Life Insurance Protection a Key Need for Young People

More than 4-in-10 Americans said they don’t have enough life insurance protection, according to the 2023 Life Insurance Barometer. That number goes up to almost half for America’s youngest adults: 49% of Gen Z and 47% of millennials stated they either need to buy coverage or increase their existing coverage.

Compared to older generations, these generations are more likely to have young children and worry about things like:

• Leaving dependents in a difficult financial situation should they pass away
• Paying off a mortgage
• Paying off/reducing student loan debt

“I always felt so bad seeing GoFundMe requests on Facebook of people trying to pay for their family member’s funeral,” said Desarea Thompson, 31, of Dallas, TX. “I just thought that there needs to be something in place to protect resources and take care of these needs.

“Every time I saw something online or on TV, I said, ‘That’s not going to be my family.’”

So, Thompson set out to get her financial house in order.

“Life insurance protection topped her list, which is good thinking,” said Thompson’s WoodmenLife Representative Royce Traylor of Jacksonville, TX.

He added that other younger adults — whether they’re single, like Thompson, or married with children — should think like Thompson.

“At a younger age, in general, insurance premiums are lower,” Traylor said. “Age matters. As someone gets older, they could develop health problems that could make life insurance more expensive.”

And there’s the death benefit for loved ones — a fact that helped put Thompson’s mind at ease.

“If something were to happen to me, I wouldn’t have to worry about my mom,” she said. “She would be financially OK because I have life insurance.”

More Than Life Insurance Protection

Thompson met with Traylor, who conducted a Needs Analysis to help determine what solution would best fit her needs. Their discussion pointed to a My Choice IUL^® certificate¹.

Life insurance protection wasn’t the only thing Thompson was looking for. A product that had the potential to build cash value was a priority, too. The IUL addressed both.

The guidance from Traylor fit with the information Thompson, who works at Dallas Love Field Airport, found during her pre-meeting research online — something that experts said the industry needs to take advantage of.

“Educating young adults is key because no one is going to buy what they don’t understand. Year after year, people significantly overestimate the cost of life insurance, while citing expense as the top reason for not getting coverage,” said Maggie Leyes, Chief Creative Officer of the educational nonprofit Life Happens.

Another element of great importance to Thompson was having the opportunity to access² her certificate’s potential cash value. “I wanted to make sure I had that in case something came up,” she said.

Thompson was particularly interested in the upside potential³ of the IUL. This potential for cash value growth can come with either the indexed or fixed account options. For the indexed account option, the growth is linked to the performance of a designated index over a specific time period, up to a maximum cap rate. The fixed account option grows at a set interest rate.

She was also relieved by the IUL’s protection against a down market, which comes from a guaranteed 0% floor⁴. That means an IUL certificate’s interest rate will never be less than 0%, thus offering some protection in a fluctuating market.

Traylor said Thompson’s satisfaction in the IUL is similar to that of other younger adults he’s encountered.

“A significant advantage of the IUL is the potential to build cash value while leaving behind a death benefit for loved ones,” he said. “I recommend this product for younger clients because it offers permanent coverage as long as premiums are paid.”

Making Connections

Thompson has been happy with her IUL certificate because of the peace of mind she feels with life insurance protection and because she has access² to the product’s potential cash value accumulation. She’s been so happy, in fact, that she’s become a life insurance advocate. She has recommended her friends and family members get life insurance coverage for themselves and their loved ones because she wants them — including her 5-year-old goddaughter, Rose — to be protected like she is.

“If they get something set up for Rose now, time can work for her,” Thompson said. “It would be great to know that she’s going to be set.”

She knows Traylor will provide spot-on guidance, too, because of how helpful and attentive he’s been.

“Royce quickly answered any questions I had,” Thompson said, “and if he didn’t have answers, he found the answers.”

For his part, Traylor said building relationships is key to helping members be financially secure.

“Having a strong connection based on trust and communication helps members feel more secure and connected,” he said.

“With Desarea, I not only gained a client, but I also gained one of the sweetest friends anyone could ask for.”

To see if My Choice IUL is right for you, contact your WoodmenLife Representative today. If you’re not a WoodmenLife member yet, you can visit WoodmenLife.org/Find/Rep to find a Representative close to you.

Visit WoodmenLife.org/MyChoice to learn more about My Choice IUL.

1. Universal Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods.

This certificate could lose money. WoodmenLife will provide notification if the guaranteed monthly deductions and interests are expected to exhaust the plan’s cash values prior to the maturity date. This certificate is not guaranteed to stay in force until maturity based on minimum guarantees.

2. Loans and withdrawals will reduce the policy’s death benefit and available cash value. Excessive loans or withdrawals may cause the policy to lapse. A loan, withdrawal or surrender may be a taxable event. For tax advice, consult with your professional tax advisor.

3. IUL is not an investment. It is a life insurance policy product that provides growth potential through index interest crediting. You cannot invest directly in an index.

4. Guarantees are backed by the claims-paying ability of WoodmenLife.

Flexible Premium Adjustable Indexed Universal Life Certificates ICC18 8730 4-18, 8730 4-18 (XX).

All products may not be available in all states.

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