According to a 2015 Barometer Study conducted by LIMRA, Millennials overestimate the cost of buying life insurance by 213%, and Gen Xers overestimate the cost by 119%. Wow. These facts are truly shocking. With these startling statistics, I began to wonder how such a drastic overestimation has occurred.
Then I realized I had never heard an advertisement mention price, nor has anyone divulged how much they pay for their life insurance to me. Is the cost of life insurance a taboo topic? Why is the price not discussed if it is so affordable?! I confess, before not too long ago, I had no idea what life insurance would cost. I am a Millennial and was (and most likely still am) part of that group that overestimates by 213%.
A coworker mentioned hearing a few commercials indicate a price or ballpark but confessed they were on TV channels that show programs targeted for a slightly older audience (Gen X). That could explain the 94% difference in the amount by which the two generations overestimate life insurance. To that I say why not let us Millennials have some life insurance commercials!
I realize it is hard to talk about price when it varies so much based on the amount of coverage, type of products, and the health of the policyholder, but a ballpark would be a great starting point to clear up the miscommunication around life insurance’s affordability. Because that is what we have here. A miscommunication or a lack of authentic language used around insurance in general.
A coworker mentioned that for a few coffees a month I could afford life insurance. Geez, get someone out in front of Starbucks to tell me that. Even better, for every Starbucks that is built, put in a life insurance kiosk. I am kidding, of course, Starbucks would never allow that, but my point is real. Start telling Millennials (and Gen Xers) what to expect with clear and straightforward language that mentions price. More insurers need to communicate the message to a broader audience, train the agents to use that message, and use marketing to break through these misconceptions.
Easier said than done, but the same study found that “nearly one third (30 percent) of Americans believe they need more life insurance. However, the majority of Americans (54 percent) say it is unlikely they will purchase life insurance within the next 12 months.” There is a huge market here waiting to be told why they should not put off making that purchase.
Good luck insurers. I look forward to someone inventing that kiosk and helping me realize the affordability of life insurance.