Study: Millennial families want life insurance tailored to them

PROVIDENCE – Burdened by student loans and other concerns, young “millennial” families are buying less life insurance than previous generations, but they are willing to consider it if policies are tailored to them, a recent survey found.

Millennials are more open to new life insurance options that appeal to their lifestyles, are technology savvy, and include price sensitivity, according to the survey of more than 1,000 millennial families commissioned by SE2, a technology and third-party administration company focused on the North American life and annuity insurance industry.

The findings:

• Forty-three percent said they have bought life insurance, although 78 percent said their parents have it.
• Twenty-three percent said they would be forced to file for bankruptcy protection if their family’s primary income earner died.
• Twenty-eight percent said they would be more likely to buy life insurance if offered customized plans for millennial households.
• Twenty-five percent said they would be more likely to buy if there is an online application process that could be completed in a few minutes.
• Twenty-one percent said they would be more likely to buy if provided with fitness wearables to track health and reduce premiums.

“Millennial families are under a lot of pressure,” Vinod Kachroo, SE2’s chief information officer, said in a statement. “They face more student loan debt and other financial obligations than previous generations. They also face a more complex and confusing set of financial-planning choices with the disposable income they do have.”

However, the survey results offer some hope for the industry.

“Ultimately, this study is encouraging because it tells us that millennial families do value insurance,” Kachroo added. “With all their other financial concerns, they just haven’t spent a lot of time thinking about it. Typically, once millennials learn how much lower insurance rates can be for younger people, they realize the cost doesn’t have to be a deal-breaker.”

Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.