An estimated 41 million Americans say they need life insurance but have not yet been able to buy their coverage.
Despite this awareness among consumers, the Life Insurance Marketing and Research Association estimates a coverage gap of about $12 trillion, with about 50% of millennials planning to buy coverage in the next year. The latent demand for life insurance is not currently equipped by the majority of the financial services industry and being embedded can be a money solution.
Companies need to consider product lines and partnerships to expand the market, create new revenue streams, and provide additional value to their customers. Connecting customers with the products they need through channels that they already know and believe is both a huge income opportunity and a social welfare, providing financial minimalism when the family needs them the most.
The idea of digitally bundling financial products in a packaged offer to a customer is certainly not new – but it is for the life insurance space. To provide products and services through entities that use embedded finance technology and operations infrastructure that may not be financial institutions.
Think of money being embedded, like on-demand shopping; Customers benefit both from the transaction (buying financial security for their family) and the benefits it provides (from the platform they are currently employed with). How Amazon saves shoppers 75 hours a year, bundles life insurance to give customers back their day time and improve their financial health.
The idea of digitally bundling financial products in consumer packaging is certainly not new, but it is in the field of life insurance. Embedded funds use technology and operational infrastructure to deliver goods and services through entities that may not be financial institutions. Think of money being embedded like on-demand shopping.
Customers benefit from the transaction (purchase of family financial security) and the benefits it provides (the platform they are currently using). As a way to save Amazon shoppers 75 hours a year, through life insurance bundling, customers can get back to their day time and improve their financial health. Embedded money will help fill life insurance coverage gap – TechCrunch Source Link Embedded Finance will help fill life insurance coverage gap – TechCrunch.