Selling DI to Millennials
According to a 2019 study by the U.S. Bureau of Labor Statistics, the median age of the American workforce is under 42-years old, yet most disability insurance sales (and the sale of most elective insurances for that matter) are made to employed persons over the age of 45. We can then extrapolate that a majority of the insurance-eligible workers of this country are less than receptive to purchasing disability insurance. This discrepancy can be logically addressed that older prospects tend to have more experience, more means to pay insurance premiums and are more cognizant to physical breakdown and illness. It makes sense that those who are familiar with the fragility of the human body and those who can readily afford the coverage are more willing to purchase DI.
But this situation is cause for alarm for the disability insurance industry, and is in need of reform. The average person actively seeking disability coverage is past his/her physical prime. We see clients purchasing DI decades after they should start shopping for it, when they are no longer preferred or even standard medical risks. As insurance professionals, we have the ability to sway this issue, and make income protection insurance more attractive to younger generations and to a broader demographic.
Pitch DI early in a prospect’s career, and remember that disability insurance must be sold. It doesn’t sell itself. Millennials gravitate toward technology and social media marketing gimmicks, but online sales platforms are only beneficial to those who are familiar with the insurance itself, motivated to buy and are completely accepting of personal accident/health coverage. Now I am generalizing, but a big obstacle to selling to Millennials is that young people generally feel invincible, and are not easily convinced to purchase disability plans. Selling DI to younger clientele can be an uphill, but very necessary and rewarding battle.
A successful attempt to sell disability insurance to younger generations requires two key ingredients. The first is education. Does the client truly recognize the financial hazards associated with an unforeseen disability? Does the client understand the value and benefits of a comprehensive DI plan? The second step is self-relation and personally identifying with the need. Can the client see himself/herself in the horrific state of partial or total disablement? Does the client relate to losing the ability to earn an income, unable to pay bills and support a family?
These are the types of questions that must be asked, answered and explained when trying to introduce disability insurance to new clients. It also helps to use a “storyline” pitch. Create a dialogue to relate the story of someone (a client, a relative) that unexpectedly suffered a disability and faced financial devastation. Steer the story to the needs of the prospect so he/she can relate emotionally. Once the prospect personally identifies with the need for the insurance, he/she will enthusiastically be open to the sale.
Petersen International can help you with these and other ideas to tap you into relatively new and unexplored markets. Call (800)345-8816 to speak with one of our DI sales specialists.