How Can Insurers Cater to Millennials for Life Insurance?
February 24, 2022
February 24, 2022: Since coming of age as a prime demographic of consumers, millennials have earned a reputation for being remarkably difficult to market to. This became apparent throughout the 2010s as a rash of sensational articles declared the death of various industries at the hands of millennials. Millennials killed movie theaters, casual dining chains, cruises, and a swath of other commercial offerings. As one article articulated, though, these “deaths” were not reflective of millennials’ discerning tastes but rather their limited finances. Still, marketing to millennials remains a challenge — especially when the product in question is life insurance. Read on to learn how millennials are changing the life insurance game.
Millennials Are Digital Natives
In the last few decades, the insurance industry has seen a technological revolution, leading to innovations such as telematics and improvements in accessibility. Many of these changes might be attributable to millennials, who are notable for being the first generation of digital natives. As millennials take digital tools and resources for granted, the insurance industry has been forced to stay ahead, thus ushering in an era of user-friendly insurance tools such as online claim management, chat customer service, and mobile device applications.
Each Millennial Is Individual
Yet another unique feature of the millennial generation is each member’s own unique identity. Unlike former generations who shared many uniform interests and values, millennials maintain wildly unique and disparate identities, making it difficult to identify common points of interest. This has led many insurance companies to hone in on individualized policies and services, though, abandoning a one-size-fits-all model of coverage in favor of uniquely designed policies. Many customers appreciate this individualized approach.
Millennials Are Risk-Averse
Surprisingly, millennials are known as one of the most risk-averse generations in recent history. This means that only a fraction of millennials are investing and spending their cash. It also means that they may view expenditures such as life insurance as risky, too. It is becoming increasingly apparent, though, that many millennials needing life insurance are motivated by seemingly low-risk policies. When the potential reward outweighs the risk of investment, millennials may be persuaded to invest in a life insurance policy.
Budgets Rule Millennials
Unsurprisingly, millennials’ relationship with life insurance comes down to financial commitment. As a financially disadvantaged and risk-averse generation, it’s no wonder why many millennials are hesitant to invest in a life insurance policy. Millennials should know, though, that they are likely to get the best rates if they commit to a policy when they are young instead of waiting. Term life insurance policies can offer a budget-friendly option, too, that is affordable for nearly any level of income. Millennials who want to protect their future should find an affordable way to invest in life insurance.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.