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. Of the 31% of consumers who stated they are more likely to buy life insurance because of the COVID-19 pandemic, 45% of them were Millennials. More Millennials bought life insurance for the first time in 2020 than any other generation. According to the 2021 Insurance Barometer Study, 24% of first-time policy owners from 2020 are Millennials.
Even before the pandemic, Millennial’s 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.)
Education & Employment
- Roughly 40% of Millennials (aged 25-39) have earned a bachelor’s degree or higher, making Millennials the most highly educated generation in history.
- Pre-COVID unemployment rates among Millennial college graduates are significantly lower than those with only a high school diploma (3.8% vs. 12.2%).
- Millennials are more likely than Gen-Xers to stay with the same employer for 13 months or more (63.4% vs. 59.9%).
- The median household income for Millennials is $72,500 (second only to Gen-X households).
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.
Values, Priorities & Perspectives
- Millennials are more willing to share personal information than other generations. They also want easy access to their data (policy info, medical records, bank statements, etc.) (Life Health).
- Overall, Millennials are most likely to need information and education about life insurance, along with personal finances, taxes, budgeting, and mortgages (Life Health, LIRMA).
- More than 80% rank family as their top priority (52% said “being a good parent” and 30% listed “successful marriage” as most important) versus 15% who said “having a high-paying career”).
- 31% say they currently earn enough money, while 88% feel confident they will in the future.
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.
Making the Connection
- Millennials are the first “born digital” generation, with 75% saying new technology makes life easier.
- 2020 has seen digital sales go up by as much as 50%, with agent-driven sales decreasing by the same amount (Life Health).
- Nearly 50% of Millennials are more inclined to buy a policy using simplified underwriting (LIMRA).
- One-third of Millennials will turn to social media for recommendations on a financial professional. 43% will rely on Facebook, 33% use LinkedIn, and 31% use YouTube for research (LIMRA).
- 67% say it’s important to meet with a financial advisor in-person (Center for Generational Kinetics).
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 2021 LIAM Sales Kit includes:
- Consumer-Facing LI Concept Pieces
- LI & Business Solutions Concept Guides
- Checklists, Factfinders, and Prospecting Templates
- Factsheets and Studies
- LIAM Social Cards and Posts
- Life Insurance Email Drip Content
- and More!
Click below or call (800) 255-5055 to request your complimentary 2021 LIAM Sales Kit.