PHP Agency is a national financial services marketing company located in Texas. In the following article, PHP Agency reviews how to address the coverage gap in life insurance sales.
According to Life Insurance and Market Research Association (LIMRA), Americans’ interest in life insurance is reaching new heights, with 39% planning to purchase life insurance in the coming year.
In particular, 50% of millennials want and need to buy life insurance. Among the entirety of millennials that participated in the study, 47% admitted to not having coverage or wanting to increase their level of protection. As for millennial parents, 29% of them haven’t purchased any coverage at all because their lack of knowledge is discouraging them from beginning the process.
PHP Agency Addresses the Knowledge Gap
Regardless of the demographic, PHP Agency reviews that the most common reason for not having life insurance is the cost. However, only 24% were correct when asked how much a typical policy would cost for a healthy, non-smoking 30-year-old. 38% of millennials thought it would be north of $1,000, when it’s actually only $200 per year.
Though the horizon looks promising as the S&P 500 makes its slow recovery from October 2022’s low, there remains a sense of financial uncertainty. It’s crucial to communicate to these young adults the importance of financially protecting their loved ones.
However, PHP Agency reviews that this is a rather tricky task for agents, as millennials don’t react well to conventional sales tactics. So, how does an agent aim for millennials when presenting life insurance coverage?
Less Selling, More Listening
Two out of the three millennials don’t have life insurance, simply because of their lack of knowledge on the topic. A conversational approach that draws out information on their fears, goals, and life struggles can help the process feel different from a typical sales call, easing the atmosphere.
PHP Agency reviews that organizations should turn sales calls with millennials into a more meaningful conversation – the goal is to educate them on how life insurance can help them protect their loved ones or achieve financial stability.
Millennials are currently between 25 and 40 years old. At this age, many have loved ones who financially depend on them, and unforeseen occurrences are a real cause of concern for these millennials. One way to get them interested in life insurance is to ask about the potential future of their loved ones in the case that something happens to them.
There’s also the prospect of accumulating an emergency fund through the cash value of a life insurance policy, and educating them about how it could alleviate anxiety related to sudden financial emergencies. This cash value can also be seen as a retirement vehicle, if there are concerns about retiring comfortably.
PHP Agency reviews that by educating, advising, addressing fears like not qualifying or overestimated premiums, and offering personalized solutions to their problems, signing the policy simply becomes the next logical step.
Updating Old Tactics
Modern problems need modern solutions – it’s time to replace that dusty old phonebook.
Embrace Selling Online
PHP Agency reviews that Millennials prefer doing their own research, often taking time to vet a company themselves before going any further in the decision-making process. Having an up-to-date website and a strong social media presence is vital, as 75% of millennials turn to social media platforms for research and crowdsourcing ideas (even for financial topics).
Streamline the Process
In a world of DoorDash and overnight shipping, convenience is king. Making most or all of the process doable online will make millennials more likely to engage with the product, but don’t forget the personalized touches in person.
Leverage Social Proof
Reviews and testimonials are an integral part of the decision-making process, and it’s important to utilize these as much as possible.
PHP Agency reviews that the traditional method of cold calling doesn’t work very well in the digital age. A higher percentage of younger adults would rather buy life insurance online than through a financial professional. However, many realize the importance of such a decision and are willing to strike a middle-ground by taking time to research online and still work with a financial professional prior to committing to a decision.
“The industry needs to realize, it’s not just the platforms we use that need to change–we need to adapt our messages and images to reflect the reality of these younger generations,” said John Carroll, senior vice president, head of Life & Annuities, LIMRA. “We also need to tackle the challenge of combining the digital experience with access to human advice.”
It’s time for the industry to meet consumers, particularly young adults, where they are–which is online.