It’s the young and single workers who are purchasing life insurance through work.
That’s what a LIMRA study of 2,300 insurance buyers found. According to study participants, 75 percent of workplace life insurance buyers are members of Generations X or Y. The boomers aren’t nearly as valuable as potential prospects.
“Younger, less experienced buyers typically do not have financial advisors, so they tend to look to different information sources compared to older customers,” said Ron Neyer, assistant research director, LIMRA Distribution Research. “Workplace life insurance buyers are also more likely to be first-time customers of individual life insurance, and about a quarter have never had a general discussion with someone who represents the industry.”
The survey found that most buyers, either workplace or outside purchasers, have household incomes that exceed $50,000, and they say they’re buying to protect their families from financial need.