Insurance agents across the nation have been waiting, and waiting and waiting for Millennials to start buying life insurance and other life stage related insurance products. However since Millennials are marrying, starting families and buying homes later than previous generations, many insurance companies are unsure when to begin targeting Millennials in earnest.
A new study by TD Ameritrade seeks to answer some of those questions. According to the Millennials and Money survey, the late 20s seem to be the time when Millennials are taking stock of their financial lives and actively planning for the future.
According to the study, the average Millennial starts setting financial goals at age 27, some nine years earlier than when Boomers started. By this point some 80% say they have already created a budget and 72% are actively saving for retirement. As to future plans, most Millennials are looking to buy a home by age 29 and hope to have their student loans paid off by age 33.
We were curious just how well their future plans were lining up with reality. So we compared these hopes and dreams to the National Association of Realtors 2016 Home Buyers and Sellers Generational Trends Report. Sure enough, for the last three years of reports has been that Millennials (buyers under age 35) make up 35% of home buyers, the largest of all the demographic groups. And 64% of these Millennial homebuyers are married and 20% had at least one child.
Taking on financial responsibility, buying a home, getting married and having a child are all proven insurance-buying triggers. And even better news for the insurance industry is that Millennials appear to be very disposed to buying protection. According to the 2016 Aflac WorkForces Report they’re more likely than any other generation to use their hard-earned money for cell phone, home appliance, identity theft, trip, pet and even instrument insurance. They’re even the most likely to insure major events, such as weddings, and to purchase products protecting them from tax audits.
Despite all the trends pointing in their favor, many insurance marketers are still struggling with selling traditional insurance products such as life insurance to Millennials. Is there some missing piece to the puzzle of breaking through this barrier? Bodden Partners, known in the industry as leaders in insurance marketing, has recently published The Essential Guide to Marketing Life Insurance to Millennials. The report includes four key strategies to convincing Millennials to buy life insurance. Download your free copy today.