DefinePK

Abstract

Social marketing is very central in marketing life insurance products since business goals are correlated with the community welfare and long-term objectives of sustainable development. Life insurance has a new face and can be viewed as a vehicle of social security, financial inclusion, and long-term stability of societies. Using concepts of social marketing would allow insurers to generate awareness of the worth of life insurance not only as a marketable entity but as a social good that helps to stabilize families, eliminate poverty, and ensure that families of differing ages maintain stability in their financial resources. Social marketing initiatives are focused on behavior change, trust development, and culturally appropriate communication and can help alleviate the misperceptions, lack of awareness, and aversion normally linked to insurance adoption in developing economies. Moreover, the incorporation of life insurance into the theory of sustainable development will allow insurers to contribute to the UN Sustainable Development Goals, as well as Goals 10 (reducing inequalities), 8 (decent work/economic growth), and 16 (building resilient communities). Marketing life insurance with a societal benefits approach- including financial literacy campaigns, location-based outreach, and cooperating with government institutions- allows people to view insurance as a means of either financial security or empowerment beyond a discretionary cost. Apart from boosting market penetration, this will also drive the role of financial institutions towards ensuring inclusive growth. Therefore, social marketing plays the role of an intermediary between the insurers and the communities to create trust, popularize the adoption of life insurance as an engine of financial stability, and play a significant role in sustainable development.