Polls show that many Americans know all too well that life insurance is an important part of sound financial planning. However, that may not be enough motivation for many people, especially younger Americans, to actually sign up for coverage. The good news for the industry is that there are plenty of opportunities to connect with consumers on this issue, and these efforts are now paying off with growing enrollment in this type of policy.
Earlier this month, the industry celebrated National Life Insurance Day, and used it as an opportunity to talk to consumers about the options they may have for coverage, according to a report from NBC News. This can be particularly important for younger adults, the vast majority of whom have never had life insurance coverage before, simply because they haven't felt like they've really needed it. However, those in the life industry know all too well that this kind of thinking can be dangerous, especially as millennials continue to age, amass wealth, and grow their families.
"If, let's say you're single, you don't have any dependents, no one is really counting on your money or assets, you probably don't need it," Laura Adams, an industry expert, told the news organization. "[But if] the parent [of a young child], even one of the parents, are not there to provide an income or to provide a child care, that really throws the whole family's financial situation off kilter."
A potential problem
Young people understand how important such coverage is. But they typically are not taking the step to buy it. The problem often arises as a result of misconception. One of the reasons most often cited in polls of people who don't have such coverage is that they think it's too expensive for them, even if they think they need it. Of course, this is another thing that life insurance industry insiders know but the general public does not: This kind of coverage can be extremely affordable for almost anyone.
Many experts advise that buying term life insurance, usually in the 20-year range, will probably suit even the most tenuous of budgets, the report said. That, in turn, can provide a serious financial safety net for cost-conscious young families that may otherwise feel they have no real coverage options available to them.
A little information goes a long way
Consequently, perhaps the most important thing that those in the life insurance industry can do to connect with consumers is simply explain to them the options that might be available to them. Often, if concerns about cost or the type of coverage available are the biggest issues, a frank discussion of the ins and outs of coverage can really help people to understand their actual positions. That, in turn, could make this type of coverage far more attractive than they might have originally thought.