“People think the process is too onerous and the product is too expensive.”
That, Legal & General Insurance EVP James Galli told Karen Webster in this week’s TopicTBD discussion, is the perception of getting a life insurance policy. It’s a fact that Legal & General America (LGA) knows for sure — it’s part of the 180-year-old worldwide Legal & General Group that has been in the business of providing life insurance for American families for the last six-and-a-half decades.
The major impediment, Galli noted, isn’t that life insurance isn‘t something that consumers want — they do, particularly as they enter their 30s, settle down and begin forming families. But, “when we think about what is on people’s minds and what holds people back, it’s that they don’t know how much coverage they need, or what coverage they need, or how much it will cost. So they conclude that it costs too much and must be a very difficult process.”
On costs, he notes, the consumers are often wrong — and on average are assuming term life insurance costs 200 to 300 times more than it actually does. On process, though, LGA thought that there was room for innovation.
“We are part of a very innovative firm that is really striving to create new, different and engaging ways to bring customers in and keep them with us around the world. In the U.S., we were looking at some of the things that were happening in the property and casualty insurance arena and observed that life insurance was a little bit behind. We felt we could do something about that,” Galli said.
And what they could do about that, Galli told Webster, was work in partnership with Lapetus Solutions and leverage Lapetus’ facial analytics technology to create a better process for starting a conversation about life insurance with consumers:
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