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Gen Y and assuming they are in good shape have the easiest chances for getting good rates that cannot go up once they are locked in. Not only that, but certain policies like Whole Life and VUL policies can be used as investment vehicles to pay for your future children's college and so on. If I could do it again, I would have opened up some huge face value accounts when I was 16. There are no underwriting requirements or medical tests until you turn 18.
The problem is insurance companies don't do a good job of marketing this. They always go after people who are just starting families instead of educating the general public on these tools early on. The reason I know this is because I used to sell life insurance and still hold my license.
Life Insurance and Gen Y, Why Bother?
Categories: News, Rumors, Gossip, & Trends Innovation Discussion Financial Services New Products, Services, and Business Models Innovation Community Ideas
The Life Insurance Industry has been in distress for years over the aging field force problem—and their resulting inability to reach younger consumers.
In fact, this industry has been concerned since Gen Y was in diapers. And cracking this code? It’s on the minds of top marketing and distribution executives in every company. However, few are seriously working on it while most put their money into immediate opportunities with Boomers and Xers.
Why not Y, why not now?
The rationale at play here is:
“That’s not where the money is right now. And, Gen Y’ers think they are invincible because they have youth on their side. The last thing they are thinking about is what if…”
Or is it?
A recent LIMRA study (2008) showed that Gen Y isn’t too far behind X and Boomers in their thinking. 63% of Y-ers think life insurance is important. And almost 2/3 agree that it’s the best way to protect the people they care about.
What’s the difference?
It’s where Gen Y is getting their advice.
When Gen Y needs life insurance information, they utilize the internet, right? Wrong! In fact, Gen Y is less likely to get this type of information through the web than either Gen X or Boomers! And while the single largest source of this information is still the financial advisor, Gen Y is almost equally as likely to turn to friends and relatives for this advice. And unlike their older siblings and parents, they turn to their employers as well. Why? Perhaps there just isn’t enough interest on the part of advisors to work with them, and Gen Y needs to turn to someone else they trust. More demand than supply.
Where’s the innovation?
It may not be the product, or vastly different delivery systems; it may be in the area of making this market more attractive to producers—or to get friends, family and employers in the mix. Yes, I know you may be thinking “been there done that.” But perhaps you haven't had the right combination of insight into an unmet consumer need, idea and communication. If one is missing or slightly off target, innovation won’t be successful. If the process for uncovering and aligning all three isn’t right, new products in the life insurance category will miss the mark.
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View unverified member's comment - posted by Barbara Ingetti
Barbara,
That is too funny! Connect with me on LinkedIn - http://www.linkedin.com/in/deepak5150
Deepak
I was recently approached by a young man offering something called quality of life insurance or something. It's apparently a UL, with living benefits that we can get the death benefit before our death if we had a heart attack or something. I told my husband about it and we are very eager to not only get this for ourselves but also for our three daughters, they're 12,15, and the oldest just recently turned 19. As you said deepak, the UL can be used as an investment vehicle and I wish now that I would've had a policy like this for them years ago to help with the college, for now and later...
Funny story there also with the guitar!
It's American General Life and Accident. We just finished having the applications written and the agent said that they'll go through underwriting and we should have the policies issued in about a week or so...
*crossing fingers*...
I got so many offerings by some famous insurance companies but I declined it all, Well, I think it's up to me to challenge my life without any lifelines on my side.
Meryl
ehr systems services
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