The Ability to Sell Security in an Instant Gratification World

Despite its many benefits, life insurance is eventually an opaque product which leaves customers in the dark about their status of savings or wealth. This sense of disconnect creates a barrier discouraging consumer adoption and satisfaction.

It is a well agreed fact that the Life Insurance industry is operating on the maxim “Insurance is ‘sold’ not ‘bought’”. Since potential clients don’t seek out these products, this belief is solidified, making sales efforts carry the backbone of the industry.

However, with fewer individuals actively seeking life insurance, sales numbers have seen a noticeable decline, further intensifying the pressure on chief distribution officers of life products. Many clients view life insurance as a long-term commitment without immediate rewards, leading to a lack of perceived value. In particular, the MENA region has seen a decline in life insurance uptake as observed from a study conducted by Atlas Magazine.

“Life insurance, once seen as a cornerstone of financial security, now finds itself at a crossroads. In a rapidly changing world, its traditional appeal has waned, leaving many to question its relevance in the lives of modern consumers. As expectations evolve, the future of life insurance remains uncertain, urging a deep examination of how it can adapt to the demands of a new generation.”

The decline is attributed to the difficulty in engaging potential customers, who may not completely understand or appreciate the benefits of life insurance, despite the numerous advantages offered like tax benefits or family protection. For professionals in the industry, this presents a significant problem: they must find a way to make their products more attractive and relevant to the modern consumer in order to boost sales.

For Heads of Distribution, the struggle becomes more apparent, as their central role involves making their companies’ products desirable to clients. They are well aware of the challenges in the industry yet need to find a solution that can tackle these struggles. While the need for life insurance is undeniable, the challenge lies in making the product appealing in an environment where immediate gratification takes precedence.

The lack of constant engagement with life insurance policies post purchase contributes to the issue, leaving clients feeling disconnected with such personal plans. Life Insurance, despite its many benefits, is eventually an opaque product which leaves customers in the dark about their status of savings or wealth. This sense of disconnect creates a barrier discouraging consumer adoption and satisfaction.

With this in mind, the real question is: How can life insurance distributors revive interest and improve customer engagement in a climate where traditional selling methods are no longer as effective?

The article not only dwells on this question but also explores how integrating modern tools like an Investment Robo Advisor can complement such a vital household protection product, making it appealing and engaging to today’s digital and savvy consumers.

Selling Security in an Instant Gratification World

As customer perceptions of life insurance continue to evolve, so do the challenges faced by the Distribution teams. The traditional method of selling life insurance, which focuses on matching clients with a product that fits their lifestyle or budget, is no longer enough to spark interest. At present, customers are concerned with wealth building and short-term immediate goals like paying bills or buying a car, rather than concerning themselves with long-term security that is one to two decades away, which doesn’t offer the instant gratification they crave. This has left life sales professionals scrambling to find new ways to sell their products to reignite interest.

In a climate of declining life insurance consumers, the focus on product appeal is more critical than ever. Customers are less likely to purchase a policy which they don’t feel engaged with. A traditional life insurance policy, while offering financial protection in the event of death or disability, lacks the continuous engagement that customers expect from modern solutions. To overcome this, distributors need to evolve their strategy and present products that can do more than just offer basic protection.

“The solution lies in merging the long-term security of life insurance with the immediate, interactive experiences that today’s consumers expect with personal finance — creating a dynamic product that aligns with both their financial goals and their need for engagement.”

 Another challenge Life Distributors face is the common misconception that life insurance is not needed for younger, healthier individuals. People view it as a product they won’t need until later in life, as their current focus is more geared towards wealth accumulation and short-term financial goals.

This is the core reason why life insurance fails to reach a broader audience. Distributors need to shift their approach by offering products that integrate with the wealth building goals of these modern consumers, while also making them feel engaged with tangible, real-time benefits.

How Investment Robo Advisor Unlocks Life Insurance Potential

To address the evolving demands of modern consumers, life insurance needs a significant transformation. A potential solution for the challenges discussed is the integration of an investment Robo Advisor into life insurance, such as the one provided by MenaMoney Technology. Such integration has the potential to clearly and tangibly blend and associate life insurance with long-term savings and investment.

As majority of people are focused on wealth building and returns on their savings, combining the Robo Advisor with life insurance would offer clients a lot of benefits beyond long-term financial security. The goal-based investing offered by a Robo Advisor, for example, with its gamified digital interface with actuarial calculators, various risk profiles and risk-adjusted investment options, portfolio dashboards, etc. creates a more attractive user experience, giving consumers more control over their financial future.

While a Robo Advisor enables life insurance firms to meet the growing demand for wealth-building products, it also allows their Clients to use the Robo Advisor to actively invest and track their portfolios and wealth through gamified illustrations, great investment options and modern Apps.

As clients receive daily Net Asset Values (NAV) of their investments, see the posting of their monthly contributions, and are able to make requests or switch risk profiles or funds plus many other features, this provides them with immediate feedback and gratification which helps alleviate the feeling of detachment that often accompanies traditional life insurance policies.

With this approach, clients are no longer passive participants in their financial planning, rather they are actively involved in the management of their portfolios, which leads to a greater sense of ownership and satisfaction with their policies.

The solution appeals to their desire for wealth building and short-term goals of modern clients, while also offering a blanket of financial security with benefits in the long term. This proposition obviously resonates with a broader demographic, hence leveraging the life insurance distribution.

Integrating the Investment Robo Advisor into life insurance offers a solution to the challenges Heads of Life Distribution face. It gives a more engaging, goal driven experience combining protection with wealth building needs. This could be a great fit for life insurance firms seeking to transform their distribution, gain a higher market share and stay ahead of the curve.

If you are ready, please Contact us at MenaMoney Technology.