Page 42 - The Insurance Times February 2025

Life Insurance

Addressing Misconceptions and Building Trust

Introduction provals, can be off-putting for a generation accus-
tomed to instant online transactions.
Millennials, individuals born between the early 1980s and
the mid-1990s, represent one of the largest and most influ-
ential consumer demographics today. This tech-savvy gen- Strategies to Market Life Insurance Effec-
eration is characterized by unique financial habits, a pref- tively to Millennials
erence for experiences over material possessions, and skep-
To engage millennials, insurers must address these miscon-
ticism towards traditional financial products. Life insurance,
traditionally perceived as a complex and long-term commit- ceptions and adapt their offerings to align with the
ment, often fails to resonate with millennials. Many associ- generation's values, lifestyle, and communication prefer-
ate it with older generations, unnecessary expenses, or an ences.
investment they can delay.
1. Simplify Products and Communication
To address these misconceptions and build trust, insurers Transparent Offerings:
must rethink their strategies and tailor products, communi- Simplify policy structures, clearly outlining benefits,
cation, and distribution channels to meet millennials' distinct costs, and exclusions. Avoid jargon and provide ex-
preferences. amples of how policies work in real-life scenarios.
Customizable Policies:
Common Misconceptions about Life In-
Offer modular life insurance plans that allow millennials
surance among Millennials to add or remove features, such as critical illness riders
1. "I'm Too Young to Need Life Insurance": or accidental death benefits, based on their changing
o Many millennials believe life insurance is only for needs.
older individuals or those with dependents. They Educational Content:
overlook the cost benefits of purchasing a policy Create engaging blogs, videos, and infographics explain-
when young and healthy. ing life insurance basics. Platforms like YouTube,
2. "Life Insurance is Too Expensive": Instagram, and LinkedIn can be used for bite-sized edu-
o Millennials often overestimate the cost of life in- cational content.
surance. A study by LIMRA and Life Happens re-
vealed that many believe life insurance costs three 2. Leverage Digital Platforms
times more than it actually does. Online Purchase Options:
3. "I Don't Have Dependents, So I Don't Need It": Millennials prefer convenience. Provide user-friendly
o Single millennials without children might not see websites or apps where policies can be researched,
the relevance of life insurance, ignoring its poten- compared, and purchased without extensive paper-
tial role in covering debts like student loans or en- work.
suring their parents aren't burdened financially. AI and Chatbots:
4. "It's Complicated and Time-Consuming": Use AI-driven chatbots to guide users through the pur-
o The traditional process of buying life insurance, in- chasing process, answer queries, and offer personalized
volving paperwork, medical exams, and lengthy ap- recommendations.

38 February 2025 The Insurance Times