases. Women earning more than $100,000 purchase just over half of the policies purchased by males in the same income group. • 55% of female buyers bought term insurance in 2003. • Slightly more adult females than males purchased a single premium policy. What we don’t know, however, is who in each household decides that the family does not have enough insurance and who insists on future purchases to insure replacement income. This is of major concern to the insurance industry. LIMRA released a report called “Trillion Dollar Baby, the Sales Potential of the Underinsured Life Market.” The study showed that there is a wide gap between the amount of insurance that households currently own and the amount they feel they need for adequate protection if a primary wage earner were to die. The 44% of households who feel they do not have enough life insurance say they need enough to replace 6 years of income, but they currently own enough to replace only 3 years. They need to buy on average an additional $200,000 of insurance to meet their goal. According to the report, 48 million households say they don’t have enough life insurance and these are the reasons listed for not purchasing more: • “We can’t afford it.” • “We can’t decide how much is needed.” • “We haven’t gotten around to buying it.” • “We worry that we will make the wrong decision.” • “We haven’t been approached or asked by anyone.” • “We put off buying it because we just don’t want to think about dying.” These are the concerns that must be addressed by all fraternal societies. They need to examine the demographic profiles of their older purchasers and what they buy. As the population ages, the median age of life insurance buyers will continue to increase. Fraternal insurance companies that focus on term sales should watch this trend as the popularity of term policies decreases dramatically among older age groups. Also, fraternal agents will have to approach men and women in each household based on the gender differences that are already apparent. But even more importantly, both men and women are already aware of their need for more insurance than they currently own, and that is the fraternal societies’ key to future success in increasing membership. Sources For full LIMRA report, The 2003 Life Buyer Study: United States, A Market Study of New Insureds and the Individual Life Insurance Purchased, by Kenneth N. Isenberg and Karen L. Terry Trillion Dollar Baby, the Sales Potential of the Underinsured Life Market, contact LIMRA, 300 Day Hill Road, Windsor, Conn. 06095-4761. Merrill Lynch Investment Managers Survey was reported in Advisor Today, (NAIFA), Aug., 2005, p. 34.
