Millennials and Life Insurance - Bridging the Gap

December 1, 2020 at 11:00 AM / by Ibhaze Uduehi  /  4 minute read

Millennials & Life Insurance - Bridging the Gap

For a while now, the life insurance industry has overlooked millennials. One reason is that compared to the boomer generation, millennials’ achievement of significant life goals is delayed because, for instance, of the burden of paying off student loans. Then, there is the effect of such delays on lifestyle choices and financial priorities. The cumulative outcome is that life insurance is often relegated to the bottom of the millennial’s list, or in some cases, it is simply not on it at all. Previously, we broached the subject of millennials and the life insurance industry, with a view to connecting both parties via disruption and technology. With the millennial demographic comprising the largest generation in Canada, it is more essential than ever to prioritize this audience.

The Millennial Generation

Millennials, or those born between 1981 and 1996, grew up in a tech world that influenced their lifestyle and behavior significantly more than that of earlier generations. Living in a time when the internet facilitated the formation of online communities, which became more meaningful than geographical ones, led to a more globalized view of individual perspectives, therefore reinforcing universal milestones and achievements—gaining employment, paying off student debt, having children, and taking out a mortgage. With the focus on clearing debt and reaching financial stability before having children, millennials felt early on that they had too much on their plate to undertake additional costs. Besides, despite wanting the best for their eventual life partners and offspring, connecting that desire to a tangible solution such as life insurance has not occurred among most millennials. Still, it would be remiss of the life insurance industry to leave this large a market untapped. It is, accordingly, worth exploring the possible reasons for the disconnect between millennials and the Industry:

  • The industry not considering millennials the primary target.
  • The perception that millennials lack interest in life insurance.
  • Millennials’ inability to comprehend Industry jargon.
  • The need for the Industry to optimize or capitalize on digital platforms and online channels (the natural habitat for the millennial audience).

How to Connect with Millennials as an Advisor

Learning to speak a new language in a new country is seen by many to be an exciting adventure. A variety of methods are applied to learn a new language: taking language classes, using a language app, and listening to audiobooks, to name a few. Regardless of the process, the journey remains the same – research, learn, and practice. Similarly, a new business can be acquired in multiple ways. Most techniques rely on understanding the habits of the potential audience through research. The same applies to a millennial audience. Millennials are frequently online and tech-savvy. Almost all aspects of their daily lives rely heavily on the internet. To bridge the gap between the Industry and millennials, Advisors should consider following these guidelines:

  • Take a few digital marketing courses: The internet offers several free online courses for sales professionals that will enable you to become acquainted with or even gain a more in-depth knowledge of digital marketing. HubSpot, for example, contains a gallery of free, insightful digital marketing content to set you on the right path.
  • Build your online presence and expertise in life insurance: The above free courses will also help you with all the necessary stages in building a professional yet engaging online presence.    
  • Research to understand millennial online behavior and the channels they use. Tools such as Google Analytics and Keyword Research should provide you with information on this potential audience.
  • Promote life insurance solutions by simplifying industry terms and processes. While the more expert, or technical, language or tone could come during the latter part of the consumer’s journey, it might initially obfuscate your audience, especially when used on social media. Here, less definitely means more.

How to Connect with Millennials as an Insurer

Life insurance companies also have a role to play in facilitating the handshake between the Industry and potential millennial customers:

  • Optimize your website for mobile phones. Millennials are more inclined than older generations to seek information on mobile phones. A user-friendly website adapted to mobile devices will always perform better.
  • Create an intuitive app with these two key points in mind:
    • Ensure that your app’s UX design reflects your user’s perspective, not that of your designer.
    • Include every important detail that facilitates your user’s journey. Do not compromise on simplicity. Many free online resources are available for you to learn more about this process and get advice on the requisite skills of the consultant you might need to hire for this task.
  • Build your brand’s online and social media presence. Conduct online research to know where your target audience spends their time and then advertise in those spaces. Having a social media presence makes your brand seem more human and thus more relatable to your audience. Social media additionally increases the awareness and the positive perception of your brand among millennials, drives traffic to your website or app, and is a potential source of qualified leads.

Given our current reality and with more online traffic than has ever been experienced before, connecting the millennial market and the Life Insurance Industry should be at the top of the list for every Advisor and Insurer in the Industry.  

Topics: Life Insurance Business as Usual, Digital and Social Media

Ibhaze Uduehi

Written by Ibhaze Uduehi

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