Millennials aren't college kids anymore. In fact, according to Pew Research, they are the largest generation in the U.S. workforce. This generation is projected to grow its income significantly in the coming years. Many are already making important financial decisions, including buying a first home, investing in a 401(k) and paying off student loans.
However, when it comes to long-term planning, what many millennials often ignore is life insurance. You can help your millennial clients by educating them about life insurance and why right now might be the best time for them to get it.
Here are five topics you should consider when talking to millennial clients.
1. Policies are more affordable when you're young
Life insurance can be confusing to first-time buyers. The average person, your clients included, has plenty of misconceptions about it, and one of those misconceptions is about cost.
Policies are generally more affordable when you are young. Make sure to highlight this with your clients and show them a few policy examples that you think could work for them.
2. Emphasize that accidents do happen
No one wants to think about the end of life, and for many millennials, that seems very far away. However, while most of your younger clients will live long and productive lives, there are never any guarantees.
For this age group, the Centers for Disease Control and Prevention found that unintentional injury is the leading cause of death. You'll want to remind clients that the unexpected can happen at any time. With the average funeral cost running over $7,000, it's important those left behind aren't saddled with costs they might not be able to afford.
3. They are becoming a sandwich generation
The oldest millennials are approaching 40, and that means many of them have aging parents and young children of their own. Those additional costs and responsibilities can take a toll.
As your clients work with you on their long-term financial plans, you'll want to help them navigate the possibility that their dependents could have significant financial needs if something were to happen to them. This is where the benefit of life insurance can help smooth the path and still provide some financial assistance for their surviving spouse, kids or parents to pay for school or health care costs.
4. Protect student loan co-signers
If there's one thing many millennials understand it's student loan debt. For many of your millennial clients, their parent or someone else may have acted as a co-signer on their loans.
Something your clients might not know is that if they pass away before these loans are paid off, there could be real financial consequences for their co-signers — including bankruptcy. Life insurance can help those co-signers avoid financial hardships if they become responsible for paying these loans.
5. Employer-based insurance isn't always enough
Many companies offer employer-based life insurance as part of a benefits package. However, some of these policies just take into account the bare minimum and aren't enough to fully cover your client's needs — especially if they have a family.
Now, add to that the fact that, with a rising gig economy and self-employment opportunities, many millennials switch jobs often or work for themselves. In this case, it's critical you help them understand how a life insurance policy can protect them and their business interests.
Be a trusted source of information
At the end of the day, the best thing you can do for your millennial clients is make them feel comfortable asking questions and giving them all the information they need.
These clients tend to want more personalized service: Walking them through everything from the application process to how medical exams work can help them understand how vital life insurance is, even if, hopefully, they won't need it for a very long time.
Learn more about turning a life insurance shopper into a buyer.
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