lifeinsurance77: Clearly life insurers have the right idea. Go where the money is or in the case of Millennials where it will be in the future. In fact Northwestern Mutual Life Insurance Company purchased robo-advisor LearnVest during the first quarter of 2015. Northwestern Mutual is not alone in its efforts to tap and understand Millennials. Both Mass Mutual and Pacific Life are involved in efforts to court Millennials largely through education. (For more, see: How LearnVest Works.)
Strange Bedfellows?
Strange Bedfellows?
This seems an odd combination at best, much like an old commercial showing a couple holding hands with one wearing an Ohio State jersey and the other wearing one from Michigan. Millennials are a savvy, educated group of consumers which also carries over to their consumption of financial products and advice. Life insurance should be a priority for those in this age group who have a need for the protection. Certainly for those who are married, have kids or others whose financial well-being would be in peril if they died. Life insurance is a key element in a financial plan. (For more, see: Advising FAs: Explaining Life Insurance to a Client.)
Beyond life insurance there is likely a desire to sell a wide range of financial products to this huge group of emerging investors. It remains to be seen how Millennials will react when they begin to delve into some of the investment and annuity products offered by these insurers.
How will the insurers justify their often high cost mutual funds against low cost alternatives from the likes of Vanguard? What type of educational material can they present that justifies these higher cost products? How will they convince these inquisitive, tech savvy young consumers that purchasing high cost annuities and life insurance products with an investment component (and generally high fees and surrender charges) is a good idea? (For more, see: A Financial Advisor's Guide to Millennial Clients.)
Back in my day many new college grads went into life insurance sales and were told to call all of their friends and relatives and sell them a policy. I suspect that this approach is not is good one with the Millennials. To their credit it appears that these insurers and others are not taking this path. (For more, see: How to Help With Millennials' Money Habits.)
Beyond life insurance there is likely a desire to sell a wide range of financial products to this huge group of emerging investors. It remains to be seen how Millennials will react when they begin to delve into some of the investment and annuity products offered by these insurers.
How will the insurers justify their often high cost mutual funds against low cost alternatives from the likes of Vanguard? What type of educational material can they present that justifies these higher cost products? How will they convince these inquisitive, tech savvy young consumers that purchasing high cost annuities and life insurance products with an investment component (and generally high fees and surrender charges) is a good idea? (For more, see: A Financial Advisor's Guide to Millennial Clients.)
Back in my day many new college grads went into life insurance sales and were told to call all of their friends and relatives and sell them a policy. I suspect that this approach is not is good one with the Millennials. To their credit it appears that these insurers and others are not taking this path. (For more, see: How to Help With Millennials' Money Habits.)
