The prices of coverage purchased using five-year or 10-year payment period options remain unchanged, but the prices for younger consumers who are buying coverage with one-time payments or recurring premium payments have fallen by up to 15%, the company says.
OneAmerica says it cut prices partly because of rising interest rates and partly because of customers’ focus on savings.
“We’re excited to offer cost savings to our customers at a time when everyone could use a little financial relief,” Jeff Levin, vice president of distribution for the Care Solutions products, said in a comment about the premium cuts.
4. Combine two important, related types of coverage.
Many consumers who turn 65 need insurance that will cover the cost of funerals and other end-of-life expenses as well as health insurance.
They may buy Medicare supplement insurance from an agent, then give up on trying to buy final expense coverage, because buying a life insurance policy designed to pay end-of-life expenses is often more difficult and more time-consuming.
AmeriLife Group, a distributor, has tried to solve that problem by working with an insurer, American Home Life Insurance Co., to develop a Patriot Series program that can provide Medicare supplement insurance and final expense coverage at the time.
An agent who offers the program can sell a client a Medicare supplement policy, then use an electronic application system to enter the client’s answers to life insurance underwriting questions.
American Home can then issue the end client expense coverage at a discount of up to 20% off the usual premium, AmeriLife says.
5. Just make the sales process work better.
WrightLife Insurance Group is working with Afficiency, an insurtech company, and The Savings Bank Mutual Life Insurance Co, of Massachusetts to set up a website, GetMeCoveredNow.com, that will sell term life coverage through a quick, fully digital underwriting process.
6. Catch crooks.
Despite the new emphasis on fast, simple underwriting, life insurers still want to detect liars.
One risk life insurers face is applicants with hidden “jumbo” coverage.
US life insurers typically limit the amount of automatic reinsurance available per person. Limits may range from $35 million to $65 million.
Some applicants try to get around jumbo policy limit constraints by applying for coverage from several insurers and hiding how much coverage they actually have.
MIB — a nonprofit group that helps life insurers share fraud-fighting data — and TAI, a Canadian firm, have joined to tackle the problem by creating the MIB Jumbo Service.
The service uses a TAI database that holds information on about 74% of in-force US life policies and a MIB database that holds information on most US life insurance applications to detect jumbo treaty breach risk.
The first jumbo risk search detected about 300 people who each had in-force coverage and pending coverage with total death benefit levels of $50 million or more.
Pictured: Eric Henderson (Photo: Nationwide)