The insurance industry is completely shifting as the largest generation on Earth are now millennials. Just like any industry, adjustments need to be made to keep up with demand and the needs of the market.
Unfortunately, the interests of millennials in regards to insurance are practically non-existent. Millennials are now the largest generation alive totaling over 80 million in population. Due to this size, they drive the nation’s overall home ownership statistics.
The statistics and research show that homeowners are on the decline. Why?
Student Loans
Limited Supply of Affordable Homes
Starting a Family and Owning that Perfect Home is not the “Millennial Dream”
America owes over 1.48 trillion dollars in student debt. Millennials are in over their head with student loans and opt to live with their parents to save and avoid digging themselves a deeper hole.
Home contractors and builders have picked up on this trend and are now focusing on building more luxurious and expensive homes that target the older affluent market.
In addition, the “American Dream” is not cut out for millennials. According to Science Daily, 25% of women born in 1940s were unmarried vs 81% of women born in 1990s are unmarried. Owning that dream home with a white picket fence is not as desirable as a laptop lifestyle traveling the world with no obligations to owning a home (or car).
Not to mention, there is a technological shift. The future of insurance is painted clearly through the use of AI. A man gets in his autonomous driving vehicle, relaxes as he enjoys the ride, the car does not stop properly while parking, damages the bumper, updates the passenger that he needs to takes photos of the damage, uploads photos to insurance carrier, and files the claim.
The decline of homeownership, increase in student loans, limited supply of affordable homes, the “Millennial Dream”, and the advances in technology may serve as huge gaps and problems within the insurance industry but they are actually huge opportunities.
Use Life Insurance to Pay Off Student Loans
The elephant in the room for insurance companies and millennials are students loans. How can someone afford to pick up a monthly payment for insurance when they are struggling to stay afloat with thousands of student loan debt?
Life insurance. It’s called a Universal Life Insurance Policy. In simple terms, this type of policy serves as a cash growth vehicle allowing you to take tax free withdrawals that can be used to pay down student loans.
If this is confusing and completely out of your scope of competence (it’s okay we understand), call us at 216-696-3000 and receive a free quote, consultation, and road map for the best solution.
Less Home Buyers, Less Worries
Due to student loans, prioritization of freedom, and lack of monthly income, home ownership is out of the question for most millennials.
However, renting and renter’s insurance is not. Most people who know about the costs of renter’s insurance compared to the coverage actually excites them. If you are not informed and excited, read this article.
You can expect to pay something around $15-20 a month for renter’s insurance and reap all these benefits:
Insure all personal belongings (even when you travel)
Personal Liability
Medical Payments
Additional Living Expenses
If you are unsure about what all these benefits truly mean, check out some examples or contact a licensed professional by getting a free quote on the total value of your stuff.
Future Opportunities in the Insurance Industry
Stock images with family, white picket fence homes, and children will not cut it any more. Especially when over 80% of women born in 1990s are not married. Not only are millennials not interested in buying insurance, they are not interested in pursuing career opportunities.
This may make sense if you look at the insurance industry as a dying market, but here is the reality: Insurance has been around since the 1760s, Warren Buffet is an owner of multiple insurance companies, technological advancements with cars create uncharted waters for everyone in the insurance industry.
It’s been around for over 200 years, everyone needs it (whether they know it or not), and there is a huge opportunity for millennials to help “aging” companies connect with other millennials by pursuing careers in marketing and sales positions.
In addition, insurance policies renew every year which means you get paid every time someone renews their policy. Talk about the life: reoccurring revenue while you sleep, play golf, or travel the world.
Also, insurance and coverage surrounding autonomous vehicles is extremely fresh. Everyone in the industry has question marks surrounding this topic which provides a huge benefit to any one who is willing to create a concrete solution.
I hope this articles helps shift your view of the insurance industry from bland, boring, and dying to a vibrant, filled with opportunities, and preferred career path for millennials.