For Millennials, Life Insurance Is Key to Planning for the Future
Numbers can tell a story. When it comes to life insurance, the numbers say that there are 73 million Americans who are uninsured, according to the 2021 Life Insurance Barometer Study by LIMRA and Life Happens. The same study says that 43% — or 31 million of them — are millennials.
This is a generation that’s building families and careers — meaning they’re in need of life insurance to replace lost income, cover debts and pay final expenses should a death occur. So, why don’t they have life insurance?
“I think when millennials hear ‘life insurance,’ they think funeral,” said Sales Representative Sarah Cope of Mayfield, KY. “Very few come into an appointment with an understanding of the financial benefits of beginning an insurance policy at a younger age.”
According to the Life Insurance Barometer, there are four misconceptions that Americans have about life insurance:
- Life insurance is too expensive: More than half of Americans overestimate the cost of life insurance by as much as threefold. This is especially true for younger generations. The cost of term life insurance for a healthy 30-year-old is around $160 per year. Yet, 44% of millennials estimate it to be more than six times higher — at a costly $1,000.
- Workplace life insurance is enough: 29% of American workers believe the coverage they get through work is enough. The median life insurance coverage offered at the workplace is either a flat sum of $20,000 or one year’s salary1. More than half of U.S. households rely on dual incomes (54%)2, and, for many, losing one income could be devastating to the households’ finances.
- It is too difficult to buy life insurance: Nearly half of Americans (46%) say they have put off purchasing the coverage they know they need. This could be, in part, because they are intimidated by the process.
- I don’t need life insurance until I’m older: Younger consumers who do not yet have a spouse/partner or dependents may believe they can put off buying life insurance.
Planning for the Future
What can be done to change that kind of thinking? Well, there are the numbers again:
- Life insurance is generally less expensive when purchased by younger individuals, who tend to be in better health than older individuals
- Nearly 40% of insured consumers wish they’d purchased policies at a younger age, according to the Life Insurance Barometer
And there are real-life experiences like Reanna Olive’s.
The 27-year-old mother of two from Mayfield, KY, knows what life insurance means. In fact, she had a head start because her dad purchased a product for her when she was a child.
“I wasn’t initially aware that my father had taken a policy on me until I was an adult,” Olive said. “I believe he saw the importance of planning for the future, and now, as a parent myself, I see the value.”
Just like Dad, Olive has already started her daughters on their life insurance journey. It’s all about looking toward tomorrow, which is also why she bought additional coverage for herself. Olive wants a future for Londyn, 5, and Lyric, 4, that isn’t darkened because of financial worry if she should die while they’re young.
“It is important to me that I plan for the unexpected,” Olive said. “In the event the unthinkable happens, I want to ensure that there are plans in place to provide for my daughters’ future.”
With that in mind, WoodmenLife and our Representatives stand ready to help members3 protect their families’ financial futures.
“Starting conversations with members and others to find out what’s important to them is essential to everything we do,” said Senior Vice President & National Sales Manager Charles R. Driffill. “When we listen and build relationships, we’re better able to provide the solutions people need.”
Working Together
That’s how it worked for Cope and Olive. Olive appreciated Cope’s ability to break down the features of different products and her ongoing availability to work with Olive as changes or questions came up.
“Sarah and I are both involved in a number of community organizations, so we see each other very often,” Olive said. “Anytime there has ever been a change that needed to be made, or something she would recommend, she always lets me know.
“It is comforting to know that she is always working with my family’s best interest at heart.”
Cope echoed Olive’s thought, saying their relationship is what makes things click.
“Reanna has been so fun to work with,” she said. “I believe she sees me as a friend and trusted resource in addition to her Representative.
“She quickly saw the value of how we can protect her family. And since our initial meeting, she has been a consistent source of referrals, allowing me to expand our membership and help more American families.”
Connecting With Millennials
When Cope first met with Olive, she evaluated her family’s situation and talked about future plans and aspirations.
“I find that when working with younger adults, it is important to fully explain to them how early planning can make a huge difference in their future,” Cope said.
Fittingly, a significant portion of her meetings with millennials focuses on education. This includes working through attitudes like “I have insurance through work.”
“It’s been my experience that once they understand how insurance products work, their posture toward insurance completely changes,” she said.
Cope believes young adults want to know how the solutions we offer will help them now. After all, they likely have time before they need retirement income or incur funeral expenses.
“I make it a priority to stress the value of life insurance when it comes to paying a mortgage, for example, so that a young widow isn’t forced to relocate her grieving family,” Cope said.
She added that helping a young member understand that life insurance is so much more than “funeral coverage” makes all the difference in the world. Cope also assures her members that she’s committed to meeting and evaluating their need for coverage in the future to make sure their financial situation is properly addressed.
Olive said she feels “10 times better,” knowing she’s addressed her life insurance needs at an early age. And it’s something she’d advise her peers to do, too.
“I’ve talked to several friends, and I’ve been surprised by the number of them that haven’t taken steps to plan for their future,” Olive said. “I’m so glad Sarah showed me how important it was.”
If you’d like to help the young adults in your life with life insurance, contact your Representative. They are ready to provide the solution they need.
WoodmenLife Extras4 Perfect for Young Adults
Repaying Student Loans
We can help you get closer to financial security through the WoodmenLife Student Loan Relief program, which offers the opportunity to apply for a $1,000 award to reduce the burden of student loan debt.
Family Legacy
WoodmenLife will provide $1,000 a month per orphaned child to pay for their care, until they reach the age of 19. If your child is a full-time, post-secondary student, the payments will continue until age 22.
Saving Money
Our discount program — Life’s Perks® — gives you everyday savings5 at more than 30,000 local and national retailers on items like travel, monthly cell phone expenses, club store memberships, rental cars, and more.
1. U.S. Bureau of Labor Statistics, 2020
2. Consumer Expenditure Survey, ibid
3. An individual becomes a member by joining our shared commitment to family, community and country, and by purchasing a WoodmenLife product.
4. WoodmenLife Extras are available to members. An individual becomes a member by joining our shared commitment to family, community and country, and by purchasing a WoodmenLife product. These extras are not contractual, are subject to change and have specific eligibility requirements, such as length of membership, number of qualifying members in household and/or qualifying event.
5. WoodmenLife has entered into sponsored marketing relationships with companies that agree to offer discounts to WoodmenLife members. WoodmenLife is not affiliated with these companies and does not administer these discounts for products or services.
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