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First Time Life Insurance Buyers
 

First Time Life Insurance Buyers

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An analysis of first time life insurance buyers, who are they, what are they looking for and how do we get them to buy from us?

An analysis of first time life insurance buyers, who are they, what are they looking for and how do we get them to buy from us?

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  • First Time Life Insurance Buyers (FTIBs) were identified as a high potential customer segment representing strong future value and a good strategic fit for DSO The Consumer Segment team has been charged with developing an innovative marketing plan to successfully capture this segment
  • Our secondary research provided us with an estimate of the market size 114,000,000 total US Households 8% buy life insurance annually (9M) 46% of life insurance buyers are FTIBS (4.14M) Buyers and non-buyers and Trillion Dollar Baby
  • We conducted primary market research (both quantitative and qualitative) in order to develop a holistic view of our target and spur growth through customer-driven insights. Objectives: 1. Validate DSO’s FTIBs target segment hypothesis against real-life insurance prospects 2. Understand life-event triggers, motivations, selection criteria, shopping process, influencers, pricing threshold, category perceptions, existing brand affinity, and other factors that affect purchase 3. Identify products, services, marketing channels, messages and tactics that are most compelling to FTIBs
  • Buyers have term life insurance While more than 30% (can’t recall+general) couldn’t identify the specific type of policy they had. Prospects don’t know which type of life policy they would buy.
  • Highly motivated to buy life insurance Plan to buy in next 6-12 months Attractive target segment Younger than existing Stonebridge customers – longer potential customer lifespan Likely in better health & better educated Higher HHI Higher coverage value and premium levels Here’s count of Term Policies currently in force in Ingenium broken down by coverage amounts. Please let me know if you need additional information. (Total Term Life policies in Force: 116,467     Under 100,000 115,823 >100,000 and 300,000 0) Count Of Active PBLIC Policies Coverage Amount 61896 $100,000 to $299,999 31 $300,000 to $499,999 48 $500,000+ 485959 0-$99,999
  • Arrival of a child About a fourth of all respondents decided to buy life insurance because they “simply realized that they needed it” but data showed that a majority of these respondents have children 0-5 Arrival of a child was the leading life event that triggered life insurance purchase They become “Planners and Protectors” Highly motivated to buy in the next 6-12 months triggered by parenthood Want to “prepare for the unexpected”, “allow family to maintain std. of living”, “have peace of mind” They envision future milestones (e.g. graduations, weddings, buying a home) They expect changes in their lives They are not motivated by aging, getting sick or dying “ Now that I have a child and another child coming, and we’re talking about college already and their weddings, I don’t want my wife to ever have to tell them that we can’t afford this because Daddy didn’t plan well. I’m determined that they will have they need. I’ve seen people who had passed and had life insurance. To me, their family’s life was so much easier. The house was paid off and the burial. It wasn’t a struggle.” - Ryan, 28, father of a young child
  • About a fourth of all respondents decided to buy life insurance because they “simply realized that they needed it”. Data showed that a majority of these respondents had children 0-5 - The implication is that while this subset did not report the arrival of their child as directly related to their insurance purchase, it is still considered a factor. Arrival of a child was the leading life event that triggered life insurance purchase Parenthood, far outpaced other life events like engagement, marriage, buying a home “ When you have a family, you want them to be comfortable even if you’re not around. Actually especially if you are not around, you don’t want them to suffer any more than they had to.” Tom, M, 34, father of young child “ If my husband who works were to die, who’s going to keep us in the house, who’s going to cover the education? You'll need money to buy you time to figure out what to do before you go on with the rest of your life.” Marilyn, F, 35, mother of 2 young kids
  • Life event triggers interest to buy Parenthood, engagement/marriage, other dependents Rising mortgage, debts, news of an expected death, sense of personal and financial vulnerability In a M/F joint-decision household where the male takes home a majority of the household income, FTIBs tend to pursue one policy for the male but the female often initiates the need for his life policy – she is the key instigator and influencer
  • Believing life insurance companies aren’t targeting them, they turn to trusted resources.
  • Prospects have a more negative attitude toward agents than recent buyers. More prospects feel agents care more about commission while buyers feel most agents are informed and helpful. More prospects prefer to apply online compared to the buyers who used an agent to purchase. Prospects go into the insurance buying process thinking they can control the process, but find it too confusing. As a result they need to find an insurance expert to help. 63% of FTIBs prospects think agents are biased, limit their options, create undue pressure and are more interested in their own commission than the buyer’s needs
  • We need to establish credibility early on as the go-to resource and cultivate affinity, create rapport and action opportunities to hook them along the continuum. “ After doing a lot of research and even sitting down with an agent, I still think my level of knowledge is at a 2 out of 5. I’ve only become more confused and frustrated. The agent is just trying to press me and said she is telling me everything I need to know. But I’m not sure. I’d rather do more looking around online without the pressure.” Rochelle, F, 30, single with no children
  • Change the way people buy life insurance by… Helping consumers understand if/why they need life insurance Providing them with a personalized insurance recommendation Demonstrating how their recommendation satisfies their needs Presenting options to keep costs affordable Putting the consumer in control so there is never any pressure Making the consumer feel smart and savvy, not lost and confused Making the life insurance buying process enjoyable
  • Understanding that we need to be different. We need to show empathy and consideration to the fact that these people are stepping into unknown territory. They want to feel like others like them have been there before. The images and lifestyles chosen MUST represent who they are and what they need. Let them know this is for them and them alone, not for their parents. This is life insurance for the next generation of consumers – they are the next generation; make sure the images clearly indicate this. The photography must be of real people in real situations. It’s not about glossy, overly happy people living the perfect dream. It’s about being quietly confident you are in complete control of your life. Yes there are stresses, but Stonebridge can help you overcome then by delivering the security blanket you need.
  • Understanding that we need to be different. We need to show empathy and consideration to the fact that these people are stepping into unknown territory. They want to feel like others like them have been there before. The images and lifestyles chosen MUST represent who they are and what they need. Let them know this is for them and them alone, not for their parents. This is life insurance for the next generation of consumers – they are the next generation; make sure the images clearly indicate this. The photography must be of real people in real situations. It’s not about glossy, overly happy people living the perfect dream. It’s about being quietly confident you are in complete control of your life. Yes there are stresses, but Stonebridge can help you overcome then by delivering the security blanket you need.

First Time Life Insurance Buyers First Time Life Insurance Buyers Presentation Transcript