In many ways, Millennials are the perfect storm of opportunity for life insurance agents and advisors. The largest generation in American history also represents more than one-third of the workforce. With the Boomer generation at or near retirement age, and Gen-Xers turning that corner, advisors would be wise to start paying more attention to Millennials.
When it comes to life insurance products, the Millennial market is wide open territory. According the 2022 Insurance Barometer Study, 44% of Millennials reported a sense of financial insecurity. This, of course, is a void that can be filled by life insurance. Roughly the same percentage of Millennials have said the COVID-19 pandemic have made them more likely to buy life insurance. In fact, a quarter of first-time policy owners since the pandemic were Millennials.
Even before the pandemic, Millennials’ attitudes toward life insurance started taking a turn, with 79% stating they recognized the value of life insurance. That’s compared to 60% of Boomers and Gen-Xers. Despite previous stereotypes, Millennials are thinking about the big picture. And that picture includes LI coverage.
Tapping into the Millennial market requires an understanding of their values, perspectives, needs, and, more importantly, challenges. (Data source: Pew Research Center, unless otherwise noted.)
While Millennials struggle with student debt and reduced earning power now, things will likely improve over time. With the increasing value of college education, young graduates often see their student loans as an investment in their future. This suggests a willingness on their part to play the long game if they can be confident it will pay off in the end. Consider applying this logic to your strategy. Start with what they can afford now and outline how that can be used as a stepping stone to better things down the road.
Millennials can be skeptical when it comes to business and finance-related matters. This stems from a lack of understanding about the role advisors can play in their lives. At the same time, their optimism and desire to maintain a stable and successful household present an opportunity for advisors to ease that skepticism. A transparent, ethical, and mentoring approach will go a long way toward establishing credibility. Make a personal connection to show that you care as much about their family’s well-being as they do. Work with them, rather than sell to them.
While Millennials are fully immersed in the digital world, they also value consumer experience. Part of that experience includes focusing on more than just the LI products. Millennials are looking for a holistic approach that speaks to health, financial, and wellness needs. Agents who can provide that experience will be more likely to close the deal.
Expect Millennials to come in armed with whatever knowledge about life insurance they were able to gain online, from eBooks, and other digital content. However, they’ll need you to fill in the blanks for them. Also keep in mind that members of this tech-savvy generation might respond well to incentive-based wellness programs, such as those that provide wearable gadgets to policyholders.
No matter what generation you’re marketing to, IAMS has the resources you need. For Life Insurance Awareness Month, we are offering a robust sales package to agents and advisors. Our complimentary 2022 LIAM Sales Kit includes:
Click below or call (800) 255-5055 to request your complimentary 2022 LIAM Sales Kit.