Numerous polls have suggested that millennials are the most underinsured generation since the war. They don’t have the disposable income of other age groups and are often more preoccupied with paying off tens of thousands of pounds in student loans.Research has shown that cost isn’t a major barrier to buying insurance, it’s more likely that millennials fail to see the need for it, as fewer of them have a mortgage or a family to protect.
For them, independence from their families tends to come later in life; they are more likely to be financially dependent on their parents for much longer. Mortgages can be harder to get and couples are marrying later in life, often postponing having children until they can get onto the housing ladder, which may not happen until they are in their 30’s.
Profile of a typical millennial policyholder
Unsurprisingly, the majority of those with an individual insurance policy, rather than insurance that may be provided by an employer group scheme, tend to be in their late 30’s and married or co-habiting. Around 80% have children. In contrast, those without life cover tend to be aged under 30, with one in five living with a partner and just 8% having children. What these figures show is that the traditional milestones, like getting married and starting a family, continue to act as the important triggers to purchasing life cover that they have always been. Insurers exploring new approaches to cover.
With millennials often having little disposable income, shorter-term, less expensive protection policies are likely to prove more attractive. In an economy where jobs for life are a distant memory - it’s been estimated that today’s young people could have 10 or more jobs during their working lives - then policies that protect against illness or accident over shorter timescales will be more in demand.
Many insurers are actively considering how to construct a range of protection policies that offer flexibility, are shorter-term than traditional plans, and take account of the financial needs of this generation. How these policies are delivered is vitally important too. Almost half of UK millennials want to do their financial planning on a smartphone. However, only 16% of UK respondents were in favour of technology-only planning where there was no human interaction, or a solution that was technology-led, but offered some human interaction supporting it.
The help we provide
Naturally, we make use of the most up-to-date industry technology to serve our clients’ needs. But for us, technology is a means to an end, not the end itself; we are only ever a phone call away, and will always be happy to deal with queries or concerns, and believe in offering a truly personalised service to clients. So, if you need help finding the right protection policies for your lifestyle, then do get in touch.
As with all insurance policies, conditions and exclusions will apply.