Get an (Insured) Life

Over the hill. Getting long in the tooth. Of a certain age. Growing older is something we all share as part of the human experience. It’s inevitable, much like the many life insurance promotions that start to show up in our inboxes and social media feeds when we enter our 40s.

Although consumers of every age can benefit from a customized and comprehensive life insurance policy, younger generations, such as millennials and members of Generation Z, have certain advantages. They’re generally in good health and can easily qualify since they’re a safe bet for most carriers. They will also typically pay a lower monthly premium – often under $50 per month. [1] Younger consumers can also use the cash value component of most whole life and universal life insurance programs to help them build savings over the life of their policy, and we all know that the earlier we start to save, the better the compounded returns.

For insurers, millennials currently represent the largest market opportunity – nearly half (47%) of millennials (34 million adults) say they need (or need more) life insurance.[2] And attracting – and onboarding – customers when they’re younger means more premium payments over a longer period of time.

The wrench in this otherwise mutually beneficial relationship is that many millennials and Gen Z’ers freely admit that they don’t understand insurance and are uncertain as to what and how much they should purchase. LIMRA discovered that four in 10 members of these cohorts have little confidence in their knowledge about life insurance options, with more than a quarter admitting that they haven’t purchased any coverage at all.[3]

So what can insurers do to encourage younger consumers to research and retain life insurance, especially when time is on their side? The below strategies can help:

• Establish an engaging, user-friendly online presence. Insurers can appeal to digitally inclined millennials and Gen Z’ers by developing a distinctive online presence, as well as personalized marketing strategies to appeal to generations that are often disengaged from mass advertising and require a more tailored and convincing value proposition. Coupled with simple purchasing options and continued engagement that is effortless, intuitive, and informative should result in higher Net Promoter Scores, word of mouth recommendations, and greater coverage to reduce the protection gap.
• Offer niche supplemental insurance options. Niche supplemental life insurance plans and innovative options tailored to younger cohorts, including estate planning services, secure online apps for financial and personal document storage, and guided meditation sessions, therapy libraries., and online digital fitness classes are great incentives [4]
• Feature diverse and inclusive messaging. Millennials and members of Gen Z are some of the most racially and ethnically diverse generations in history. To reach them, insurers need to have the messaging and imagery that reflects today’s multi-ethnic reality.[5]

 The Final Word

The good news for insurers is that millennials and Gen Z’ers aren’t “lost” generations when it comes to purchasing life insurance. In today’s digital world, insurers can easily implement online, targeted marketing strategies to attract these cohorts, and to help dispel the myth that younger generations don’t need to concern themselves with life insurance.

[1] “Why young people should buy life insurance now,” CBS News, February 2023

[2] “It’s Time to Help Get More Millennials Insured,” LIMRA, July 2022

[3] “LIMRA: Younger Adults Seek a Different Buying Experience for Life Insurance,” LIMRA, July 2023

[4] “9 Best Life Insurance Companies for Millennials and Young Adults,” MoneyCrashers, May 2023

[5] Op. Cit., LIMRA, July 2023

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