It's not just about needs...it's about wants

For many years now, the pundits have all suggested the life insurance is becoming commoditized.  Purchasers are being driven to the internet to buy their life insurance and even develop the need. 


I guess that makes sense, developing their own need.  This isn't some calculus equation.  It can be quantified and....commoditized. 


Why then do the industry show that we're a grossly underinsured society?  In 2013, LIMRA reported that only 44% of Americans own individual life insurance.  The same report suggested only 16% of people would prefer to purchase insurance online.  So, maybe people are not really doing a good job of tending to their own life insurance planning after all.  And, maybe they just don't want to buy it on their own. 


Here's a good experiment.  Ask a friend or family member when's the last time someone asked them about life insurance (assuming you're not in the business and haven't asked them yourself).  I'll bet nobody has asked them.


Somewhere along the line the magic of life insurance has left the industry.  Somewhere along the line the power of life insurance has left the planner.  Somewhere along the line the fact that life insurance can address a person's "wants" in case of a premature death as much as their "needs". 


Take the two income family.  Husband is an sales rep; Wife is an accountant.  Maybe they aren't even the typical family - maybe they are prudent enough to have kept debt down and lived within their means.  They've got two kids; and SUV and a Minivan. 


I think you could argue they do not "need" much life insurance.


But let's say the husband sees how rough the wife's professional life is.  She hates her boss.  Works long hours.  They don't need much life insurance, but he "wants" her to work less if something should happen to him. 


He wants her to spend more time with the kids if he's gone.  He doesn't want her stressed and scared that if she loses her job - it happens, you know - she doesn't have to fret about not having a safety net.


Or that they can easily send the kids to a private college.


or they can travel together.


or he can impact a charity. 


Life insurance is not just a need.  It's a want. It's what has made it magical historically.  And, to a great extent it's what we've lost as an industry and as consumers.