Too Young to Think About Life Insurance?

We have been talking with reps a lot about their younger clients and what is the right approach. The increased amount of youth born in the period of 1979-1994, known as Generation Y, today has gotten to the point where some of its representatives have started thinking about insuring their lives. And it’s time for us as insurance professionals to explain the benefits and principles of life insurance to this growing group of younger adults.

The time to get better at this in now. One study on insurance-consciousness of this group of people has indicated that Generation Y is responsible and willing to know more about insurance products and their benefits. Moreover, many Generation Y representatives are willing to insure their life shortly, which makes them more active than previous generations from the insurance perspective. An online poll has shown that 48% of Gen Y participants are willing to insure their life in three years, while 20% are looking forward to doing it within the current year.

Besides, a recent analysis has shown that these young people also have the financial abilities to insure their life properly. By 2012 the annual estimated gross income of Generation Y representatives has exceeded $3.5 trillion, passing that of baby boomers’ by $500 billion.

But it’s not right to assume that the financial abilities of these young adults will necessarily lead to purchase of life insurance product by Generation Y. However, another study has indicated that this age group becomes very interested in insurance products when provided with the basic details such as price and terms of a simple policy. Moreover, this age group is more willing to shop around and understand the difference between various features and policy types, which makes them more conscious insurance buyers than their older peers.

But sometimes Generation Y doesn’t have the proper life insurance education to make firm long-term decisions, which are needed in this type of purchases. It was observed that many young people don’t clearly understand the benefits of purchasing term, whole or universal life insurance products, and this makes them want to learn more. However, almost a half of respondents have told that they do not know where to get adequate and unbiased information from, as there are too many source both online and in real world that are advertising specific insurance providers or services.

What’s interesting about Generation Y is that they want to know everything about the product they are buying, and if that’s a sophisticated product like insurance, they want to be in full control of their coverage and benefits. They tend to not believe the ads and won’t buy the very first policy they are offered with.

Some may think that it’s too early for Generation Y to think about insuring their lives, however it’s not true. Many representatives of this generation are already looking forward to changing their marital status and that’s where having your life insured really counts. Besides, while being young and healthy it’s easier to get insured for a lower price and with better terms than at a later stage of your life.

Our training is designed to help you explain the different types of insurance so that Generation Y has the information they need to make a decision. But not just information, we can help you help them understand what it is they need and why. Keep it simple, but be thorough. If you can’t explain it on a “yellow-pad” then it is too complex. Give us a call and we can get you there. Our clients are never to young to learn about life insurance and our reps are never to old to learn a new pitch.

About Jeffrey Berson

40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".
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