Millennials…who are they? According to Merriam-Webster Dictionary they are a generational group born between the early 1980s and late 1990s. There are several stereotypes…good and bad—true and untrue, regarding this age group. There have been many studies conducted to try to understand the best ways to market to millennials. To learn more about their buying habits and “wants” relative to life insurance, Life Happens® and LIMRA included millennials in their annual Insurance Barometer Study last year.1 The study identified millennials as those born between 1981 and 1998 (between the ages of 18-26 at the time of the survey.) The survey also interviewed groups characterized as seniors, baby boomers, and generation X. Here is what the survey revealed:
Only 52% of millennials have life insurance. About 23% of millennials who have life insurance have it through their employer. One in four admit that they don’t have enough life insurance and one in 10 don’t even know if they have coverage.
Reasons Why Millennials Don’t Purchase Life Insurance
Nearly two thirds of all respondents in the survey said they had other financial priorities as a reason why they did not buy life insurance. This reasoning was relatively high among millennials.
Here are millennial responses compared to all responded as to why they don’t purchase insurance:
Among Millennials Among All Groups
Cost of Living Expenses 61% 62%
(rent, mortgage, groceries, electricity etc.)
Additional Living Expenses 57% 50%
(cable, internet, cell phones etc.)
Building Savings Accounts or Emergency Funds 46% 39%
Managing Accumulated Debts (credit cards, etc.) 40% 38%
Saving for Retirement 37% 34%
Health Expenses 30% 32%
Day-to-Day Recreational Activities 38% 26%
Saving or paying for a new car, boat or home 37% 25%
Saving or paying for college or student loans 32% 21%
Vacations 23% 17%
- Almost half of millennials indicated that lack of approach by life insurance agents is as contributing factors to why they don’t have any life insurance or more life insurance.
- 42 percent believe they would not qualify for affordable life insurance coverage.
- “Millennials overestimate the cost of life insurance. Four in 10 believe a term-life policy costs more than $1,000 a year (which is more than five times the actual cost),” stated the 2017 Barometer Study.
Do You Have a Marketing Strategy for Millennials?
So what do all these statistics reveal? You need to consider a marketing strategy targeted to millennials. Hopefully, these statistics can help develop a strategy that addresses their concerns and needs. Social media can be an excellent sales tool for millennials, but not the only tool.
According to the Barometer Study, online purchase attempts have tripled since the study began in 2011. As expected, the largest majority of millennials, 64% have visited a website of a life insurance company and have sought information about live insurance online. Forty-five percent have purchased or attempted to purchase life insurance online.
Millennials Would LOVE to Hear from YOU
However, the survey also found that among millennials 68% want the ability to chat with a person. In addition, 79% want the purchase easy to understand, and 67% want the ability to pick insurance from categories. So, while millennials use the internet and social media, they also want personal contact. Bottom line: talk with millennials about life insurance!
1Life Happens® , is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures. Life Happens does not endorse any insurance product or agent.
2 The 2017 Barometer Study conducted by Life Happens® and LIMRA tracks the perceptions, attitudes and behaviors of consumers in the United States. The study looks at financial concerns of various groups, how they think and how they act in regards to financial products with an emphasis on life insurance. http://advisor.simplicitymarketing.com/wpcontent/uploads/2017/06/report_Barometer_Study_2017.pdf
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES