The Importance of Life Insurance As Diversity in the Industry Expands

As important as having life insurance is, the ability to provide the best service is related in part to diversity in the industry to bring different perspectives. In light of the upcoming Women in Insurance Summit Chicago (date TBD), which will look at how insurance providers can drive innovation, find new areas of growth and new opportunities, and keep employee engagement high, it’s worth looking at some steps to take before buying a policy of your own.

A major area of diversity and equality is the number of women in the industry. A notable
65.6 percent of those working in the underwriter life insurance industry are women. In North America in particular, every level of the insurance industry is more diverse on average than other industries. According to McKinsey research, it is between seven and 14 percent more diverse than any other industry, with an entry-level employment rate being two-thirds of women. Young people are also increasingly choosing insurance, including life insurance, as a career.

While statistics about diversity and more women in the industry are all well and good, what does it mean practically? A look at the overall industry can help, but one thing to keep in mind practically when looking for a life insurance policy is minimum account requirements. Advisors can set
these themselves, and they generally range between $100,000 to $1 million or more. To work with an advisor, there are often project-based plans, hourly consults, monthly retainers, and flat fee options. Checking with a financial planner periodically can make a big impact on how effectively life insurance fits into an overall financial plan and can take into account life events such as having a baby, job loss, marriage or divorce, or other important events.

To determine your premium, an underwriter will review your health record and lifestyle. You will be classified according to risk, and underwriting can take five to six weeks. Automated underwriting is sometimes used, which uses a computer program to speed up the process. Manual underwriting is completed by a person and can be especially useful for those with more complicated needs or histories.

While diversity including more women in the industry may not seem to matter when searching online and/or in person for a life insurance policy, what goes on behind the scenes impacts what’s available to you and can result in more options to choose from, especially when it comes to life events. Innovative ideas come from all sorts of places – something that will likely be discussed
at the upcoming Chicago insurance summit.