It figures that a former star National Football League quarterback is serving as the voice and the face of the LIFE Foundation’s annual campaign to bolster life insurance awareness. These days the organization, guided by President and CEO Marvin H. Feldman, is taking to the offensive with new tactics he hopes will score with new clients and help regain some of the ground the industry has lost with consumers during the past decade.
America is facing what Feldman terms “a crisis of underinsurance,” as documented by figures from LIMRA’s most recent Trends in Life Insurance Ownership study from 2010, which indicated that ownership of individual life insurance had hit a 50-year low, with 11 million fewer American households covered by life insurance compared to six years prior. What’s more, the LIMRA study, conducted every six years, found that 30 percent of U.S. households (35 million) lacked life insurance coverage, up from 22 percent of households in 2004.
Moving the needle
So how best to allocate foundation resources? Creating more life insurance buyers demands addressing both the emotional and practical/fiscal sides of the purchase decision, says Feldman, which puts the onus not only on industry groups and individual insurers but on advisors and agents to find more effective ways to inform and educate consumers.