Life Insurance Purchased on Perceived Value, Not Cost

That adage about a life insurance policy being sold and not bought needs to be updated for the post-pandemic era. In fact, customers are initiating the purchase of life insurance, but the key criteria for choosing which one to buy often involves much more than cost. According to the J.D. Power 2022 U.S. Life Insurance New Business Study,^SM released today, a customer’s perceived value and the view that insurers are making recommendations in the customer’s best interest are the key factors influencing life insurance shoppers to choose one brand over another.

"It is noteworthy during this inflationary period when price has become the most important factor in so many consumer purchase decisions that life insurance customers are more concerned with their future and the insurer’s ability to make good on their promises than they are about price,” said Robert M. Lajdziak, director, global insurance intelligence at J.D. Power. “This puts the onus on carriers to differentiate, clearly convey their unique value propositions and make sure prospective customers fully understand all aspects of their policy offerings.”

For additional key findings from the 2022 study, read the full press release.