At their relatively young ages, years of opportunities still await the Millennial population. These opportunities create the need for life insurance protection which, unfortunately, Millennials often lack.
Fewer than half of Millennials have life insurance, according to the 2022 LIMRA Barometer Study, and those that do are often underinsured through their employer-provided group coverage. Studies have shown that Millennials, a group between the ages of 26 and 42, tend to overestimate the cost of coverage and lack life insurance product knowledge. These factors often prevent Millennials from obtaining the protection and benefits that they typically need.
Educating Millennials on the concept of whole life insurance and sharing a concept called “Insuring Your Opportunity” can help Millennials overcome the misconceptions that they often hold about purchasing life insurance. Millennials are frequently surprised to learn that, in addition to a death benefit, whole life insurance also builds cash value that can be accessed as funds are needed. Additionally, the cost for their age group is less than they expect.
In discussing their needs, Millennials often express a desire to protect their current or future family in the event of premature death. They also express concerns about having an emergency fund, managing debt and preparing for retirement. That is where the “Insuring Your Opportunity” design comes in. This design includes:
- a whole life policy designed for cash accumulation
- a flexible paid-up addition rider
- a term rider
Structuring these components appropriately results in a solution that provides a relatively high death benefit at a low cost while creating an opportunity to contribute to the policy when financial situations change.
Other features of this concept that Millennials find beneficial include:
- Lifetime insurance coverage—as long as premiums are paid coverage continues through the insured’s life, unlike term insurance which only lasts a specific period.
- Guaranteed death benefit—insureds take comfort in knowing that their beneficiaries will receive a predetermined amount that is guaranteed.
- Cash value accumulation—these funds can be loaned against for emergencies, retirement or any other need that arises.
- Opportunity—the increased death benefit through the term rider also increases the funding options through the paid-up addition rider so that as financial situations change, more money can be allocated to the policy.
Make this concept work for you. Think about the Millennials that you know. They may be part of your professional network, social circle or the sons and daughters of current clients. Give them a call and see if “Insuring Your Opportunity” may work for them.