Life Insurance :: Life insurance for Generation Y
The increased amount of youth born in the period of 1979-1994, known as Generation Y, today gets to the point when some of its representatives start thinking about insuring their lives. And it's time for the insurance companies to explain the benefits and principles of this insurance product form to the growing group of younger adults.
One study on insurance-consciousness of this group of people has indicated the Generation Y is responsible and willing to know more about insurance products and their benefits. Moreover, many Generation Y representatives are willing to insure their life shortly, which makes them more active then previous generations from the insurance perspective. An online poll has shown that 48% of Gen Y participants are willing to insure their life in three years, while 20% are looking forward to doing it within the current year.
Besides, a recent analysis has shown that these young people also have the financial abilities to insure their life properly. By 2010 the annual estimated gross income of Generation Y representatives has exceeded $3.5 trillion, passing that of baby boomers' by $500 billion.
But it's not right to assume that the financial abilities of these young adults will necessarily lead to purchase of life insurance product by Generation Y. However, another study has indicated that this age group becomes very interested in insurance products when provided with the basic details such as price and terms of a simple policy. Moreover, this age group is more willing to shop around and understand the difference between various features and policy types, which makes them more conscious insurance buyers than their older peers.
But sometimes Generation Y doesn't have the proper life insurance education to make firm long-term decisions, which are needed in this type of purchases. It was observed that many young people don't clearly understand the benefits of purchasing term, whole or universal life insurance products, and this makes them want to learn more. However, almost a half of respondents have told that they do not know where to get adequate and unbiased information form, as there are too many source both online and in real world that are advertising specific insurance providers or services.
What's interesting about Generation Y is that they want to know everything about the product they are buying, and if that's a sophisticated product like insurance, they want to be in full control of their coverage and benefits. They tend to not believe the ads and won't buy the very first policy they are offered with.
Some may think that it's too early fro Generation Y to think about insuring their lives, however it's not true. Many representatives of this generation are already looking forward to changing their marital status and that's where having your life insured really counts. Besides, while being young and healthy it's easier to get insured for a lower price and with better terms then at a later stage of your life. So it really pays off to get this type of insurance earlier in your life and rest assured that you got a very good policy for a reasonable price.