Gen Y and Life Insurance Needs

Gen Y and Life Insurance Needs Do today’s Gen Y insurance consumers really know what their needs are when it comes to insurance? According to a recent study from Prudential Individual Life Insurance, consumers born between the years of 1979 and 1994 believe that insurers have not officially begun targeting them yet. With that being the case, consumers believe insurers have resorted to using generic tactics to move their products. While 68 percent of those surveyed say they intend to purchase, or add life insurance coverage within the next three years, they aren’t interested in being a part of the usual acquisition process. Gen Yers want to be empowered to purchase, and ultimately they’d like to witness individuals like them who have insurance and are better as a result of it. According to a company spokesperson, “Hearing these statements firsthand really turned our original thinking and approach on its head. While it’s clear that more research needs to be done, we know that our marketing messaging needs to meet Gen Yers where they are, and allow them to see themselves with life insurance.” The real challenge is for the industry to augment traditional distribution channels and start to think more broadly regarding various consumer access points. This is especially true for Gen Y, due to the fact this group wants to avoid being pressured or automatically enrolled into life insurance plans they do not comprehend. They also want added education regarding life insurance products and ultimately an easier way to purchase coverage. While 53 percent of Gen Yers surveyed would think about acquiring life insurance online, they still want to discuss the possibilities with an agent at some in the process. The Prudential spokesperson added that, “Today, so much of our time is spent online so it’s no surprise that the Internet is their first stop when they’re looking for information about life insurance,” said Cleveland. “When people put Gen Y and the Internet in the same sentence, they automatically think social networking. But that is only one part of the equation, so we’ll leave it up to them to drive the process and tell us where else we need to go.” The study also revealed that Gen Y understands life insurance as a concept, but the complexities of pricing, product types and the underwriting process are still lost on this group, resulting in many misconceptions. For example, many Gen Yers think life insurance is only necessary for those with high-risk jobs or for people who are sick, old, or both. Some even described it as a luxury item only for the wealthy. Despite these perceptions, Gen Y is a market that should not be overlooked by the insurance industry. “To align with the lifestyles and preferences of Gen Yers, we’ll do a better job of demystifying the life insurance process. And, we’ll look to relinquish some of the control and allow them to teach us about themselves so we can create relevant products and processes,” the Prudential spokesperson added. For those Gen Y consumers in need of life insurance information and policies, the Internet is a great resource to learn what policy type may best fit their needs. Working with an independent agent is an even better option so that they find the right life insurance to protect them and their loved ones.