The gap between those who say they need life insurance and those who say they have it is growing. In fact,\u00a0it\u2019s more than doubled since 2011<\/a>.1<\/sup><\/p>\n There are two factors at play.<\/p>\n First, the desire for helping protect what matters most with a life insurance policy grew significantly during the pandemic. Thirty-one percent of American consumers surveyed said they were\u00a0more likely to buy life insurance<\/a>\u00a0because of COVID-19.2<\/sup><\/p>\n The Problem: Heaping Worry on Top of Work<\/strong><\/p>\n Life is busy, and only getting busier. A quarter of respondents to a recent survey explained that they didn\u2019t have life insurance simply because they \u201chaven\u2019t gotten around to it<\/a>.\u201d1<\/sup>\u00a0Heap worry (and the discomfort of contemplating death) on top of an overloaded schedule, and it\u2019s easy to see why people put off shopping for life insurance.<\/p>\n Even as more people recognize the need, obtaining a policy remains an overwhelming task in the minds of many. They are worried it will take too much time to research options and find a provider, too much back-and-forth with a broker, too many medical questions \u2013 or worse, an exam.<\/p>\n And after all that, they worry about being able to fit costly premiums into the already tight budget. Nearly half (49%) of survey respondent without life insurance\u00a0named \u201ctoo expensive\u201d as a reason<\/a>.1<\/sup><\/p>\n The Solution: Digitalization Upends the Old Insurance Paradigm<\/strong><\/p>\n No one can blame consumers for thinking this way. After all, getting a life insurance policy hasn\u2019t been easy in the past. Fortunately, digital technology and transformed processes have turned the old paradigm upside down.<\/p>\n Credit unions have the distinct opportunity to show off this new paradigm with the integration of simplified life insurance offerings.<\/p>\n Here are three ways your credit union can help simplify life insurance for members.<\/p>\n The Results: Good for Members and CUs<\/strong><\/p>\n Putting life insurance into the hands of more members benefits credit unions as much as members. Aside from helping boost the overall sense of financial security of a membership, the products introduce much-needed non-interest income amid fast-shrinking margins. It also moves the credit union closer to earning primary financial institution relationships with more members.<\/p>\n Offering a simplified life insurance experience also could have a direct impact on a credit union\u2019s diversity, equity and inclusion (DEI) initiatives. The\u00a02022 What Matters Now<\/a>\u00a0research also found that Black and Multiracial consumers are most likely to purchase life insurance in the next five years.\u00a0Research from LIMRA\u2019s Life Happens<\/a>\u00a0study echoed those findings, uncovering that the perceived need for life insurance is highest among respondents identifying as Black (75%), Asian (72%) and Hispanic (69%).1<\/sup><\/p>\n The Future: A 60 Million Member Opportunity<\/strong><\/p>\n Forty-four percent of people surveyed say if their household\u2019s primary earner died, they would feel financial hardship\u00a0within a single week<\/em><\/a>.1<\/sup>\u00a0Life insurance policies can help remove much of the fear and anxiety that contributes to feelings of financial insecurity. Unfortunately, too many credit union members are putting off the buying process, moving through life weighed down by anxiety and without critical protection. Eliminating the stress of obtaining life insurance is one way your credit union could affect meaningful change in the lives of the millions of U.S. adults without life insurance.<\/p>\n![\"\"](\"http:\/\/www.ncultheaffiliate.com\/wp-content\/uploads\/2015\/02\/CUNA-Mutual-2.jpg\")
Second, consumers have lost tolerance for long, drawn-out buying processes. Especially since the pandemic streamlined so many day-to-day experiences, people have raised their expectations of simplified customer service.<\/p>\n\n