What You Need to Know
- Millennials are turning 26 to 41 this year.
- They may not have settled down and bought homes.
- They should consider getting covered now, anyway, to lock in good rates.
It is no secret that we are in the midst of The Great Wealth Transfer, with the Silent Generation and baby boomers passing millions of dollars to their millennial adult children every day.
If anything, advisors have long been on the financial front lines of helping the Silent Generation and baby boomers prepare for this transition.
But, as wealth is transferred between generations, that shouldn’t mean an advisor’s work is done or client relationships are suddenly concluded.
If anything, this transfer represents a unique opportunity for advisors to build new — and equally as fruitful — relationships with millennial recipients.
Certainly, some advisors who have had long-term relationships with Silent Generation and baby boomer clients might already know their millennial children.
However, for those that don’t or want to further establish a relationship, life insurance can be a great starting point for which to build from.
1. Show millennials the (new) way.
As my colleague Yaron Ben-Zvi wrote in another ThinkAdvisor article last November, some life insurance has finally entered the digital age.
That means the ability to apply for and get coverage for term life online in minutes, often without the need for a medical exam.
For millennials who have come of age in an on-demand world, this ability to buy online can be the difference between getting coverage and delaying making the purchase.
Despite this, many millennials don’t know that such offerings exist.
After all, a recent survey by Haven Life found that 59% of individuals say they most consult their family for financial advice — and most Silent Generation and baby boomers purchased their own life insurance policies decades ago, when applications were still entirely paper, took months to process and medical exams were required.
When millennials are asking Dad where to get life insurance, “Talk to my advisor” is the common response.
When a client’s millennial child follows that advice and reaches out to advisors for guidance, helping them understand their universe of options is the first step toward building trust and showcasing value — the foundation of any long-term relationship.
2. Help them think long-term.
Millennials are often portrayed in pop culture to be flighty and noncommittal.
While I certainly can’t speak for all millennials, I can say that hasn’t been my experience.
Rather, what I have seen is that millennials are simply delaying some of the traditional life events that traditionally trigger the need for life insurance — whether getting married, having a child or buying a home.
It’s understandable then that millennials who aren’t married, don’t have a kid or don’t own a home might not understand the corresponding financial implications for when they do so.