The Generation Y market is a huge and largely untapped market for life insurers, which is bursting with opportunity and need. But, unlike their parents, Gen Y clients need a little more convincing to see that life insurance is still something they should highly consider and incorporate into their financial portfolio.
Believe it or not, Gen Yers are money savvy and are in-tune with their financial outlook. HealthLifePro.com reported that about 83 percent contribute to a 401(k) plan, and nearly 50 percent are auto-enrolled in a savings plan sponsored by their workplace.
Because of this, it’s important that when you talk to a Generation Y client about life insurance that you make the connection between financial planning and life insurance, and focus on life insurance being a portfolio asset for retirement.
For example some life insurance products, like index universal life (IUL), can accumulate cash value which you can use during retirement tax-free! Plus, that cash value is invested in the S&P 500, which combines investing with life insurance coverage. There is also no pre-set limit to the amount a client can contribute to the cash value account.
You can also showcase the living benefits and the value of having them in their portfolio. From long-term care, disability riders and return of premium, there are a lot of benefits to having life insurance, especially with the uncertainty of the future of Social Security.
Also, remind them that obtaining life insurance while they are young and healthy will set them up for lower premiums. Plus, they don’t want to make the same mistakes their parents did by investing too much in the volatile stock market.
In the end, Generation Y clients want to know what is in it for them. So if you can present life insurance in this way, you’ll start seeing a lot more sales from the younger generations.