MILLENNIALS AND INSURANCE
One of the toughest struggles the insurance industry faces today is how to sell to Millennials. Millennials are a generation notorious for making headlines for a perceived lack of loyalty to companies and brands as well as changing the game when it comes to communication methods. This group of people between 18 and 34 years old, are the largest generation in history and are not as interested in traditional customs practiced by past generations. Millennials play a strong role in shaping the economy and the way insurance industries market their product. They are the most underinsured generation around today.
Check it out: Millennials are Redefining Financial Services (Video)
So why is it that Millennials aren’t interested in buying insurance? Is it because they’re uninformed or uneducated about the topic? Or because they feel like it’s unnecessary? The honest answer is Millennials aren’t purchasing insurance because they would prefer to spend their money on other things such as travel and experiences, as well as innovative technologies such as smartphones. Makes more sense, right? Odds are you’ll see more young Americans with the newest iPhone than with health or life insurance.
Millennials are well aware that insurance is important, but the majority believe that insurance is complicated and expensive. 77% understand that choosing to not have insurance is risky. In order to afford quality insurance, they know they’ll have to make sacrifices that will affect their personal habits and lifestyles such as smartphones, going out, TV streaming services, etc. Members of older generations may see these things as frivolous while insurance is much more important not only for yourself but the people in your life. The gap in generations is wider and insurance is falling through the cracks.
Check it out: Millennials & Health Insurance (Infographic)
Millennials feel invincible. While many people are fortunate enough to be on their parent’s insurance plans until they’re 26 years old, not all feel that sense of security. Those who are not on a plan with their parents still feel that they’re young and healthy enough to not necessarily need to pay for insurance they may never use.
So, what can you do as an insurance agent to sell a product with high value to a customer who is not interested? It begins with understanding who the customer is. What are their values? We know that millennials value technology and social media. Use those tools to your advantage to gain their attention. We’ve established that most Millennials have smartphones, so use the mobile platform to market your product. Make sure your website is mobile friendly, well organized, and simple. It’s very important that the website is appealing so they are intrigued and curious to learn more. Another thing to think about, is the fact that more and more Millennials are choosing to rent homes instead of buy them. As an insurance agency, maybe the best thing to do would be offer better and more renter’s insurance options to target this group
What then are the reasons Millennials should really consider purchasing insurance? There’s several valid reasons that they possible haven’t given too much thought.
1. IT'S CHEAPER
The younger you are, the less you’ll pay for a life insurance policy. While you’re young and “healthy”, you’re less of a liability to providers, until you enter your late 30s or 40s.
2. FUNERALS ARE EXPENSIVE
Did you know that the average funeral in America costs between $6,000 and $10,000? Even the smallest life insurance policy can put a big dent in what you pay out of pocket for a funeral.
3. YOU HAVE KIDS
While most Millennials are waiting until their 30s to have children, those who have gotten an earlier start should make sure they’re saving for the little ones in a worst-case scenario.
4. YOUR EMPLOYER'S INSURANCE MAY NOT BE ENOUGH
Many Millennials are lucky enough to have a good job that offers insurance and even a life insurance policy, but even adding another policy on the side can be a smart move. In the event you got really ill and couldn’t work or you get laid off, a second policy would be there to catch you.
5. DON'T STICK YOUR FAMILY WITH DEBT IF YOU CAN HELP IT
Student loan debt is real and a real burden. If something happened, then your family would be saddled with that debt. Buying a good enough life insurance plan can often take care of those issues.
For more information about Millennials and Insurance, and Insurance Technology, check out our Insurance Technology Pillar Page