We know for a fact that life insurance is one of the most progressive industries in the world. However, it is not the same for all countries. Some places have a pretty good standing when it comes to life insurance. Meanwhile, with other countries, not so much.
Despite the importance of life insurance, there are just some people who are unable to gain access to such benefits. It’s not just about the individual per se. it mostly has something to do with the place that you live in. Some places aren’t progressive when it comes to life insurance. With that in mind, here are the top 10 states with the least competitive life insurance market.
- South Carolina
- North Dakota
People die every day. As a matter of fact, you never when you or someone you know is going to just pass away all of a sudden. This is the reason why the American government had been worried about the health plan of their citizens. As such, they decided to conduct a study where they were able to garner the details above.
If a state or city is uncompetitive as the life insurance industry is concerned, this can only mean that there aren’t a lot of people who are availing of the services that insurance agents offer.
When it comes to this kind of business, there are only three possibilities as to why the majority of people don’t have life insurance. For one thing, people may not want one. The second theory is that the government may not be allowing this kind of transaction to take place. The third possible reason is that the cost of large group health plan or even individual plans is probably not affordable for some people.
Among the three options, it is quite obvious which one is the most rational. Since we can easily cross out the two theories, we can truly say that the reason some states aren’t as competitive in the life insurance industries compared to everybody else is that progressive states offer multiple options to their prospects. On the other hand, other states are only able to provide the ones that are currently available. In that very sense, there are only a few people who can afford the ones that are there.
Why Is There Lesser Life Insurance Options In Other States?
According to the study, there is a little number of insurers for Americans to choose from. It was said that in one particular metropolitan area a life insurer could get 50 percent patients out of the market. This degree of market power is insufficient and thus most insurance holders don’t really benefit as much as they should from their policies.
With that, insurers are gaining money from their deals but they have a pretty tough time trying to expand their current networks. That’s because the benefits are insufficient whereas the premiums are a bit on the high end.
Some States Have A High Concentrated Market For The Life Insurance Industry
Perhaps, one of the things that affect the high cost of life insurance is the fact that insurers have been only focusing on a particular group of people as their prospects.
With that, not only is life insurance becoming inaccessible to most Americans but it is also not being marketed effectively to the masses.