Life insurance term paper
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Although half of consumers prefer to purchase life insurance in person with a financial adviser or agent, the second most popular method was online, with 21 percent of respondents opting for that method, according to the 2016 Insurance Barometer Study survey by the Life and Health Insurance Foundation for Education (LIFE) and LIMRA. These proportions did not change from 2015’s survey. Ten percent or less respondents chose purchasing life insurance at their workplace, email, mail or over the phone. When asked why they prefer to purchase life insurance online, three-quarters of those consumers said the major reason was convenience and the ability to purchase at their own time and pace, according to LIMRA. Three out of five respondents cited the ability to research and the ease and speed of purchasing life insurance online as major reasons. Other reasons were the ability to comparison shop (58 percent or 3 out of 5 approximately) and lack of pressure to buy (55 percent) and comfort and confidence (45 percent). Nearly 30 percent of respondents have purchased or attempted to purchase life insurance through the internet, half within the past year. However, few actually completed their application online, and most were directed to meet with a financial advisor or agent. Half of online shoppers used a quoting engine website in 2016, compared with about 40 percent a year ago. This proportion rose to almost three-quarters for Millennials (ages 18 to 35). Eighty-eight percent of consumers say they would use the internet to research life insurance before purchasing coverage, about the same number as a year earlier. Ninety-five percent of Millennials would use the Internet to research life insurance. That amount falls for older age groups, down to 70 percent for consumers age 65 and older.