77%
recognize the need go on to shop for life insurance
Millennials Are Serious About Life Insurance
Millennial households are accustomed to the digitization processes of shopping and buying nearly everything. During and since the COVID pandemic, social media, family, friends and financial professionals are influential to millennials considering an individual life insurance purchase, providing education and advice.
Who Are Millennials
The Buying Process
Buying Process
The
Millennials are more likely to recognize the need (39% vs 27%), seriously shop (30% vs. 19%), evaluate quotes (26% vs 16%), and purchase individual life insurance (18% vs 10%) than U.S. adults overall
of millennials purchased more than half of the individual life insurance policies sold in the prior 24 months
0
%
of Millennials already own some life insurance – and a 1/3 are likely to buy life insurance in the next 12 months
0
%
There are more than 80 million Millennials in the United States and stand to inherit more wealth than their ancestors
One of the most educated and innovative generations
5
Post Coverage
Purchase Coverage
4
Evaluate Quotes
3
Seriously Shop
2
Recognize Need
1
Recognize Need
say conversations with friends, colleagues, and relatives sparked their interest in life insurance
0
%
of Millennials engaged with a financial planner to learn more about life insurance citing both in-person and virtual meetings
Information received by email (37%) and direct mail (34%) are the primary influencers that spark life insurance interests and considerations among Millennials
What Sparks Millennials to Consider Life Insurance
0
%
What Channels Do Millennials Use to Shop
One in four meet with at least one financial professional for life insurance shopping meaning human interaction is still integral in the process even with digital advances
Direct mail carries a reasonable influence for life insurance purchase solicitations with more than one-third of all ages valuing this channel.
favor online sources to shop for life insurance, in line with the total US population
0
%
0
%
Seriously Shop
say they applied for individual life insurance with a financial professional
of households evaluate at least one life insurance quote
are most likely to cite using the website of a specific company to apply for a quote
How Millennials Apply for Individual Life Insurance
Evaluate Quotes
0
%
0
%
0
%
Purchase Coverage
How Millennials Finish Their Purchase Funnel Journey
of Millennials purchase life insurance through a company website
Seven in 10 millennial households that receive a quote go on to make an individual life purchase
Although, technology and digital processes may be comfortable to millennials, the subject of life insurance is often not and they will likely seek the advice of a financial professional 22% of the time
0
%
find value in purchasing life insurance through the website of a group they belong to such as AAA
0
%
While reasons to buy are consistent across the millennial cohort, the frequency with which younger versus older millennials cited final expenses and wealth transfer as reasons to buy reveal some key differences:
Key Insights and Factors in the Purchase Decision
0
%
0
%
Younger Millennials are far more likely to cite burial and final expenses as a reason to buy more than are older Millennials
Younger
Millennials
Older
Millennials
Younger Millennials are far more likely to cite burial and final expenses as a reason to buy more than are older Millennials
0
%
0
%
Younger Millennials cite transferring wealth to a family member upon death more frequently than by older members of this generation
Younger
Millennials
Older
Millennials
Replacement of income remains the primary reason to seek life insurance across all generations
Top barriers to those who recognize the need but do not obtain a quote include affordability and difficulty understanding how much coverage is needed
TAKEAWAYS/ CONCLUSION
TAKEAWAYS
Seamless omni-channel experiences are the new table stakes to keep Millennials progressing through the purchase funnel
With Millennials being more technologically fluent than previous generations, mobile-centric shopping enablement is essential
Online distribution channels are increasingly popular among Millennials
Millennials cite income replacement as the primary reason to buy life insurance
CONCLUSION
Millennials are more aware at a younger age of the importance of life insurance to replace income, cover final expenses, and transfer wealth to family members, than Gen X and Boomers. They find themselves ahead of the curve with financial wellness top of mind when recognizing the need, applying for and buying life insurance. Life insurance carriers must adapt and strengthen engagement with this core group of buyers using forward-thinking solutions and innovative best practices.
Additional Resources