Alongside the Benefits Selling Expo, there's ameeting tailored for benefit product providers called the VoluntaryEmployee Benefit Board. One of the questions we discussed in abreakout session was something like: “Even though life insurance iscertainly among the best known forms of financial protection,studies show that more than half of all people are underinsured,and more than 30 percent have no life insurance at all. What can wedo as an industry to narrow the gap?”

I admit, I facetiously suggested a federal government mandate,but then we got down to serious discussions. We came up withseveral suggestions, including illustrating why life insurance isimportant through real-life examples; online needs finders andanalysis tools; and informational campaigns to associates inexisting accounts.

One thought is that increased emphasis on life insurance may beneeded just because it's so familiar. (We may take it forgranted.)

Part of the issue, of course, is that unless we ask for it, inour culture we are very resistant to well-intentioned advice.Telling people “you need to consider buying more life insurance” isthe type of advice we ignore. If we all listened to advice of thistype, we would exercise more, eat a healthy diet and drop our badhabits.

One possible method of breaking through thisresistance barrier is to use social benchmarking norms aimed atspecific demographics. Studies have shown that behaviormodification can be successful when social norms are used to helppeople identify themselves with a positively perceived group.

In an article in the Harvard Business Review, author SteveMartin discusses successful uses of social norms in changingbehavior in areas like paying taxes and showing up for medicalappointments.

A variation of this is the way Amazon has famously sold peoplelike me books, movies and music. After I buy an item, I'm alwaysreminded that people like me also bought another similar item.Perhaps our strategy to promote voluntary enrollment in lifeinsurance should focus on how active employees buy life insuranceas well as how their beneficiaries will use the proceeds. Afterall, it's buying behavior we need to influence, not spendingbehavior.

Finally, for the voluntary benefits industry it's worthwhile toaddress this situation. LIMRA's research shows the reasons peopledon't buy life insurance include competing financial priorities andbecause they think they can't afford it. Since voluntary lifeproducts can be readily available—and affordable—at work, we have agreat opportunity to deliver coverage to a market in need.