First, the good news. Based on the information from the US Census Bureau, over 90% of the population had health insurance in 2019. Only 8% didn’t have any at any point during the year.
The number of individuals covered by employee-sponsored insurance also increased. It slightly rose to 55.4% from 55.2% in the previous year.
However, the data also revealed that about 25 million people remained uninsured. Meanwhile, Policy Genius shared that only 54% of Americans owned a life insurance policy. Most of those who don’t include the millennials.
Why Are Millennials Not Getting Insurance?
The millennials or the Y generation are men and women born during the early 1980s and the late 1990s. They followed Generation X. Based on the years, these millennials are already between 25 and 40 years old.
Millennials have been a subject of plenty of economic and social studies because they now account for the biggest demographic group. In the United States, they numbered 72 million in 2019. By 2033, it will increase to 75 million.
In fact, their group is so large that they are already overtaking that of baby boomers. By 2028, the latter’s population would have declined to fewer than 70 million, according to Pew Research Center.
Millennials also have a strong influence on consumer spending as many are already working and starting families. And yet, one of the products they seem to be not fond of is insurance.
In a 2018 survey by the TransAmerica Center for Health Studies, of the thousands of uninsured individuals, 16% were members of the Y generation. Since 2016, their rate of uninsured continues to climb, eventually overtaking that of Generation X and the baby boomers.
Other information revealed that Medicare coverage also went down from 3% to 2%. The insurance purchased through the Affordable Care Act marketplace or someplace else also declined from 14% to a staggering 7%.
Why are millennials not buying insurance policies? Many factors affect their decisions:
One of the most significant barriers for millennials is cost. Morning Consult revealed that nearly 50% of them skip or delay seeking medical care since they cannot afford it. While the best step would have been to buy insurance, another survey suggested that plenty find insurance policies expensive.
2. Lack of Understanding
A TransUnion Healthcare study cited that at least 50% of the millennials don’t understand health insurance policies. They found these contracts to be both complex and confusing, according to the IBM research.
For these reasons, millennials may not be able to take full advantage of the benefits of their health insurance policies. If the misunderstanding stems from misinformation, then the Y generation will have difficulty trusting agents and any insurance policy.
How Can Insurance Agents Help Millennials?
Health insurance can help drive down the cost of medical care and even ease the economic burden. Life insurance, meanwhile, guarantees the deceased’s beneficiaries can survive financial problems when they lose their source of income.
These are the benefits many millennials forego the longer they remain uninsured. Fortunately, insurance agents can improve their marketing strategies to encourage them to get covered:
1. Improve Their Online Presence
The best insurance websites are dynamic. They are not only beautifully designed but are also rich in value-added content. They provide an accessible and comprehensive portal for agents to perform and track their marketing efforts.
For example, they can launch e-mail marketing campaigns to help educate millennials. They can understand the benefits and learn how to weigh their options to make informed decisions.
Most of all, these sites are mobile-friendly. Compared to other generations, over 80% of millennials own and use a mobile device, and they use it for various activities.
That includes searching for information and shopping. In fact, Google’s research revealed that 55% would ignore brands that won’t appear on their searches.
2. Emphasize the Value of an Insurance Policy
Insurance companies can create a variety of bundles to fit the needs and budgets of millennials. But they can also work on focusing value over cost:
- Millennials may consider buying term insurance, which is significantly cheaper than investment-linked insurance. They can renew it until they feel they no longer need it.
- Insurance agents can stress the significance of getting a health insurance policy early. That is, the premium is usually much lower than when they’re already older. Moreover, the risk of denial is low since they’re likely to have chronic diseases.
- Agents can pair both life and health insurance or offer cost-effective add-ons like an accident benefit.
The millennial generation is a huge untapped market for the insurance industry. But if they want to capture their attention and convert them into their clients, they need to address the group’s biggest concerns.