Nearly two-thirds of customers in the US prefer to pay a flat fee when buying life insurance according to a LIMRA survey.
The LIMRA survey said 60% of Americans prefer to pay a flat fee when buying life insurance while only 14% said they would like the finance professional to be paid through a commission (% of purchase).
Jennifer Douglas, research director at LIMRA developmental and strategic research, commented: “In today’s world, most Americans are solely responsible for their financial security. Having a solid understanding about their finances, including their risks and needs, seems critical.”
When it comes to insurance and financial risks advice, the study said the median one-time fee Americans are willing to pay is $75.
This is despite the fact that 84% of those surveyed who work with a financial professional believe their adviser provides excellent value for money and put the client’s interests first.
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Douglas added: “Prior LIMRA research shows that one of the top reasons people don’t buy life insurance they say they need is because they don’t know what to buy or how much they need,”
The fact that the majority of Americans are unwilling to pay a realistic amount to get professional advice is troubling.”