September’s Life Insurance Awareness Month is nearly upon us.
Out of habit and respect I go to our industry’s preeminent research organization, LIMRA, for life insurance sales and consumer information to deliver a soliloquy in advance of the formal start of LIAM. In my rose-colored crystal ball I would see every American with a dependent of any kind—including even our beloved pets—in possession of life insurance protection on some minimal level at the least. That is not to say that I believe life insurance should be considered a human or American “right,” and yet it doesn’t take much of a flight of fantasy, feathered by Obamacare sycophant malapropism, to envision such a call. But I digress.
One flaw in an August call-to-arms/primer is the unavailability of LIMRA’s 2015 Facts of Life, annually repurposed as a LIAM Fact Sheet. I encourage you to look on www.limra.com during the weeks ahead to find the 2015 version. In its 2014 information, LIMRA reveals that less than half of middle market consumers ages 25 to 64 have individual life insurance coverage, and 44 percent of those without say they need it. Problem halfway solved!
Oops…maybe not. Almost 70 percent of consumers say required cost-of-living expenses are keeping them from buying some or more life insurance. Expenses cited included internet, cable and cell phone costs.
A large portion of people procrastinate when it comes to shopping for life insurance. Reasons include not knowing what kind of coverage to buy or how much they need. (My therapist, at least, would suggest a much more varied and vibrant Howard tapestry of procrastination causality.) Enabling the procrastinators of purchase above, however, is the LIMRA-gleaned fact that only about one-third of adults have someone they consider their agent or financial advisor whom they feel could help them determine what they need. I find this a bit surprising, considering how many times annually I receive a life insurance solicitation from the career agent from whom I purchase my auto and homeowners coverage. Regardless, it highlights our industry’s penetration problem in the middle market and leaves millions of Americans unprotected—Americans it should be our privilege and duty to serve.
On a slightly more upbeat note, a recent release from LIMRA reports an individual life insurance sales increase of 8 percent in the first quarter of 2015. Total individual new annualized premium increased 8 percent while policy count increased 5 percent, according to LIMRA’s Retail Individual Life Insurance Survey. New annualized premium increases by product line: Total universal life up 7 percent; Indexed UL—11 percent; Lifetime Guarantee UL—1 percent; Variable UL—21 percent; Whole Life—9 percent; Term—2 percent. For more great info visit www.limra.com. [SPH]
It is my delightful duty to announce that W. Harold Petersen, chairman of Petersen International Underwriters, insurance industry sage, historian and champion, and great friend to Broker World, has been inducted into the Iowa Insurance Hall of Fame. He was one of five insurance professionals so honored at the Hall’s 19th annual ceremonial dinner. An Iowa native, Petersen was raised on a humble dairy farm in Council Bluffs, where he witnessed first-hand the financial devastation caused by the sudden disablement of his father. From this bleak starting point evolved Petersen’s lifelong advocacy for disability insurance and mission to help Americans protect their most valuable asset—their ability to earn an income. His insurance career started in 1948 as an underwriter at Mutual of Omaha, and the bulk of his early career was spent in and around Iowa. It was there that Petersen started his own disability carrier called Underwriters National Assurance Company, which he ran until his move to Los Angeles in 1967. In L.A. he formed an insurance marketing and management firm that evolved into Petersen International Underwriters, focusing on the high limit and specialty disability insurance market. After more than 33 years, PIU remains the largest Lloyd’s Coverholder in the American disability market. In his 65 years serving the insurance industry, Petersen has mentored countless agents, lectured at dozens of universities, volunteered thousands of hours to industry associations, developed nationally sanctioned insurance training courses and, perhaps most proudly, co-founded the International DI Society. His accomplishments have been previously recognized by NAHU, NAIFA state and local chapters, and the IDIS—each of which has bestowed upon him its most prestigious award.
Personally, in the 30 years I’ve known Harold I have found him to be a man of unshakable integrity, maintaining and encouraging the highest levels of ethical conduct. He has served as a role model and mentor to me and countless others. I deeply admire him as a man, respect him as an industry expert, laud him as a true industry champion, and am extremely proud to be able to call him friend. [SPH]
