Most independent financial advisers (IFAs) say that younger consumers are not securing protection until it’s too late. It’s a reality that’s not only worrying because younger consumers are running the risk of not being protected should they become unable to work due to an injury or illness, but also slightly odd!
It’s slightly odd because in another recent post, we wrote how millennials are more likely to choose an income for life than a jackpot. In other words, millennials value the reassurance and stability provided by regular payments, so much so that they would opt to receive them over a lump sum jackpot.
So, if millennials understand the importance of ensuring all their financial obligations are covered each month, why are they not actively securing protection earlier in their lives – especially when most wouldn’t think twice about taking out insurance for their mobile phones?
As an industry, we need to boost the appeal of protection products to younger consumers. But how can we do that?
Here are a few ways:
1. Dispel the myths
In the first of our articles linked above, which references a study conducted by Royal London, we highlighted how 51% of IFAs believe cost is an obstacle when it comes to younger individuals taking out protection. Furthermore, 52% of IFAs said there is a lack of awareness around Income Protection among their younger clients.
There is a big opportunity here to kill two birds with one stone. By improving awareness around IP among younger clients, financial advisers will automatically show just how affordable it can be (often cheaper than a monthly gym membership).
During those same conversations, it would also be appropriate to discuss the ‘I’m young and healthy’ mindset many younger individuals have. Nobody knows what’s around the corner, so being prepared is the best we can do.
2. Connect on younger people’s terms
Social media is a huge part of younger people’s lives. They spend a significant amount of time on it each day, so it stands to reason that it’s an especially relevant platform on which to connect with them.
By reaching out and connecting via mediums that younger people are frequently active on and feel comfortable on, financial advisers stand a much better chance of highlighting the importance of protection.
The key is to communicate and engage on their terms (the younger individual’s). Join the conversations they are having and add value. Never just go straight in with a sales pitch.
3. Make it more relevant
The fact that younger people are not securing protection until it’s too late suggests they do not see it as a priority right now in their lives (rather something they’ll need later).
By highlighting the other benefits of IP now, such as counselling and rehabilitation support, advisers can begin to outline how protection can provide support on an ongoing basis and not just help when a claim is made.
A highly motivated result’s driven individual with a wealth of experience in the Healthcare & Group Risk market. I have established strong relationships with large multinational clients through excellent interpersonal skills. I have advanced listening, negotiating & influencing skills that allow me succeed in a team based environment. I have comprehensive knowledge of the UK Healthcare & Group Risk market. This knowledge has been obtained through the Chartered Insurance Institute & self study.