Millennials may not think they need life insurance, but they do.
At 80-million strong, millennials are a major demographicfor life insurance agents — but only if they can persuade the country’s largest living generation to buy life policies. Since most millennials are just starting their careers and have largely put off marriage and homeownership until much later in their 20s, that’s not an easy task.
Millennials hold many misconceptions about life insurance, as well. In the spring, LIMRA reported more than 40% of millennials believe they don’t qualify for life insurance, a finding that led the organization’s Senior Research Director James Scanlon to conclude that “inaccurate perceptions” prevent many millennials from purchasing a life policy.
Insurance agents can change those perceptions and convince millennials that they need life coverage, either now or in the not-so-distant future. Here are five tips that can help you persuade your younger prospects.
You’re Renting Now, But… Even if your millennial clients aren’t quite ready for a life insurance sales pitch at this time, you can lay the groundwork for a future discussion by selling them other lines of insurance, such as renters insurance. They won’t be renters forever, so when they get married and buy a house, you’ll be a familiar resource as they explore life insurance.
About Those Student Loans… Many millennials carry student loans. Unlike federal student loans, private student loans remain in force after the borrower dies, meaning a co-signer is obligated to pay the balance. A relatively inexpensive term life policy that coincides with the loan relieves the co-signer — who could be the borrower’s spouse — of that financial obligation.
For the Cost of a Latte… Most consumers, including millennials, assume that life insurance is too expensive for them. Yet a term life policy covers the policyholder while they are growing their business, building their career, and raising their family at a rather affordable price. A report from CNBC reveals that a 20-year term life policy for a 30-year-old woman with a payout of $500,000 factors out to a monthly premium of $18 to $28, about the same price as a week’s worth of coffee.
Let’s Talk About an Investment Opportunity… Millennials are known as savers, so instead of pitching life insurance as financial protection for dependents upon the policyholder’s death, stress that a whole life policy can help them build their wealth. Over time, a portion of whole life premiums accrue in a “cash value” account the policyholder can draw from to pay for a home or other major asset — an appealing feature to cost-conscious Millennials.
Text Me… According to one study, nearly 60% of tech-savvy millennials search social media for information. Similarly, a Think With Google study found that more than half of millennials overlook companies that can’t be found through an online search or have poor reviews. When you pitch your millennial prospects and clients, make sure your agency’s website is optimized for search engines, post content relevant to younger clients and prospects, and use short videos and digital sales tools like online cost estimators to educate them on the value of a policy. Once you make contact, chatbots, texting, and apps can help you continue the conversation.
Although many Millennials may not be ready to buy life insurance now, this group is far too large to ignore. Start making inroads with this generation now and it will definitely pay off later.