Two recent studies by J.D. Power, one on individual life insurance and the other on individual annuities, found that overall, customer satisfaction with each of these products is improving. This is a big turnaround from recent years in which customer satisfaction and engagement decreased the longer an individual held a policy.
So what changed? Digital interaction. The studies showed that more customers use digital tools to monitor policy updates and changes and communicate with local agents and financial advisers. Nearly three-fourths, or 72%, of annuity customers regularly interact with their provider digitally via website, email, chat, text or mobile app.
Other key findings include:
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- The number of life insurance customers purchasing their policies for financial and final planning reasons increased to 39% in 2023 from 30% in 2022.
- Customer satisfaction with annuity products is 800 (on a 1,000-point scale) this year, a significant 11-point increase from 2022, largely driven by increased digital engagement.
- State Farm ranks highest among individual life insurance providers for a fourth consecutive year, with a score of 843. Nationwide (840) ranks second and MassMutual (809) ranks third.
- F&G (formerly Fidelity & Guaranty Life) ranks highest among individual annuity providers, scoring 843. MassMutual (827) ranks second and Nationwide (826) ranks third.
"Sales of life insurance enjoyed a brief surge in popularity during the height of the pandemic, while sales of annuities have more recently soared,” said Breanne Armstrong, director of insurance intelligence at J.D. Power. “Now, with more customers than ever engaging with life insurance and annuity providers more frequently via digital channels, we’re starting to see a real evolution.”
Should you buy life insurance when you're young?
It’s safe to say, one of the last things on your mind is buying life insurance when you’re young and healthy, But if you’re between the ages of 20 and 40, now could actually be the best time to invest in your future.
Besides, there is usually less chance of being turned down for a life insurance policy when you’re young, and policies are typically more affordable than when you’re older. In fact, the monthly payment on a 30-year term life insurance policy may cost less than a few Uber rides or dinner at your favorite restaurant, and the protection means one less thing your family needs to worry about.
In much the same way, a retirement plan such as an annuity can provide reliable income when you need it and can often bridge the gap between your accumulated savings and Social Security or other sources of retirement income. Plus, annuities grow tax-deferred, which means Interest earned in a deferred annuity is not taxed until withdrawn.
About the findings
J.D. Power's 2023 U.S. Individual Life Insurance Study measured overall customer satisfaction with the largest individual life insurance companies in the U.S. The study is based on responses from 5,588 individual life insurance customers. The U.S. Individual Annuity Study measured overall customer satisfaction with the largest annuity companies in the U. S. from 3,579 individual annuity customers. Each study was conducted between May and July 2023.
Related Content
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Why I'm Keeping My Amex Gold Card Even With a Higher Annual FeeAmerican Express increased its Gold Card fee, starting October 1, but new perks are here, too. Here's the value one editor sees in the card.
-
Planning a Summer Road Trip? Here's How to Cut CostsDrivers expect to spend about $2 per mile on average, or about $1,000 on road trips this summer, according to an Experian survey.
-
Kiplinger Readers' Choice Awards 2024: Auto Insurance CompaniesKiplinger Readers' Choice Awards The results of the Kiplinger Readers’ Choice Awards' best auto insurance company category. Our awards celebrate the very best products and services in personal finance.
-
Life Insurance Beneficiary: What It Is and How It WorksHave you designated your life insurance beneficiary? Take just a moment now to protect your legacy.
-
How Does a Car Insurance Deductible Work?Choosing the right car insurance deductible can save you real money. Know your options before you sign a policy.
-
Eight Reasons Why Your Home Insurance Costs Are SurgingHome insurance costs are skyrocketing, with specific factors driving the surge. Here's how to whittle down your premium.
-
Six Surprising Things Home Insurance Doesn't CoverHome insurance protects you from a lot, but not from damage caused by floods, earthquakes, sinkholes, water leaks and a number of other risks.
-
What Is Comprehensive Auto Insurance and What Does It Cover?insurance This grab bag of coverages can protect you and your vehicle from theft, fire and forces of nature.
