We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Millennials walking financial tightrope without safety net of life insurance

    October 9, 2018 by Brian Anderson

    A new survey unveiled at last week’s InsureTech Connect event in Las Vegas finds Millennial families are not buying life insurance at nearly the pace of previous generations.

    The survey by SE2, a technology and third party administration company focused on the North American life and annuity insurance industry, indicates that heavy financial burdens and deep confusion about financial planning choices are two of the primary causes. The result is that more families find themselves at risk of financial collapse. With October being Financial Planning Month, the release of the new study is timed to help bring awareness to this troubling trend.

    The survey of 1,032 Millennial families, commissioned by SE2 reveals:

    • 65% of millennial families think about their financial futures daily
    • Only 43% have purchased life insurance — even though 78% say their parents have it
    • 23% of respondents said they would be forced to file bankruptcy if their family’s primary breadwinner died
    • An additional 37% said the death would cause their family financial hardship.

    “Millennial families are under a lot of pressure. They face more student loan debt and other financial obligations than previous generations, said Vinod Kachroo, CIO of SE2. “They also face a more complex and confusing set of financial planning choices with the disposable income they do have. That can lead to a kind of paralysis – where Millennials worry for their futures but don’t take the actions necessary to secure greater peace of mind.”

    Student loan debt and other financial burdens weigh heavily

    When Millennial families were asked the primary factors in their decision not to purchase life insurance, less than 10% said they were simply uninterested in insurance or did not see its value. In fact, 56% said they want to buy insurance in the future. For most, debt and other financial concerns were the biggest reasons for deferring the decision.

    Specific reasons cited for not purchasing insurance include:

    • Student loan debt, 30% of respondents
    • Saving for a home, 29%
    • Mortgage payments, 19%
    • Couldn’t afford life insurance, 30%

    A complex set of choices and lack of financial education create paralysis

    Beyond competing financial considerations, Millennial families also face a complex set of financial planning choices, which can lead to confusion and paralysis in decision-making. A limited understanding of life insurance was evident throughout the survey results:

    • 46% of respondents said they would be more likely to purchase life insurance if they were more knowledgeable about it
    • 23% said that life insurance was for older people
    • 18% complained that life insurance was too difficult to obtain
    • 10% said they did not know how to acquire life insurance

    “Millennial families are less likely to have a trusted family insurance agent or financial planner than in previous generations,” said Kevin Paulson, COO of SE2. “They are more likely to consult online resources – which can be a bit overwhelming, like drinking from a fire hose. This survey indicates that Millennial families may be lacking in necessary education about life insurance as a result.”

    The path forward: Inexpensive, customized products and a simplified process

    A bright spot in the survey results was Millennials’ attraction to newer insurance options that appeal to their lifestyles, technological savvy, and price sensitivity. This suggests a path forward for insurance providers who wish to capture the millennial market.

    Specific features that respondents said would make them more likely to buy insurance include:

    • Customized plans for millennial households, 28% percent of respondents
    • An online application process that could be completed in a few minutes, 25%
    • Incorporation of fitness wearables to track health and reduce premiums, 21%
    • Inexpensive plans that fit their budgets, 32%

    “Ultimately, this study is encouraging because it tells us that Millennial families do value insurance. With all their other financial concerns, they just haven’t spent a lot of time thinking about it,” Kachroo said. “Typically, once Millennials learn how much lower insurance rates can be for younger people, they realize the cost doesn’t have to be a deal-breaker.”

    Added Paulson: “It falls upon the insurance industry to meet Millennials where they are by creating products, tools and processes that connect with how they live and buy financial products today.”

    The nationwide survey conducted in 2018 surveyed 1,032 millennial families. Millennial families were defined as multi-person households with either a spouse, live-in partner or children. Participants were ages 22 to 37.

    About SE2: SE2, an Eldridge Industries portfolio company, is a leading technology and third party administration company focused on the North American life and annuity insurance industry. SE2 has an unmatched track record in optimizing back-office operations to future-proof insurance companies. SE2 combines peerless industry domain knowledge with a leading-edge administration technology platform to help clients launch products rapidly, improve efficiencies, shift to a variable cost model and maximize profits while dramatically improving the customers’ experience. SE2 supports more than 20 direct clients, represents more than 35 carriers in North America and services more than 1,000 life and annuity products. SE2 has approximately $100 billion in assets under administration and has been recognized as an industry-leading innovator. Visit SE2 at www.SE2.com or at LinkedIn to learn more.

    Originally Posted at Insurance-Forums on October 8, 2018 by Brian Anderson.

    Categories: Industry Articles
    currency