Why Life Insurance Is Still The Mainstay Of Worksite Marketing
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In an industry and an economy where double-digit sales growth is harder to find than a sushi restaurant in Joplin, Mo., the growing interest in worksite marketing is easy to understand.
Whats harder to understand is how little attention is being paid to one of the fundamental products fueling worksite marketing growth: voluntary life insurance.
Outside the insurance industry, of course, the notion of marketing life insurance conjures images of agent Ned Ryerson in the movie "Groundhog Day." Ned accosts people on the streets of Punxsutawney, Pa., asking, "Do you have enough life insurance?" If you think this is merely a Hollywood parody, bring up life insurance sales at a cocktail party and see how fast you clear the room.
Despite the lack of a sexy image, life insurance continues to be a staple of the worksite marketing segment.
Year after year, voluntary life sales continue to make up a significant portion of total voluntary sales.
This is isnt terribly surprising. People understand the need for life insurance, whereas many other worksite products require more extensive consumer education to motivate the employee to buy. And, in a business where time truly is money, selling life insurance can be less time consuming for the intermediary.
In short, the strong track record of voluntary life makes sense. Its getting so that life insurance and worksite marketing are the industry equivalent of Reeses Peanut Butter Cups: The ingredients are great by themselves, but even better together.
This is so despite employee access to other distribution outlets–like individual agents and Internet life products.
In todays market, there are nearly as many worksite life insurance options available to employers as there are candidates in the California gubernatorial recall election. These include various forms of voluntary life, whole life and term.
Currently, voluntary life sales generally are split between term and cash value life products. Employees purchasing coverage at the workplace get the benefit of individual customization (just like buying over the kitchen table) and at the same time the benefits of employer sponsorship and payroll deduction.
Many individual life products are sold on a "simplified issue" basis. That is, an employee is asked a few health questions and is either accepted or rejected off the card.
