In a very complex adult decision-making world, Life Insurance is one most Millennials (Generation Y) are missing out on. Asking millennial professionals some tough questions about their peers’ buying habits/thought patterns regarding this emotional purchase seems to be a great place to start to better understand where the huge gaps exist.
Ask the Expert-Millennials and Life Insurance
I recently sat down with Maddie Horner a 25 year old, Life Insurance professional in Sandusky, Ohio. She agreed to answer some tough generational questions and to shine some light on what she has found to be holding up her generation from making advanced adult decisions in the area of Life Insurance.
It is a fact 78% of people ages 24-39 have self-reported they do not have any or enough Life Insurance to cover their end of life expenses (debt, medical bills, funeral, etc.), if they were to die today (New York Life Insurance Gap Survey, 2018).
I commend Maddie for her honesty and professionalism in taking on this interview as it pertained, solely, to her peer group.
Sometimes the answers she gave were jaw-dropping and disheartening-all at the same time.
However, learning only takes place when gaps are filled and a person can move forward in their knowledge and understanding.
It is my hope we can all learn from Maddie’s experience and expertise in why millennials need life insurance, now more than ever.
The Tough Life Insurance Questions and a Professional Millennial’s Answers
1- Why do you, as an agent, feel it is important for 20-40 year old people to seek life insurance?
ANSWER: This is the best time to get it. You are never going to be younger or healthier than you are right now.
2–What are some of the excuses you have heard from the Millennial Market as to why they do not have Life Insurance?
ANSWER: They usually say they do not have TIME to talk with me, even though I make myself available whenever they want. That’s my job. I am flexible and I revolve around people and it’s when they want to meet.
Second objection I get is they really don’t care, along with, ‘Oh, I have some through work’, which we all know doesn’t stay with them.
Another objection to talking about it with me is ‘I can’t afford it.’ The funny thing about this is: How does anyone know they can’t afford something, if they don’t even know the cost of it. It is my job is to find out their budget and give options from the low end to high end of affordability. I know when it comes down to the end of the month between the electric bill or the life insurance payment, they are going to pay the electric bill.
3– What have you found in your industry to be the best ways to get the word out about Life Insurance for Millennials?
ANSWER: I have found in my industry, they are looking to people my age to get to this target market because I am considered a diamond in the rough. I have been told by managers in their mid-50s, because I don’t look like the target market’s parent I am a “shoe in”. I look like them.
I have found reaching people my age is the easiest through Face Book with relatable stories. I have also found using leads of people my age from my network. I like to sit down and have coffee and build relationships this way.
Another thing we have recently begun using is video posts to social media.
According to some research, many people like not having to read or look at things and will click on a video over a picture. They like to just listen. So, we have started making our own videos. Another thing I have found, is people in the age group are more likely to buy life insurance if they are a young family with children. They do take it more seriously.
4-What is the “Rule of Thumb” to find out how much Life Insurance a person would need?
ANSWER: The most important thing I ask is “WHY” are you considering Life Insurance? I need to know what reason they have for seeking it out. Many times it is for final expenses, or covering the debt of a mortgage or other debts. Other times people want the Life Insurance to leave a legacy to their family.
5-Why is Life Insurance so cheap when you are younger and more expensive as we age?
ANSWER: The younger you are the probability of you dying is less. As you age the probability goes up because of health issues that arise. Also, the price of Life Insurance for men is higher because it has been found women tend to make better decisions than men.
The “Watch this!” situations could explain this…
6-What are the differences between the types of Life Insurance that are available?
ANSWER: Term is the cheapest route to go and will end someday. Permanent Life Insurance (a hybrid of Term and Whole) will last forever but will never gain a cash value. Whole Life Insurance lasts forever and builds a cash value that can be borrowed against or cashed out.
7-When is a good time to start converting Term Life Insurance over to Whole Life Insurance for its extended benefits?
ANSWER: With Western & Southern Life, you have to have the Term Policy for at least a year before you can begin to convert over to Whole Life Insurance. The premiums are then adjusted as the person ages based upon cost and need.
Term is a great supplemental to Whole as long as the contract to pay the premiums is not breached. We like to say Term Life Insurance is ideal for the “G0-G0 YEARS.” This is when you are younger and life is faster with kids, house, the whole 9 yards. Then, there’s also the “SLOW-GO YEARS” (retirement, no kids at home) and “NO-GO YEARS” (elderly).
8-Are there any tax benefits to having Life Insurance?
ANSWER: Life Insurance is completely tax free to the beneficiaries. Since the payer already paid the taxes on the money, the Life Insurance is like a gift.
9–What is the result of Life Insurance if the insured person commits suicide?
ANSWER: Suicide on most policies is not covered in the first 2 years of a policy. After that, the Life Insurance is valid and can be paid out.
10-Last question, do you have any “Wild and Crazy” Questions you have been asked by potential clients seeking Life Insurance?
ANSWER: I have been asked the suicide question. I have also been asked within 5 minutes of meeting someone, how much a Life Insurance policy would cost per month for a mother and child. I have been asked if DUI (Driving Under the Influence) Charges affect premiums.
*All answers have been quoted to the best of my ability. Some answers were paraphrased due to the transcription.
A very special thank you to Maddie for spending an hour of her precious time to answer my questions. If you would like more information, please contact her at: Maddie Horner, Western & Southern Life, 419-239-2086, firstname.lastname@example.org.
Final Thoughts on Why Millennials Need Life Insurance
Takeaway #1-People must choose to take care of their own priorities (debts, medical expenses, final expenses) sooner than later, no matter their age. We all get the same 24 hours (86,400 seconds) in our day. Using 1 hour to learn more about taking care of the people we love, after we die, from a trained professional should be a no-brainer.
Takeaway #2- Life Insurance is available to most everyone. With the 3 different types, an individual can define his/her “why” for purchasing and find an affordable option.
Here is an Easy, Life Insurance Calculator to give you some general estimates.
Takeaway #3-Starting a policy when young (under 35) can bring MUCH peace-of-mind to loved ones over time.
Takeaway #4-Life Insurance can be a great way to leave a legacy to loved ones, after final expenses are paid.
So, what is your take on Life Insurance and Generation Y/Millennials? Are you in this group?
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