Milestones such as marriage and parenting are so delayed for millennia and the gene from many of them omitting for life insurance, finds a message | Luck
Given the rising cost of housing and wages that do not catch up with inflation, the Zers and Millennials gene delay the main milestones of life, such as buying a house or becoming a parent. In some boxes, they push these main milestones to enjoy life at the moment by traveling or large shopping.
This phenomenon affects financial decisions in other important ways. New CapGemini Message Shared exclusively Luck It shows that although almost 70% of adults under 40 years of age see life insurance as necessary for a healthy financial future, the possibility that does not currently equal with their financial priorities – in some cases they will completely give up.
Samantha Chow, Global Life Insurance, Annuits and Benefith Sector in infots and consulting CapGemini, said Luck That the Z and Millennials gene get life insurance if super cheap or free. But for the fact that they have to pay for it if they still can’t afford to buy a house, it doesn’t make sense to them.
“Later, later, not (makes) a financial decision, such as (buyer) a house or something of this nature,” she said. “They tend to postpone Eith more, as in 401k, or tend to open their type of investment account and take this extra money and postpone it.”
The study, which was conducted together with Limra, was based on a survey of more than 6,100 people aged 18-39 years at 18 markets, 200 senior insuroma executives in 18 markets and macroececonomic predictions developed in cooperation with Oxford Economics. The results show that 63% of these consumers have no immediate marital plans and 84% of individual and married people have no immediate plans for a child.
Gen Z and Millennials want “live” benefits
The traditional insurance insurance policy is basically a financial contract between an individual and an insurance company that allows the user to make regular payments (bonuses). In return, the insurer promised to pay the amount of money (aka benefits of death) name of the user called Benficariaries at the time when the insured person died. They are usually used to cover things such as funeral costs, debts, live expenses or even education or on a mortgage.
However, there are other additional life insurance functions called “lively benefits” that the insured can use when they are still alive. One of the living advantages includes the accelerated benefits of death, let’s say that if the insured should be diagnosed with the terminal disease. But other benefits, such as access to monetary value, have the insured borrow or withdraw from their policy during their lives. This could allow the insured to make large purchases such as buying a house. Even Chow said she used her life insurance to buy her first house.
“I bought my first life policy at the age of 21. I paid almost cash for my first home,” she said. “I just pulled it out of money. But no one explains it to people.”
This gets into the core of the problem: many members of younger generations do not realize or understand that these live infits may be available.
“You give us so much money for this love for time, it is a Gooir that builds money. This is not very complicated,” Chow said. “But how can you use it when you can use it, a thing you can use, what happens when you do these things versus something else, how it affects the future. This is the part that is too complicated.”
While some insurance carriers offer live benefits, 1 of 4 consumers still reject life insurance because the process is too confusing and complex jargon makes understanding and use according to the CapGemini study.
The life insurance industry has to change
Thanks to 124 trillion trillion dollars Great Wealth Transfer, Millennials and Gen expect an average heritage of $ 106,000 per person. As a result, life insurance is a “important goal” for these funds, according to Capgemini. Of the people, 40% have overlapped life insurance and the third most important place for their inheritance, for shares and cash savings annually.
To prepare for generations with different approaches to savings, investments and finance, the life insurance industry must change, Chow, who has worked in the insurance industry for more than 25 years.
“We have failed 1,000 times,” Chow said about the insurance. “We will not educate you at the time you go through the selection of your benefit.”
Chow also claims that life insurance must become a rather flexible financial product such as savings or investments.
“It was a financial product. It must meet the needs of critical illness, buy a house, pay for your child’s college in the future. It must be an all-in-one type, a flexible product that grows with your life.”
(Tagstotranslate) CapGemini (T) Gen Z