The members of Generation Y – also called Millennials – who were born from 1980-2000 offer a different perspective than most generations. But one key difference with Gen Y according to LIMRA, is that their parents are key buyers of term life insurance so as to cover college expenses.
But as Gen Y’s are now facing life events such as new homes and children, they’re increasingly in a better position to understand their needs for life insurance. What do they want? Policies that aren’t necessarily expensive and confusing to them.
Because of their experiences with recent recessions and what may have happened to many of their parents, they say they wish to secure a future and will do more research on the best financial plan. Most also admit to being fearful of making such decisions.
A study by the Life Insurance and Market Research Association (LIMRA) found that “references from friends, relatives and coworkers are the most influential” when selecting a life insurance policy.
Among their various differences with the previous generation, they point to differing opinions on work, goals and stewardship of the environment.
· They aren’t looking for job longevity, though they will stay in a position if they have a great leader.
· They aren’t of the philosophy that hard work will pay off at a company because many have found that hasn’t worked out for their parents.
· Being able to use their core talents is essential
· Personal development is key
· Being trusted for their input and ideas
· They aren’t in it just for the money
· Flexible work hours to allow for more work-life balance
· They’re looking for loyalty, but only if they receive it in return
· Environmentally conscious
· They respond to internships – but not to monotonous tasks
The good news for the members of Generation Y is that life insurance premiums are currently at all-time lows and that insurance can offer low-risk security in replacing lost wages, helping pay off a mortgage and even paying for college expenses.
Here are five additional resources to help find the correct, and least expensive, options to purchase life insurance coverage:
– Best Practices When Buying Life Insurance