1 in 5 People Would Prefer to Purchase Life Insurance from Wal-Mart or Costco
In the past, purchasingÂ life insuranceÂ from aÂ local retailer was not an option, but times have changed, according to a new survey released by LIMRA and the LIFE Foundation. Now that retailers likeÂ Wal-MartÂ have begun offering coverage in the United States, consumers are open to the idea of taking this route instead of working with a financial professional.
Life Insurance from Wal-Mart and Costco
A survey conducted by LIMRA and the LIFE Foundation, as a part of their third annual Insurance Barometer Study, found 17 percent of consumers polled would buy life insurance directly from a retail outlet like Wal-Mart, Coscto or Target.
The reasons consumers felt comfortable with the idea of purchasing coverage from a retailer include:
- Reasonable cost (63 percent)
- Simple process (44 percent)
- Convenient (42 percent)
- No pressure to buy (42 percent)
However, while nearly one in five shared their comfort with buying life insurance from a retailer, the majority of consumers polled said they would prefer to buy coverage in person from a financial professional, partially because the idea of buying from a retailer is so foreign.
“In light of the novelty of the concept and that few people have actually shopped for life insurance through a retail outlet, there is likely to be considerable confusion in the eyes of the consumer as to what such a purchasing experience might entail,” Todd A. Silverhart, corporate vice president and director of LIMRA Insurance Research, said in a prepared statement.
Is Wal-Mart Life Insurance for You?
Retailer-sold life insurance is still a new concept for most people, but since it is now available at stores like Wal-Mart in the United States, how can people who are strongly considering purchase decide if it is right for them?
The key is looking closely at the low-cost options out there to see which matches family dynamics and budget best.
For instance, Wal-Mart is offering life insurance afterÂ teaming up with MetLifeÂ in 2012. The retailer and life insurer createdÂ life insurance cards that are sold at roughly 200 Wal-Mart stores in Georgia and South Carolina. The cards offer consumers access to low-cost term life insurance that lasts one year and covers individuals for $10,000 or $25,000.
For some, the coverage option could be considered limited in terms of payout amounts and term duration. But for others, being able to pay less than $100 for $10,000 worth of coverage is perfect.
As with all insurance products, it’s important for consumers to look at each life insurance option individually to determine how well it matches their family’s specific circumstances. After conducting thorough research, some may determine that buying coverage sold at a retailer is the right choice for them.
Image:Â Walmart Corporate