COVID-19 Raises Importance of Life Insurance and Drives Consumer Purchase Intent, Study Shows
August 26, 2020 by Lincoln Financial Group
RADNOR, Pa.–(BUSINESS WIRE)–As a result of COVID-19, more than a third of consumers think life insurance is more important and a similar number say they have or are planning to purchase life insurance according to a new study from Lincoln Financial Group (NYSE:LNC).1 Additionally, the study found that digital options increase the likelihood to purchase life insurance — especially among younger consumers. While 29% of all consumers surveyed would be more likely to buy life insurance if they could do so completely electronically, that number jumped to 40% among millennials.
To meet these changing customer perceptions and expectations, Lincoln continues to move toward a completely electronic process and now offers a secure online interview tool that allows customers to answer health questions more conveniently and resulting in faster application turnaround times.
“Digital capabilities are more important than ever as we work to meet the evolving needs of our customers and provide experiences consistent with what consumers are used to from other industries,” said Heather Milligan, Senior Vice President, Underwriting & New Business, Lincoln Financial Group. “The global pandemic has increased awareness around the need for life insurance and now we have to make sure the process is streamlined and convenient. Our online interview tool is the next step in our digital evolution.”
A Quicker and Easier Experience
The new online tool provides the following benefits:
- Previously, the interview was done over the phone but now the same questions are available for customers to answer online, via a secure link, after their application request is received by Lincoln.
- In less than 30 minutes, the online interview process can be completed.
- This capability makes the process convenient and private for customers and results in faster turnaround times.
- The tool is mobile friendly, allowing customers to complete on any device.
- Customers can opt to continue their interview over the phone with a Lincoln representative if they prefer.
“The COVID-19 pandemic has clearly highlighted the importance for life insurance carriers to digitally transform manual processes and partially digitized ones,” said Robert McIsaac, Executive Vice President, Research and Consulting, Novarica, Inc. “Another reality is that the pandemic has accelerated the adoption of digital capabilities which were already well along in other aspects of financial services. Moving aggressively to address these matters allows carriers to improve the customer experience, make it easier to do business and create competitive advantages in key areas – advantages that we expect to be critical in an increasingly competitive future.”
This is the latest advancement as Lincoln offers a completely digital end-to-end life insurance purchase process, including the ability to receive a quote online using Lincoln’s own underwriting rules, apply for a policy online and have the policy signed and delivered electronically. The process is further streamlined with Lincoln’s automated underwriting capabilities and the potential for clients to have underwriting labs waived.
Once life insurance is purchased, in-force life insurance customers also have access to an omni-channel customer experience at Lincoln Financial. Customers can use the website to access the Ask Abe chatbot to answer many general and policy specific questions. Ask Abe is available 24/7 and offers the option to talk with a live representative during normal business hours for more complex inquiries. In addition, a new digital beneficiary form allows customers to complete beneficiary changes online, while Lincoln Financial’s iClaim makes for an easy-to-use online claim submission process allowing for faster turnaround times, improved submission accuracy, and a simplified client experience during a difficult time in a claimant’s life.
The online interview tool is available now for Lincoln TermAccel® and will be available August 24 on all LincXpress® ticket submissions for single-life UL (Universal life), IUL (Indexed Universal Life), VUL (Variable Universal Life) and Lincoln LifeElements® Level Term cases.
Lincoln is committed to investing in data, tools and technologies that enhance the customer experience and make it easier, and quicker, for customers to buy life insurance. Other recent examples of that commitment include a Spectra quick quote tool, mobile platform for customers to review their underwriting medical exam and laboratory results, the expansion of its automated underwriting capabilities, and the launch of a unified life insurance application and case tracker for financial professionals.
Survey Resources for Media
- A ready-to-publish ‘Top 5’ survey findings slideshow is available here for media outlets to download and use.
- Complete findings from the 2020 Lincoln Financial Group Life Insurance Awareness Month Survey are available here.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $270 billion in end-of-period account values as of June 30, 2020. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ World’s Best Employers, Best Large Employers, Best Employers for Diversity, Best Employers for Women and JUST 100, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.
- Lincoln Financial Group / Engine Insights, Life Insurance Awareness Month Survey, July 17-19, 2020
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