One of the ironies of life insurance is that the first idea it conjures in most minds is death. That’s because many consumers are only aware of one of life insurance’s goals: to cover final expenses in the inevitable event of someone’s death. It makes sense, then, that younger people wouldn’t feel the same pressure to invest in life insurance as their parents and grandparents.
Younger consumers tend not to think about themselves as mortal (even though we all logically know we are). Many have probably never considered who would pay for their final expenses should they pass away at an all-too-early phase of life, nor have they considered what impact such an expense might have on their loved ones. It’s not that they don’t care. It’s that death isn’t quite on their radar yet.
Why are they given a pass from all this morbid death stuff? Younger consumers have bigger fish to fry, thank you very much. You may ask yourself: What could be bigger than shuffling off your mortal coil? For people buried under college debt, personal debt, and the vagaries of a volatile economy - a lot. It’s not self-centeredness that causes Millennials to neglect life insurance, it’s more immediate problems.
To make matters worse, much of the conventional wisdom that guided older consumers either no longer applies or hasn’t been passed on to younger generations. Hence all of the “adulting” classes that garner so much attention in the media and ridicule from elders. Home economics, which once gave students insights into all of the little chores that make up adulthood, have been cut from many educational programs, leaving younger people adrift when they have to begin making financial decisions for themselves. While this isn’t great for the kids, it does provide a window of opportunity for forward-thinking agencies.
When it comes right down to it, there are many reasons that life insurance can be a smart investment for younger consumers. If agents understand what their prospects are concerned about, they can reframe the value of life insurance to better position their products for Millennials.
Debt is going to be a sensitive issue for most college graduates who feel like they’ll be paying off their loans forever. It’s one of the drivers behind fewer Millennials purchasing homes and more Millennials putting off marriage. What if you could reassure these prospects that their kids don’t have to be stuck with the same outsized debts that have burdened them?
What about a comfortable retirement? Many younger consumers have abandoned all hope of retirement. That makes retirement an effective inroad for talking with Millennials about financial management opportunities created by life insurance.
Whether we’re talking about debt repayment, potential retirement savings, or any other number of financial issues relevant to Millennials - they’re falling behind in terms of planning for their futures. That should be a concern for us all.
For insurance agencies, it’s also an opportunity. Your independent agency can take advantage of this window to address the concerns that are on your younger prospects’ minds, to offer them guidance in making sound financial investments, and remind them that they’ll want their own kids to have the same opportunity to put off thinking about life insurance for a little while longer when their time comes.