Just who is buying life products?

Just who is buying life products?

Insurance News


Our Canadian sister site, Insurance Business Canada, asked brokers who among their clients were buying life insurance products – and it appears the real action isn’t where you might think.

The Insurance Business web poll question, ‘Who is more likely to purchase a Life Insurance product?’ broke down the answers into five areas:

    - Retiring Baby Boomers;
    - Young TwentySomethings;
    - Women;
    - Men; and
    - Business clients.

The runaway winner was business clients, garnering double the votes of Boomers and TwentySomethings put together.

The genders were evenly split, with men and women collectively receiving the same votes as business clients.

The growth of supplemental life insurance products for employees has been marketed to employers as a means to not only keeping valued employees within an organization, but through such unique offers as ‘Key Employee Insurance’ – like that offered through HUB International – it allows a company to bridge difficult transition periods if a key employee or senior manager is no longer able to work.

According to Steven Schwartz, vice president of executive benefits at HUB International Northeast, he says that a business should try to calculate how much profit is attributable to an employee, as well as how many years it will take to fully replace it.

“Besides the obvious loss of revenue resulting from the death or disability of a key employee,” says Schwartz, “it's important to take the costs related to replacement into account, as this may include employment agency fees and a difference in salary.”

Tell us what do you think – and don’t forget to participate in our new poll now on the website: ‘What do you think of Wal-Mart's new venture into auto insurance?'


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