No one knows what will happen tomorrow. But everyone can be prepared for it.
For more than 175 years, America’s life insurance companies have helped people prepare for the future. Our industry serves 90 million American families, and our guarantees often protect families for generations. We’ve been a source of strength and stability for our customers through the major events in our nation’s history, including World Wars I and II, the Great Depression, the 9-11 attacks, the Flu Epidemic of 1918 and the COVID-19 pandemic.
The pandemic reaffirmed the value of life insurance. Our industry paid out a record $282.3 billion in guaranteed life insurance benefits in 2020-22, and sales spiked to 30-year highs. In fact, total life insurance new annualized premium set a new sales record for the third straight year, according to LIMRA’s U.S. Life Insurance Sales Survey.
Families with life insurance can weather the economic shock that hits after an unexpected death. The last thing a grieving family needs is financial hardship. Life insurance provides crucial resources when families need them most.
In addition to providing cash after the loss of a loved one, some life insurance policies can provide a vital source of funds for families experiencing economic hardship. With permanent insurance, policyholders can borrow against their policy’s cash value. This source of cash can be tapped by families to meet any need, including an unexpected job loss or an unplanned emergency expense.
Life insurers are engaged with their local communities. As a member of ACLI’s Forum 500 Board of Governors and President and CEO of National Farm Life Insurance I know the important role small to mid-sized insurance companies play in the lives of our customers and agents. As an example, our company retains a hyperfocus on rural and suburban communities and actively supports efforts, events, and activities central to those communities.
Our independent agents know the importance of relationships with their clientele and live in those same communities. They sit at kitchen tables with families they serve, and they support the local schools, churches, charities, and events in their service areas. This granular and authentic approach generates value for the policyholder and ensures security for their family because they know and trust their agent.
At the same time, life insurers continue to serve as a vital source of investment capital. Our industry invests $7.5 trillion in America’s economy, primarily through bond investments that drive economic and job growth across the country. This is long-term, stable financing that local and state governments, in addition to small and large businesses, can count on in good times and in bad.
The message for lawmakers in all 50 states and the nation’s capital is unmistakable: America can rely on the life insurance industry’s stability and strength. We support families in need. We ensure employers can provide for their workers. We invest in communities. And we work with policymakers to relieve Americans’ financial concerns.
America’s life insurers provide certainty for an uncertain world.
Dr. Kyle W. McGregor is President and CEO of National Farm Life Insurance in Fort Worth, Texas.
