Foresters
Market Report:
Term Life
Insurance
Maximize your sales efforts by
aligning the needs of Millennials with
the benefits of term life insurance.
Defining Millennials
The Millennial generation, also known as Generation Y, is broadly defined as individuals born between the early 1980s and the early 2000s. For the purposes of this report we will consider those between the ages of 18 to 34 in 2015 a Millennial.
Benefits of Term Life Insurance for Millennials
Low cost and flexibility of coverage are what make term life insurance an excellent choice for Millennials.
Term life insurance is generally a more affordable option. This can be attractive to a younger cohort that may not have the financial resources or the desire to purchase a more expensive permanent life insurance policy.
Many term life insurance products can be expanded with riders. Disability protection and income replacement can provide the living benefits that may help some Millennials see the value in purchasing life insurance. Plus term life insurance can generally be converted to permanent coverage without the need for additional underwriting. This helps protect against future uninsurability should there be a change in health down the road.
Explaining Term Life Insurance to Millennials
Term life insurance can be an affordable starting point on the path to financial security. This is especially true for younger clients who may not have the financial stability to purchase more expensive and complicated products, such as permanent life insurance.
Many of your younger clients will appreciate the fixed term protection offered by term life insurance. Term can be considered a great option to cover
dependents, a mortgage or even school debt.
Why?
In 2015, Millennials are projected
to be the largest living generation
in the US (yes, even bigger than
Baby Boomers).
1Millennials are a
demographic life
insurers simply
cannot ignore.
Millennial Market – Target and Scope
Age
18-34
Status
26% are married 69% of those not married do eventually want to get married2
36% have children3
Income
Median household income of
$61,000
4Millennials have higher levels of student debt and lower levels of wealth, compared to Gen X and Baby Boomers at the same life stage2
Market Size
• 50% are politically unaffiliated2
• 29% identify as religious2
• America’s most racially diverse generation2
• Millennials are heavy internet users and tend to research online prior to purchasing. They are very active on social media, with 81% using Facebook.2
• On track to be the most educated generation to date
• 86% live in metropolitan areas4
• Comfortable with self promotion and relationship building online5
Quick Stats
75,300,000 Millennials in 2015 and will peak at 81,100,000
individuals in 2036, due to projected immigration
1Appetite for Term
62% of all life insurance bought in 2013 by Millennials
was Term
6Perception of financial services
Lack confidence in financial institutions and are
pessimistic about their financial future
7.
How to Communicate to Millennials
Where to find them
Millennials are resourceful and savvy when it comes to shopping online, and that includes shopping for life insurance online.
Understanding how to market your business online through search engine marketing, search engine optimization and social media marketing will play a key role in reaching this audience.
How to Sell Term Insurance to Millennials
Don’t simply talk about product benefits. The best way to reach Millennials is to tell a story. When you are trying to communicate the benefits of term life insurance, you need to evoke an emotional response in order to get through. Beyond the typical life triggers like having children or mortgage protection, here are some other ways to meet Millennial needs with term life insurance.
Millennials who are interested in doing business with you will search for your Twitter handle, LinkedIn profile, Facebook Business page, and your website8. Without
these, you don’t exist.
Speak their language
Millennials have grown up during a time of rapid technological innovation.
As a result, they have an expectation of innovation and creativity in their daily lives.9
Advisors who have a grip on modern communications, like texting and social media, may have an easier time speaking their language and communicating through mediums familiar to Millennials.
Millennials are not looking for an in-home visit. They would much rather communicate over the phone or online using your website (which must be mobile friendly)10. Try
following up after an initial meeting with a text message instead of an email.
Scenario: Leverage your Baby Boomer clients
Target: Younger Millennials with student debt
Story: Selling term life insurance directly to an 18 or 19 year old may be a tall order. Their appetite for life insurance as well as their ability to afford it is most likely limited. The solution? Sell insurance to your current Baby Boomer clients who have Millennial children.
Your Baby Boomer clients may be co-signers on student loans, rental
agreements or other financial obligations for their children. If their child were to pass away or become disabled, your clients could be on the hook for their children’s debt. Dealing with the loss of a child is an unimaginable hardship. Removing or reducing the burden of their debt will be a welcomed relief during a time of need.
A term life insurance policy with a disability income rider can be the living benefit Millennials need. In the event of a disability, your clients can keep up with rent payments and other bills to help maintain their lifestyle until they become healthy again.
Scenario: Protect a lifestyle in the event of a disability
Target: Millennials without dependents or a mortgage
Story: The scary truth is that only 13% of Millennials have some form of disability insurance11. The issue is many think life insurance is only for
major life events like buying a house or having children. However, lifestyle and paycheck protection are good reasons for term life insurance.
Foresters Market Report: Term Life Insurance 6
1 Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014 2 Pew Research Center (www.pewsocialtrends.org/2014/03/07/millennials-in-adulthood)
3 Pew Research Center (www.pewsocialtrends.org/2011/03/09/for-millennials-parenthood-trumps-marriage)
4 Pew Research Center (www.pewresearch.org/fact-tank/2015/03/19/how-millennials-compare-with-their-grandparents) 5 Tech Target (whatis.techtarget.com/definition/millennials-millennial-generation)
6 LIMRA 2013 Annual U.S. Individual Life Insurance Sales Supplement Survey
7 http://news.executiveboard.com/2014-07-10-Millennials-Set-To-Be-A-Lost-Generation-For-Financial-Services 8 http://www.lifehealthpro.com/2014/09/11/5-ways-to-sell-life-insurance-to-millennials
9 The White House: 15 Economic Facts About Millennials – The Council of Economic Advisors October 2014 10 http://www.lifehealthpro.com/2014/09/11/5-ways-to-sell-life-insurance-to-millennials
11 http://time.com/money/3178364/millennials-insurance-why-resist-coverage/
12 Insurability depends on the answers to a few medical and lifestyle questions and an underwriting review, based on underwriting requirements and guidelines. 13 Foresters Lifefirst Term and its riders may not be available or approved in all states and are subject to eligibility requirements, underwriting approval, limitations and
state variations. Refer to the product guide and insurance contract for the applicable state for details.
14 This rider is not available for certificates issued with a base face amount of less than $50,000. On certificates where the insured’s issue age is higher than 75 or issued
as sub-standard, Terminal illness, where available, will be the only eligible illness issued. Not available in CA, CT, or NY.
15 Premiums paid for the Disability Income Rider (Accident Only) and Disability Income Rider (Accident and Sickness) may be refundable on death, less any benefits that
may have already been paid under this rider.
16 http://www.millennialmarketing.com/who-are-millennials/
17 Foresters member benefits are non-contractual, subject to eligibility requirements and limitations and may be changed or cancelled without notice.
Foresters Lifefirst and its riders may not be available or approved in all states and state variations may apply. Foresters Lifefirst and its riders are filed under the form numbers listed below, where “XX” represents either “US” or your state’s postal abbreviation, as applicable.
Foresters Lifefirst: ICC13-TERM-LF-US01, TERM-LF-XX01-2013 or TERM-LF-NY02-2013; Family Health Benefit Rider: FHB-XX01-2007 or FHB-NH02-2007 Common Carrier Accidental Death Rider: CCADR-US01-2007, ICC13-TERM-CCADR-US01 or TERM-CCADR-XX01-2013; Critical Illness Rider (Accelerated Death Benefit): SI-CIR-XX01-2006or CIR-IL01-2008; Disability Income Rider (Accident & Sickness): DISR-XX01-2007;
Disability Income Rider (Accident Only): SI-DIR-XX01-2006 or SI-DIR-MN02-2006; Waiver of Premium Rider: ICC13-TERM-WPR-US01 or TERM-WPR-XX01-2013 Children’s Term Rider: ICC13-TERM-CTR-US01 or TERM-CTR-XX01-2013;
Accidental Death Rider: : SI-ADR-US01-2005, ICC13-TERM-ADR-US01 or TERM-ADR-XX01-2013
For licensed insurance producer use only.
Not for use with consumers. 412436 US (05/15)
Comprehensive suite of living benefits
Member Benefits
Millennials are community-focused and embrace purpose-driven organizations16.
Foresters member benefits17 perfectly align
with these values by providing members with community granting funds to organize a variety of volunteer activities with
organizations like the American Red CrossTM and Ronald McDonald House
Charities (RMHC®).
Built-in Accelerated Death Benefit Rider14 at no
additional premium
Chronic Illness – up to 24% for any 12-month period, up to 95% Critical Illness – up to 95% to a maximum of $500,000 Terminal Illness – up to 95% to a maximum of $500,000 Also available at an additional premium
Disability Income Rider15 –
This rider covers disability due to either sickness or accidental bodily injury. Foresters allows two independent claims.
Plus...
Non-Medical underwriting up to $250,000
• Available on 20-, 25- and 30-year term
• No medical exams12, no fluids, no APS, no routine
Personal Health Interviews (PHIs)
• Seamless e-App process as well as real-time point-of-sale eligibility decisions to help you get paid fast
Foresters
Lifefirst Term
13
For more information, visit
foresters.com
or call our
Sales Support team at 866 466 7166, option 1
Foresters™ is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society; its subsidiaries are licensed to use this mark. 789 Don Mills Rd. Toronto, ON M3C 1T9 Canada
Medical Underwriting available
• Available on 10-, 20-, 25- and 30-year term • Preferred Plus Non-Tobacco , Preferred Non-
Tobacco, Standard Plus Non-Tobacco , Standard Non-Tobacco, Standard Plus Tobacco, Standard Tobacco underwriting classes available