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Category: Sales · 6 min read

Busting the Myth: Millennials Won’t Buy Life Insurance

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on September 18, 2018

author profile photo

on September 18, 2018

Clients shaking financial professional's hand

You’ve heard it before: Millennials aren’t buying life insurance. In fact, only 52 percent of people born between 1981 and 1996 have life insurance.1 Better to focus your outreach efforts on another group, right? Not so. Millennials’ concerns are different from other groups’, but that doesn’t mean you should ignore this demographic. 

According to Pew Research Center, more than a third of the workforce are millennials (35 percent), which means they’re bringing home a significant and growing portion of the nation’s wages.2   

This presents a unique opportunity. If you can successfully show millennials that they need life insurance, it can open up a whole new business avenue. To do just that, start by addressing the following four concerns.

If you can successfully show millennials that they need life insurance, it can open up a whole new business avenue.

Concern #1: Other Financial Obligations 

According to Life Happens, 80 percent of millennials aren’t buying life insurance because of other obligations, like rent or mortgage, student loan debt, food, and gas.1 Right now, the oldest millennials are in their 30s and the youngest are in their early 20s. They’re graduating college, beginning their careers, settling down, and starting a family. In fact, Millennial Marketing states that 53 percent of millennial households have children.3 Because of this, millennials may not think they have enough extra money to afford life insurance right now. 

Solution: No one likes thinking about the possibility of death, but bringing it up can put things into perspective. If you’re chatting with a millennial with a partner or children, have them consider the possibility that death could derail their ability to pay off or afford all of the above financial obligations. Life insurance is an important safety net to protect loved ones from financial worry, and allows them to continue to afford the necessities. 

 

Concern #2: Too Expensive 

A common misconception is the price of life insurance. Seventy-three percent of millennials said it was too expensive.1 In fact, most thought a life insurance policy would cost them more than $1,000 a year. 

Solution: The answer to this one is simple: it’s not true. In reality, life insurance policies are closer to $160 a year, which is a much more affordable number.1 Making this clear up front and overcoming this myth can make all the difference. 

 

Concern #3: Won’t Qualify for Coverage

Another hurdle to overcome is explaining how qualification works. The same Life Happens study revealed that 43 percent of millennials thought they wouldn’t qualify for life insurance coverage for some reason.1 Part of that has to do with the need to see a doctor or have a medical exam first, and that can scare some clients away. 

Solution: The truth is it’s much easier to qualify for a policy the younger and healthier you are. For millennials, the ideal time to get life insurance is now when they are most likely health problem-free. And, some life insurance doesn’t require you to see a doctor or be medically tested, which can be a plus for many millennials. 

For millennials, the ideal time to get life insurance is now when they are most likely health problem-free.

Concern #4: Haven’t Talked to Anyone About it

Sometimes all it takes to get new business is to take the initiative. Listen to this: 50 percent of millennials say they haven’t been approached about life insurance, and 58 percent simply haven’t gotten around to looking into it.1

Solution: In this particular case, it’s not that millennials don’t want life insurance, it’s that no one has talked to them about purchasing a policy, so they haven’t felt the urgency to get one. This one can be easily fixed. The opportunity is there! All it takes is you reaching out to them. Approach them about getting a life insurance policy. Talk to them about why it’s important. Show them how inexpensive it can be. 

As millennials age and continue to take over the workforce, they will also continue to be viable candidates for life insurance. If you identify and overcome these four concerns up front, you can earn credibility with potential millennial clients, and unlock a new client base for long-term business relationships. 

 

Learn More About how to Sell to Millennials

Brokers International can help you effectively sell and market to millennials. Learn more in our Sales Builder section, or by contacting us today. 

 

Sources:

1. Life Happens. “Here’s Why Millennials Aren’t Buying Life Insurance (and why they’re wrong).” 2017. Web. https://www.lifehappens.org/blog/heres-why-millennials-arent-buying-life-insurance-and-why-they-are-wrong
2. Pew Research Center. “Millennials are the largest generation in the U.S. labor force.” 2018. Web. http://www.pewresearch.org/fact-tank/2018/04/11/millennials-largest-generation-us-labor-force/ 
3. Millennial Marketing. “Who are Millennials.” 2018. Web. http://www.millennialmarketing.com/who-are-millennials/ 


For Financial Professional use only, not for use with the general public. #18-0639-072319

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Written By

Mark Williams

President and CEO

Mark Williams is the President/CEO of Brokers International. Over his more than 25 years of financial services experience, Mark has been both a producing independent agent in the field and a home office leader consulting to agencies and field marketing organizations. Currently, Mark is focused on the future of the insurance industry, from the disruptions of InsurTech and robo-advisors to the changing demographics and needs of customers. He also is an avid mentor, helping financial professionals navigate the industry.

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