Pandemic is increasing money woes, interest in life insurance, Prudential finds
September 16 2020 - 8:00AM
Business Wire
As Life Insurance Awareness Month continues, there’s an
increasing need for easier access to financial solutions via
technology.
Nearly half of Americans (45%) surveyed during the COVID-19
pandemic said they do not own an individual life insurance policy
and a similar amount (48%) said they are concerned about their
financial future, according to Prudential’s latest Financial
Wellness Census. The pandemic environment has put mortality and
financial wellness into sharp focus, and accelerated the need for
simple, digital options for buying financial products, including
life insurance.
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“As we continue social distancing, it’s more important than ever
to find ways for people to buy life insurance the way they want,
whether online, over the phone talking to an advisor, or a hybrid
of both methods,” said Salene Hitchcock-Gear, president, Prudential
Individual Life Insurance. “To that end we are enabling a
high-tech, right-touch approach.”
While interactions between consumers and financial professionals
have been largely, if not entirely, virtual due to the pandemic,
the good news is trust in the insurance industry is at an all-time
high, according to LIMRA research,[1] as an increasing number of
consumers seek life insurance coverage.
Even as COVID-19 continues to keep the question of mortality
front and center, a record number of Americans—36%—are saying they
intend to purchase life coverage in the next 12 months, according
to LIMRA. By comparison, in 2011, the figure clocked in at just
11%. Further, there is interest even among those with a life
insurance policy to increase their coverage.
“We’ve seen a surge in awareness about the importance of life
insurance as 11% of the general population has expressed interest
in expanding their life insurance coverage since the onset of the
pandemic,” said Hitchcock-Gear. “In addition, this figure nearly
doubles for Black Americans, and we know COVID-19 has
disproportionately affected this population in many ways. We are
focusing on how to bring needed solutions to people in this time of
uncertainty.”
This increased consumer interest presents the potential to
reverse a decade-long decline in life insurance ownership, which
has decreased by 10% since 2011, according to LIMRA’s research.
Turning intention into action, however, requires innovation in the
form of more easily accessible life insurance options.
Already, the pandemic has increased interest in Prudential’s
e-capabilities, which aim to make life insurance more accessible to
more people. For example, accelerated underwriting and digital
application processing are being adopted more quickly than
previously anticipated.
With 10% of Americans losing employer-provided life insurance
coverage as a result of the pandemic, according to Prudential’s
2020 Financial Wellness Census, more people are left unprotected,
increasing the existing $12 trillion gap in household life
insurance need.2
Rather than charting a new course for Prudential, COVID-19 has
instead accelerated the company’s ongoing work to implement
innovative technology and platforms to meet this growing consumer
need. The pandemic’s disparate impact on Black Americans and
communities of color has also sharpened Prudential’s focus on
addressing the financial needs of those populations.
“The need for easily accessible life insurance solutions has
never been clearer,” said Hitchcock-Gear. “Black consumers in
particular, with $1.3 trillion in buying power and a demonstrated
interest in life insurance represent a significant area of focus
for us. We are doubling down on our efforts to serve the needs of
this population and millions of others across the country as we
look to increase our ability to reach more people.”
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a financial wellness
leader and premier active global investment manager, has operations
in the United States, Asia, Europe and Latin America. Prudential’s
diverse and talented employees are committed to helping individual
and institutional customers grow and protect their wealth through a
variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood
for strength, stability, expertise and innovation for more than a
century. For more information, please visit
news.prudential.com.
[1] LIMRA’s 2020 Insurance Barometer study.
22016 LIMRA Ownership Study
Life insurance is issued by The Prudential Insurance Company of
America, Newark, NJ, and its affiliates
1040179-00001-00
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Jamie Lorenz 973-803-2450 jamie.lorenz@prudential.com
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