Due to COVID-19, millennials feel more than any other age group the need for life insurance. The way they shop for it is quite different from years ago.
Nothing is more powerful than losing someone you love. This will help to highlight the importance of life insurance. Most of us have felt some loss this year due to the suffering and grief caused by the global pandemic. Many people, who had never thought about or planned for their own deaths, have found themselves confronted with this topic in the past year.
This shift is especially significant for millennials who are now aged 22-44 and begin planning for their next phase of life. A recent study showed that millennials are most likely to be influenced to buy life insurance due to the pandemic. 45% of millennials believe COVID-19 is more likely to make them buy life insurance than 15% of baby boomers or 31% of Gen Xers.
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Just as millennials are changing the way we dress at work and how we buy our cars, so is the life insurance market. These digital-savvy millennials prefer online research and information, which they then supplement with financial advice from a professional to ensure they are on the right path.
These are some of the ways that the life insurance market has changed in recent years. We also have some tips for millennials who are considering their options.
Fact: Life insurance is less common among employers.
56% of Americans working for private companies have life insurance through their employers. In the past decade, there has been a steady decline in the number of companies offering these benefits, mainly through group plans. What is the result? The result? More than half of people who have life insurance bought it separately.
Your move, millennials. If your employer offers life insurance, you should review the coverage options. It’s possible to find the right coverage for you. You might also find that you have to buy additional coverage. Most employer-sponsored life insurance plans provide very basic coverage. The policy may not be transferable if your employer terminates the contract. This is especially important for millennials who are more likely to change jobs.
Trend Alert: This process is getting faster and more simple.
Millennials have made it easy to purchase almost everything online, from groceries and cars. Although life insurers and agents had been making improvements to digital tools to make it easier to search for and buy life insurance online, the pandemic has accelerated these efforts. It is now much easier than ever for consumers to compare quotes and research providers. You can even complete the application and delivery process online.
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You might still need one. In recent years, a growing number of insurance companies have eliminated the requirement for a physical exam. This means that you can buy a life insurance policy with no medical exam or blood tests. These policies are typically easier to underwrite than traditional policies and offer convenience by avoiding additional appointments. They are not for everyone. For example, policies that don’t require an exam are more expensive than policies that do include one. Coverage may also be limited to $500,000.
You have options, millennials. With the ease of researching and purchasing insurance online, there is a wide range of tools and options available to you. You should get started as soon as possible, because prices will only increase with age.
It’s possible to have it your own way, good news
The customization is a favorite of millennial consumers. There is a lot you can do yourself, with so much information available. If you have any questions, or need guidance, a financial professional can help. A financial professional can help you make informed decisions and ensure that you are fully aware of your options. An experienced professional can help you understand the nuances and benefits of life insurance. According to Boston Consulting Group, more than half of millennials who bought life insurance during the pandemic used a live advisor, while 30% used both an online and live adviser.
Life insurance policies can provide financial security for your loved one in the event of your death. Many policies also include optional riders, sometimes at an additional cost, that can address other concerns such as chronic illness and longevity risk.
Your choice, millennials. Choose the best method for you. This could be an online purchase only, a live adviser or a combination of both. Your employer might be able to provide advice if you are unsure where to look. You may also be referred by family members or friends. This is one of many ways that advisers gain new clients. Many states have financial professionals licensed online and many have registration requirements. It is a good idea to select at least two to three people for interviews if you don’t have a trusted referral.
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Insurers have been able to offer new products and innovative solutions to meet the needs of millennials, as they are more likely to buy life insurance. This is great news for applicants who are first timers, as it may be easier than they expected.