Maximize your sales efforts by aligning the needs of Millennials with the benefits of term life insurance.

Transcription

1 Foresters Market Report: Term Life Insurance 1 Foresters TM Market Report: Term Life Insurance Maximize your sales efforts by aligning the needs of Millennials with the benefits of term life insurance.

2 2 Foresters Market Report: Term Life Insurance Defining Millennials The Millennial generation, also known as Generation Y, is broadly defined as individuals born between the early 1980s and the early 2000s. For the purposes of this report we will consider those between the ages of 18 to 34 in 2015 a Millennial. Millennials are a demographic life insurers simply cannot ignore. Why? In 2015, Millennials are projected to be the largest living generation in the US (yes, even bigger than Baby Boomers). 1 Explaining Term Life Insurance to Millennials Term life insurance can be an affordable starting point on the path to financial security. This is especially true for younger clients who may not have the financial stability to purchase more expensive and complicated products, such as permanent life insurance. Many of your younger clients will appreciate the fixed term protection offered by term life insurance. Term can be considered a great option to cover dependents, a mortgage or even school debt. Benefits of Term Life Insurance for Millennials Low cost and flexibility of coverage are what make term life insurance an excellent choice for Millennials. Term life insurance is generally a more affordable option. This can be attractive to a younger cohort that may not have the financial resources or the desire to purchase a more expensive permanent life insurance policy. Many term life insurance products can be expanded with riders. Disability protection and income replacement can provide the living benefits that may help some Millennials see the value in purchasing life insurance. Plus term life insurance can generally be converted to permanent coverage without the need for additional underwriting. This helps protect against future uninsurability should there be a change in health down the road.

3 Foresters Market Report: Term Life Insurance 3 Millennial Market Target and Scope Age Status 26% are married 69% of those not married do eventually want to get married 2 36% have children 3 Income Median household income of $61,0004 Millennials have higher levels of student debt and lower levels of wealth, compared to Gen X and Baby Boomers at the same life stage 2 Quick Stats 50% are politically unaffiliated 2 On track to be the most educated 29% identify as religious 2 generation to date America s most racially 86% live in metropolitan areas 4 diverse generation 2 Comfortable with self promotion Millennials are heavy internet users and relationship building online 5 and tend to research online prior to purchasing. They are very active on social media, with 81% using Facebook. 2 Market Size 75,300,000 Millennials in 2015 and will peak at 81,100,000 individuals in 2036, due to projected immigration 1 Appetite for Term 62% of all life insurance bought in 2013 by Millennials was Term 6 Perception of financial services Lack confidence in financial institutions and are pessimistic about their financial future 7.

4 4 Foresters Market Report: Term Life Insurance How to Communicate to Millennials Where to find them Millennials are resourceful and savvy when it comes to shopping online, and that includes shopping for life insurance online. Understanding how to market your business online through search engine marketing, search engine optimization and social media marketing will play a key role in reaching this audience. Millennials who are interested in doing business with you will search for your Twitter handle, LinkedIn profile, Facebook Business page, and your website 8. Without these, you don t exist. Millennials are not looking for an in-home visit. They would much rather communicate over the phone or online using your website (which must be mobile friendly) 10. Try following up after an initial meeting with a text message instead of an . Speak their language Millennials have grown up during a time of rapid technological innovation. As a result, they have an expectation of innovation and creativity in their daily lives. 9 Advisors who have a grip on modern communications, like texting and social media, may have an easier time speaking their language and communicating through mediums familiar to Millennials. How to Sell Term Insurance to Millennials Don t simply talk about product benefits. The best way to reach Millennials is to tell a story. When you are trying to communicate the benefits of term life insurance, you need to evoke an emotional response in order to get through. Beyond the typical life triggers like having children or mortgage protection, here are some other ways to meet Millennial needs with term life insurance. Scenario: Leverage your Baby Boomer clients Target: Younger Millennials with student debt Story: Selling term life insurance directly to an 18 or 19 year old may be a tall order. Their appetite for life insurance as well as their ability to afford it is most likely limited. The solution? Sell insurance to your current Baby Boomer clients who have Millennial children.

5 Foresters Market Report: Term Life Insurance 5 Your Baby Boomer clients may be co-signers on student loans, rental agreements or other financial obligations for their children. If their child were to pass away or become disabled, your clients could be on the hook for their children s debt. Dealing with the loss of a child is an unimaginable hardship. Removing or reducing the burden of their debt will be a welcomed relief during a time of need. Scenario: Protect a lifestyle in the event of a disability Target: Millennials without dependents or a mortgage Story: The scary truth is that only 13% of Millennials have some form of disability insurance 11. The issue is many think life insurance is only for major life events like buying a house or having children. However, lifestyle and paycheck protection are good reasons for term life insurance. A term life insurance policy with a disability income rider can be the living benefit Millennials need. In the event of a disability, your clients can keep up with rent payments and other bills to help maintain their lifestyle until they become healthy again.

6 6 Foresters Market Report: Term Life Insurance Foresters Lifefirst Term 13 Lifefirst Term Highlights Non-Medical underwriting up to $250,000 Available on 20-, 25- and 30-year term No medical exams 12, no fluids, no APS, no routine Personal Health Interviews (PHIs) Seamless e-app process as well as real-time point-of-sale eligibility decisions to help you get paid fast Medical Underwriting available Available on 10-, 20-, 25- and 30-year term Preferred Plus Non-Tobacco, Preferred Non- Tobacco, Standard Plus Non-Tobacco, Standard Non-Tobacco, Standard Plus Tobacco, Standard Tobacco underwriting classes available Comprehensive suite of living benefits Built-in Accelerated Death Benefit Rider 14 at no additional premium Chronic Illness up to 24% for any 12-month period, up to 95% Critical Illness up to 95% to a maximum of $500,000 Terminal Illness up to 95% to a maximum of $500,000 Also available at an additional premium Disability Income Rider 15 This rider covers disability due to either sickness or accidental bodily injury. Foresters allows two independent claims. Plus... Member Benefits Millennials are community-focused and embrace purpose-driven organizations 16. Foresters member benefits 17 perfectly align with these values by providing members with community granting funds to organize a variety of volunteer activities with organizations like the American Red Cross TM and Ronald McDonald House Charities (RMHC ). For more information, visit foresters.com or call our Sales Support team at , option 1 1 Pew Research Center tabulations of U.S. Census Bureau population projections released December Pew Research Center ( 3 Pew Research Center ( 4 Pew Research Center ( 5 Tech Target (whatis.techtarget.com/definition/millennials-millennial-generation) 6 LIMRA 2013 Annual U.S. Individual Life Insurance Sales Supplement Survey The White House: 15 Economic Facts About Millennials The Council of Economic Advisors October Insurability depends on the answers to a few medical and lifestyle questions and an underwriting review, based on underwriting requirements and guidelines. 13 Foresters Lifefirst Term and its riders may not be available or approved in all states and are subject to eligibility requirements, underwriting approval, limitations and state variations. Refer to the product guide and insurance contract for the applicable state for details. 14 This rider is not available for certificates issued with a base face amount of less than $50,000. On certificates where the insured s issue age is higher than 75 or issued as sub-standard, Terminal illness, where available, will be the only eligible illness issued. Not available in CA, CT, or NY. 15 Premiums paid for the Disability Income Rider (Accident Only) and Disability Income Rider (Accident and Sickness) may be refundable on death, less any benefits that may have already been paid under this rider Foresters member benefits are non-contractual, subject to eligibility requirements and limitations and may be changed or cancelled without notice. Foresters Lifefirst and its riders may not be available or approved in all states and state variations may apply. Foresters Lifefirst and its riders are filed under the form numbers listed below, where XX represents either US or your state s postal abbreviation, as applicable. Foresters Lifefirst: ICC13-TERM-LF-US01, TERM-LF-XX or TERM-LF-NY ; Family Health Benefit Rider: FHB-XX or FHB-NH Common Carrier Accidental Death Rider: CCADR-US , ICC13-TERM-CCADR-US01 or TERM-CCADR-XX ; Critical Illness Rider (Accelerated Death Benefit): SI-CIR-XX or CIR-IL ; Disability Income Rider (Accident & Sickness): DISR-XX ; Disability Income Rider (Accident Only): SI-DIR-XX or SI-DIR-MN ; Waiver of Premium Rider: ICC13-TERM-WPR-US01 or TERM-WPR-XX Children s Term Rider: ICC13-TERM-CTR-US01 or TERM-CTR-XX ; Accidental Death Rider: : SI-ADR-US , ICC13-TERM-ADR-US01 or TERM-ADR-XX Foresters is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society; its subsidiaries are licensed to use this mark. 789 Don Mills Rd. Toronto, ON M3C 1T9 Canada For licensed insurance producer use only. Not for use with consumers US (05/15)