U.S. life insurers pay out almost $100 billion in death benefits each year, yet fewer than one in ten beneficiaries go on to become customers themselves¹. The Empathy and LIMRA research uncovered this gap is not due to a lack of beneficiary engagement, but rather a lack of relevant, human-centered support aligned with what beneficiaries are actually experiencing during one of the most vulnerable moments of their lives. While the industry has optimized for operational efficiency and a smooth claims process, these efforts often fall short of addressing beneficiaries’ emotional and practical needs, resulting in a transactional experience that fails to build long-term and generational loyalty.

“What this research makes clear is that the claims moment is not just an operational milestone or well-executed transaction, it’s a relationship-defining experience,” said Ohad Gutman, Chief Business Officer at Empathy. “When the beneficiary is handled with clarity, empathy, and meaningful support, it can lead to long-term loyalty. When it’s treated as a transaction, that opportunity is lost.”

Key Findings from the Research

The study surfaces several critical insights into what drives and limits long-term engagement following a claim:

The claims experience performs well operationally, but falls short as a relationship moment

• 91% of beneficiaries report being satisfied with their claims experience
• Core elements like communication (87%), clarity (85%), and timeliness (83%) are rated highly
• Yet according to LIMRA, fewer than 1 in 10 beneficiaries go on to become customers, highlighting a disconnect between satisfaction and long-term loyalty²

Perception after the claim is the strongest predictor of future business

• Post-claim perception is the #1 driver of both recommendation and purchase intent
• Among less satisfied beneficiaries, 71% say a better experience would have increased purchase intent, while 78% say it would have increased their likelihood of recommending the carrier

A major “delivery gap” exists between the support beneficiaries want and what they receive

• 84% say dedicated support such as a specific person to guide them, grief or financial resources, or tools to help manage the process, would make the insurer more appealing
  • Financial education: 65% want it, only 25% receive it
  • Grief resources: 68% want it, only 35% receive it
  • Emotional wellness programs: 81% want it; 24% receive it
  • Assistance with probate: 81% want it; 17% receive it
  • Well-being check-ins: 76% want it; 43% receive it

Beneficiaries are highly open to ongoing engagement

• 96% are open to post-claim communication across channels
• Most prefer personalized, practical guidance and not generic outreach

A Shift From Transaction to Relationship

The research reframes the claims experience as a pivotal moment in the customer lifecycle, not the end of a transaction but the beginning of a relationship.

“This research shows that beneficiaries are not inherently disengaged – they are highly open to continued interaction,” said Lai-Sahn Hackett, Corporate Vice President at LIMRA. “It underscores an opportunity for insurers to rethink how the claims experience contributes to ongoing engagement and business outcomes.”

The findings highlight that beneficiaries are not disengaging by default, they are responding to the experience they receive. While insurers have made meaningful progress on operational efficiency, the research shows that emotional and practical support during and after the claim is what ultimately shapes long-term outcomes.

Technology and Support as the Next Frontier

As expectations evolve, the industry is beginning to shift toward more holistic, support-driven models of care. Solutions that combine digital tools with human guidance can help carriers extend support beyond the payout and better meet beneficiary needs.

To read the full report and its findings, visit empathy.com/resources/research/generational-loyalty-blueprint.

ABOUT EMPATHY

Empathy is a leading technology company transforming the way people plan for and navigate life’s toughest moments. Serving over 50 million policyholders across North America and the UK, Empathy partners with eight of the top ten U.S. life insurance carriers and handles one in five life insurance claims in the U.S. beyond the payout. With $162 million in funding from top-tier venture firms including Index Ventures, General Catalyst, and Adams Street Partners, Empathy combines technological innovation with human care to provide unparalleled support for bereavement, estate management, legacy planning, disability and more. Recognized by Apple, Google Play, Fast Company and others, Empathy is redefining the standard for modern family care. Learn more at empathy.com.

About LIMRA

Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help nearly 700 member organizations, in almost 60 countries, navigate change with confidence. Visit LIMRA at www.limra.com.

ABOUT THE STUDY

This research was conducted by Empathy in partnership with LIMRA’s Applied Research Solutions team using a hybrid methodology. Phase one included a quantitative survey of 272 life insurance beneficiaries, followed by in-depth interviews with 12 participants to provide deeper emotional and behavioral context.

¹ American Council of Life Insurers (ACLI) data. Life Insurers Fact Book (2022–2025); Insurance Information Institute / NAIC benefits and claims data.

² LIMRA Research