How millennials are likely to buy life insurance:
The emergence of new Insurtech platforms are great for society if they can lower the cost of insurance/ risk transfer – allowing people to invest their cost savings or buy greater limits of insurance. The expense savings, data power and scalability of a online Insurtech platform has great potential for insurers and customers. The power and ease of use of these platforms is great, but identifying your target audience and focusing on them is the way to grow your business. I think these tools are how millennials are likely to buy life insurance in the future.
There are many articles on who is included in the Millennial generation, I am not going to waste your time repeating. They are a group of young men and women grouped together as a consumer group.
However, as I talk with more and more millennials, as a consumer group they are tired of using the phone or middle man for anything. Most consumer transactions this group would prefer to use an App or website to order, deliver, and repeat without contact another human. When discussing insurance purchasing and the insurance transaction I had many different responses – but the same trend could be seen.
When talking specifically about a current or future life insurance purchases many millennials suggested they are equally as tired or unwilling to use a life insurance agent to buy something as straight forward as Term Life insurance.
This is a generation of people who have the ability to learn and absorb information, far better than others, due to their computer comfort, expertise, and abilities at leveraging technology. If they can do it themselves they will.
There are a few great tools out there to buy life insurance. PolicyGenius is the best we have found. There are a few reasons why we think this tool is so powerful and consumer focused:
- Insurance Checkup tool
- Access to great carriers and Basic limits
- Ease of use/User friendliness
- Customer service in the event of an issue
Click here to go to PolicyGenius
This shift to online purchase of life insurance is good for the consumer, good for society, good for the economy, and good for the insurance industry. If the consumer saves money, that money is reinvested in jobs or the economy, and/or saves the insurance industry money which helps society/economy/jobs it is a good long term outcome. (But keep in mind might not be great for the standalone life insurance agent if he/she doesn’t pivot or provide other value added services.)
I support the shift by millennials in how they purchase products but I also value and recognize the need for agents to help those individuals with more complicated/customized insurance needs.
I am especially proud to witness the progress in Insurtech and look forward to seeing how these tools impact lives.
I may update this article as other great competitors enter this space.