Members of Generation Y, also known as Millennials, were born between 1980 and 2000 and have a different perspective than previous generations. According to LIMRA, one key difference with Gen Y is that their parents are major buyers of term life insurance to cover college expenses.
However, as Generation Y faces life events such as new homes and children, they are increasingly in a better position to understand their life insurance needs. What do they desire? Policies that are not necessarily costly and perplexing to them.
They say they want to secure a future and will do more research on the best financial plan because of their experiences with recent recessions and what may have happened to many of their parents. Most admit to being nervous about making such decisions.
According to a study conducted by the Life Insurance and Market Research Association (LIMRA), “references from friends, relatives, and coworkers are the most influential” when it comes to choosing a life insurance policy.
Among their many differences from the previous generation are their views on work, goals, and environmental stewardship.
- They are not looking for job stability, but they will stay in a position if they have a great leader.
- They are not of the mindset that hard work will pay off at a company, as many of their parents have discovered.
- It is critical for them to be able to use their core abilities.
- Personal development is essential.
- Being trusted with their ideas and input
- They aren’t in it for the money.
- Flexible work hours to improve work-life balance
- They seek loyalty, but only if they are rewarded for it.
- Concerned about the environment
- They are interested in internships but not in monotonous tasks.
The good news for Generation Y is that life insurance premiums are currently at an all-time low, and insurance can provide low-risk security by replacing lost wages, helping to pay off a mortgage, and even paying for college expenses.