As the American consumer landscape becomes more diverse, it’s imperative for life insurance companies to adjust their marketing strategies to reach this changing demographic, especially the younger generations, effectively. The concept of life insurance may not naturally appeal to this group. However, it’s more vital than ever to enlighten younger consumers on the importance and benefits of life insurance, fostering an understanding of long-term security. Expanding their perception of life insurance can boost the industry’s relevance and growth among this increasingly diverse demographic.
A third of young Americans feel unprepared to manage their finances (33% of Gen Z and 36% of millennials).
“One of the most overlooked benefits of purchasing insurance at a young age is the ability to lock in your future insurability,” said Matthew Carbray, a CFP® professional with Ridgeline Financial Partners/Carbray Staunton Financial Partners in Avon, Connecticut, in an interview. Carbray said he thinks purchasing life insurance in your 20s is a very good idea to lock in your insurability. He said you can protect current and future liabilities for a negligible cost with term life insurance. If you wait until your 40s, your premiums will be higher because you’re older and risk being less insurable.
Reaching out to and educating younger, culturally diverse consumers effectively is key.
Carlos Sapene, a multicultural marketing expert at Los Angeles-based agency Wicked Bionic, states, “Insurance companies must craft culturally appropriate messages that resonate with each generation’s core values and experiences to achieve successful results.”
MassMutual and other leading insurance companies are taking great strides to include younger, diverse audiences in their strategies. By educating these generations now, the industry can shift the perception of life insurance from being an older generation’s concern to an essential part of long-term financial planning for all.
In conclusion, it is both a smart and necessary move for insurance companies to include younger, diverse consumers in their market strategies. These efforts will help secure these individuals’ financial future and shape the insurance industry’s future, enabling it to stay relevant in a rapidly changing demographic landscape. For more information about advertising to GenZ and Millenials, contact Wicked Bionic.