In
this underserved segment, only 16% own individual life insurance and about a
third are likely to purchase it. In a market historically driven by the
business of an older, wealthier clientele, today's financial advisers have a
unique opportunity to provide policies to a generation that tweets, texts,
blogs and looks online for key information and purchases to complement their
lifestyle.
For
decades, insurance companies cut their teeth selling products with lengthy
underwriting and application processes, carving out a niche among old guard
policy holders. Advisers must find a way to adapt to the shifting marketplace,
reaching younger generations through new techniques, products and processes.
Millennials are the nation's largest living generation, having
surpassed the population of baby boomers. They comprise more than a quarter of
the nation's population. Their expectations are driven largely by experiences
with other industries and by the way they gather information, with an
increasing reliance on mobile and online technology. Their preferences for
working with financial institutions are no exception. Fifty-six percent of
millennials would rather use an ATM, personal computer, telephone or mail than
sit with a financial representative.
Millennials are uprooting the way our world does business,
shaking up the status quo and steering the way many companies operate. And like
most Americans, they are underinsured. While 41% of millennials agree they
should put more money into life insurance, one in two say paying off short-term
debt is more important at this stage of life.
New life insurance products and processes are putting advisers
in a unique position to reframe their conversation with millennials — helping
younger generations understand and appreciate the need for life insurance and
how it can help to protect their assets and loved ones.
Today's options are more streamlined, varied and flexible,
offering choice to a generation that values technology, simplicity and speed.
Advancements in automation, delivery, underwriting and technology are helping
advisers reach younger policy owners in a fraction of the time, providing them
with an experience more consistent with their expectations. Insurers now are
able to turn a policy around in just a few days.
Term products offer a fully electronic and efficient transaction
process, from application to policy delivery. Possibilities for lab-free
underwriting have also become a reality among an audience seeking a less
invasive, faster and more simplified experience. And options with lower face
amounts are providing millennials with attainable coverage at a time where they
may be facing competing financial priorities.
The most progressive agents and agencies are getting into the
game — turning to technology and alternative forms of communication to reach a
younger client base. Those who are successful have shifted their way of
thinking — finding value in the size of the market, and not necessarily the
size of the sale. For a generation that thinks mostly about life rather than
death, life insurance can be a challenging conversation. Agents are moving away
from traditional industry terminology and centering their conversations on
life, living benefits and value.
Advisers have found a way to tap into this younger audience and
spark conversation surrounding a product that is anything but racy and errs on
the side of practical. Building a business one case at a time, advisers are
helping millennials leverage market innovations to find a policy right for
them. With a toolbox at their disposal, success is attainable, and the early
adopters stand to win. Automation, digitization, developing an online presence
and fostering a multigenerational business are just some of the tools today's
life insurance agents have used to find a sweet spot in this marketplace.
To adapt to the changing marketplace and growing presence of
younger clientele seeking life insurance policies, today's advisers should
resist the current, roll up their sleeves and get out their smart phones. Going
down-market to find success can translate into a more lucrative, market-driven
business — one that will help today's younger generations prepare for a more
secure financial future.
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