IntelliQuote’s latest consumer survey set out to discover just how much a consumer really knew about their life insurance options. We asked a large sample of people, who already had some form of life insurance coverage, questions about pricing, policy terms, and insurance shopping habits. The results of the survey provided some interesting insights into a consumer’s ability to find the right coverage at the right price.
Life Insurance Uncovered
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Gaps In Knowledge That Could Lead To Future Problems
One of the most important findings is that consumers have large gaps in their knowledge about life insurance products. The survey asked a series of questions that ranged from general knowledge about life insurance to questions about specific life insurance terms. The results overwhelmingly show that the majority of consumers have very limited knowledge of fundamental life insurance principles. For example, only 11 percent of consumers understand the contestability clause in a life insurance policy and 87 percent are not sure what happens to a policy after the guaranteed level premium ends. This lack of knowledge could lead to unpleasant surprises for many consumers in the future. These findings highlight that the industry is failing to adequately educate consumers about the ins and outs of their life insurance coverage.
Choice Matters But Consumers Still Uncomfortable Buying Online
IntelliQuote asked consumers about their buying preferences and the results overwhelming showed that consumers value choice. A huge percentage selected buying options that allowed them to choose a plan by comparing options from multiple providers. In fact, only seven percent of respondents preferred purchasing a plan from an agent tied to a specific insurance company. Online insurance shopping for other insurance products, such as home and auto policies, has seen a huge growth over the last few years. However, only 25 percent of consumers are comfortable buying a life insurance plan online or over the phone. As more and more consumers switch to online shopping for other products it’s imperative that the life insurance industry finds a way to boost consumers’ comfort with buying policies online in order to stay in line with consumer shopping preferences. Online shopping for life insurance offers one of the simplest and quickest ways for consumers to find the best value for a life insurance product. IntelliQuote is committed to helping people take advantage of online insurance shopping by giving them the knowledge and security needed to choose and enroll in a plan online or over the phone. We’ve already helped over 100,000 people secure life insurance coverage by providing them with quotes from many A.M. Best top rated insurers.
Challenges With Finding The Right Plan
The survey findings regarding large gaps in consumer knowledge don’t just cause problems for people trying to understand their existing coverage, they also make it extremely difficult for consumers to make smart decisions when shopping for insurance. In fact, the survey results showed that many people have no idea whether they’re under or over insured, and a fifth of people simply picked a random amount for their policy coverage. Other areas where people’s lack of knowledge may contribute to not finding the right policy is an inadequate understanding of how policies are priced, how health history and family history affect coverage, and the meaning of insurance company ratings. Providing consumers with guidance on coverage needs, a basic understanding of life insurance, and the knowledge to determine insurer financial security is an essential step of the consumer shopping process that will become more important than ever as consumers move away from buying policies directly from agents.
Empowering Consumers To Take Advantage Of Online Shopping
IntelliQuote is dedicated to creating an online life insurance shopping process that is simple, secure, and helps people find the right coverage at the best price. Our 20 years of experience have helped us create an online resource that helps provide individuals and families with the information they need to make smart life insurance decisions. We’ve built a secure online quoting platform that empowers consumers to take advantage of the ease of online shopping while comparing plans from many of the highest rated insurers. If you’d like to learn more about our survey you can view the results here.
If you’d like to research your life insurance options, request online quotes using our quick and easy application form!