Estate Planning Transforms Life Insurance—Building Brand Loyalty, Trust, and Sales

Embedding estate planning into life insurance is a game-changer, strengthening client relationships and setting brands apart in a crowded market. Here’s why it matters:

Drives Purchase Decisions: 45% of customers say estate planning bundled with life insurance positively impacts their buying decision.

Builds Loyalty: 47% would be more loyal to brands that offer estate planning, fostering long-term customer relationships.

Creates Peace of Mind: 78% associate estate planning with security and peace of mind, reinforcing trust in their insurance provider.

For life insurers, offering estate planning as a bundled service not only aligns with their mission but also provides a strategic advantage that strongly connects with customers.

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For life insurance providers looking to strengthen client relationships and differentiate themselves in a competitive market, offering estate planning as a bundled service is a golden opportunity. GoodTrust conducted a survey of individuals ages 45-85 and here’s how the numbers reveal its impact:

A Powerful Market Advantage

A striking 66% of customers would be more likely to choose a life insurance brand that offered estate planning at no additional cost. This means that, beyond providing protection, brands could gain a competitive edge by offering a service that aligns with the mission of life insurance: protecting one’s legacy. Additionally, 54% would be willing to switch providers to access estate planning as a value-added benefit, signaling how strongly customers value this service.

Driving Purchase Decisions

For many, estate planning has become a “make or break” factor. 45% say that having estate planning bundled with life insurance would significantly influence their purchasing decision. This preference points to a growing expectation in the life insurance space—customers now seek personalized, all-in-one solutions that extend beyond a standard policy. By meeting this demand, life insurers can position themselves as caring partners who truly go the extra mile for their customers, demonstrating a commitment to securing not only financial protection but a lasting legacy for their clients.

Enhancing Customer Loyalty and Retention

The numbers highlight that estate planning isn’t just a beneficial add-on; it cultivates loyalty. 47% of respondents stated they’d be more loyal to a brand that offered estate planning. For life insurers, loyalty translates into long-term revenue stability, reduced churn, and opportunities to upsell additional products. This is a win-win for both provider and policyholder, with the added benefit of potentially lowering marketing and acquisition costs over time.

Creating Peace of Mind

For over half of respondents—56%—having access to estate planning tools through their life insurance brings a greater sense of security. In an industry built on providing peace of mind, this is a strategic advantage for life insurers. Adding estate planning as a benefit aligns with 78% of individuals who associate peace of mind with estate planning. This added layer of support not only fulfills customer expectations but also strengthens relationships, demonstrating a genuine commitment to their long-term well-being and reinforcing trust in the brand.

A Standard for the Future of Life Insurance

The sentiment is clear: 59% believe estate planning should be a standard part of life insurance offerings. As expectations shift, the life insurance brands that proactively incorporate estate planning will be viewed as leaders in modernizing the industry. By setting a new standard, these companies can attract customers who value comprehensive planning and may even consider paying more for policies that include estate planning benefits, with 45% of respondents willing to do so.

The Takeaway: A Strategic Differentiator

The statistics tell a clear story—estate planning is no longer a "nice to have." It’s an invaluable differentiator that can elevate a life insurance brand in the eyes of customers. Providers that add estate planning can not only enhance their competitive standing but also build a loyal, secure customer base ready to invest in the brand that protects their full legacy. Embracing estate planning isn’t just about policy enhancement; it’s about redefining the future of life insurance with value that resonates on a personal level with today’s consumers.

To learn more about how Estate Planning can impact your insurance product, email [email protected] or click here.

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Survey Details:

Consumer Survey on Estate Planning as an Embedded Benefit in Life Insurance

Overview: GoodTrust recently conducted a targeted survey to gain insight into the importance of estate planning as an embedded benefit within life insurance offerings. This survey is designed to provide valuable data on consumer preferences and needs regarding estate planning, particularly in the context of life insurance as a vehicle for legacy planning and financial security.

Survey Parameters:

• Participant Demographics: 173 respondents aged 45-85, each of whom has at least one child.

• Objective: To measure the importance and perceived value of estate planning when offered as a an embedded feature within life insurance policies.

• Directional results were conducted via an agile research platform powered by DISQO.