Making the Most of LIAM

Now is the perfect time to raise awareness of the importance of life insurance.

From an historical standpoint, life insurance has been providing vital protection to consumers in the U.S. for more than 200 years. However, despite having been around since the late 1700s, many consumers are not aware of how versatile and useful life insurance is.

According to LIMRA, 38 percent of men and 41 percent of women have no life insurance at all. While the majority of owners say a major reason they have life insurance is to cover their funeral and final expenses, it’s encouraging to see that some are seeing permanent life insurance as a way to supplement retirement income, even if it’s only cited as a minor goal.

Clearly, there is a huge opportunity to increase the number of people who would benefit from insurance and advisors are uniquely positioned to make this happen. Education is key, and considering September is Life Insurance Awareness Month, now is the perfect time to raise awareness of the importance of life insurance and the many benefits permanent life insurance products have to offer.

Hurdles to overcome

The biggest challenge associated with life insurance awareness is the simple fact that people do not like discussing or thinking about death. Couple these morbid thoughts with life insurance terminology and jargon that is difficult to understand and consumers just check out.

It’s understandable, and it is a primary roadblock preventing many consumers from purchasing a policy. However, it’s critical to change this perception of life insurance if we are to get more consumers the security and protection it provides.

Work with clients and prospects to pivot the conversation toward the “living benefits” that life insurance can provide, as opposed to the more morbid, death-related aspects. Ensure your clients understand that the cash value that builds in certain permanent life insurance products can play a pivotal role in preparing for college payments, starting a business or planning for retirement.

By shining the light on these living benefits, consumers can appreciate how life insurance can help them reach their financial goals. Education will reduce the aversion and intimidation naturally associated by the product if the emphasis is on “the D-word.”

At the same time, demystifying the terminology and simplifying “outdated” language will help overcome the traditional conversation hurdles. Life insurance shouldn’t be viewed as an expense, but rather, an asset and the cornerstone of a sound financial plan.

How we’ve taken advantage of LIAM

A strategy that has worked for us in changing perceptions is adding humor to our LIAM-associated marketing campaigns. Last year, Penn Mutual published weekly cartoons during September. We also conducted a “Would you Rather” survey, asking respondents if they would rather talk about life insurance or perform unpleasant tasks like waiting in line at the DMV. From there, we directed and shot a humorous man-on-thestreet-style video that polled random individuals on what they would rather do. Users landed on a microsite that was dedicated to raising awareness and provided an engaging and educational way to reach consumers.

The whole point of LIAM is to get people thinking about life insurance. If advisors can do it in a creative and engaging way, reaching the consumer is much easier. While surprising, the statistics mentioned about life insurance highlight the fact that consumers are mostly uninformed about the product and its benefits. This represents a major opportunity for advisors to change perceptions, spotlight the true value that life insurance provides, and work directly with clients to understand how this tool can be positioned as the cornerstone of a sound financial plan.

Jeffrey Fleischman is Penn Mutual’s Senior Vice President, Chief Marketing and Digital Officer. He is responsible for overseeing Penn Mutual’s corporate branding, marketing programs, market research, conferences and recognition, corporate communications and interactive marketing. For more information, visit www.pennmutual.com