While life insurance companies are eager to capture the millennial generation, they appear to be having limited success. Millennials are 33 percent less likely than typical adults to have policies, and less than two in ten are planning to buy coverage in the next 12 months, according to GfK MRI’s “Survey of the American Consumer.” Furthermore, even those with insurance may have under-purchased — a typical challenge in this industry — with just 12 percent covered for more than $500,000.
Though much has been made of this generation’s delayed adulthood, their profile aligns well with the life insurance proposition. Many millennials should be in the market to buy insurance: 42 percent are parents; 35 percent are married; and 9 percent are engaged.
Even those who have purchased insurance may have done so without much thought. Most insured millennials (57 percent) get policies through their employers; a purchase environment that is often characterized by subsidized policies, little to no underwriting requirements, and bundled decision making.
So, even though insurance companies have been successful at selling something to some Millennials, have they really made the connections that they seek? And how do they capture the attention of Millennials who do not have insurance?
Understanding what moves this generation to make financial decisions — particularly those who plan to buy life insurance — may help marketers break those barriers.
Here are psychographic insights that focus on millennials buying insurance (MBIs). This group plans to purchase coverage within the next 12 months.
The millennial money mindset
Overwhelming financial burdens, the social nature of financial decision-making, living in the moment and their digital lifestyle shape how MBIs buy financial products and services.
The debt problem: MBIs (78 percent) agree that investing for the future is very important, but this is a generation saddled with debt, particularly from school loans. More than half (59 percent) of MBIs say they are overwhelmed by financial burdens. They are 16 percent more likely than typical adults planning to buy insurance to feel that way.