To get millennials interested in permanent life insurance that accumulates cash value, for instance, it’s a good idea to explain what they can do with that liquidity. “With millennials, the best way [is] to talk about how you can use it before retirement, as well as the power of having a non-market-correlated asset in retirement,” suggests Jeff Spencer, an advisor at Penn Mutual’s Concord Wealth Management in Waltham, Mass. “We’re seeing a large number of millennials looking to buy income properties, and having a liquid account such as cash-value life insurance is great because [it provides] guaranteed tax-deferred growth and tax-free access to capital for down payments or collateral.”
Online tech isn’t just useful in making a sales pitch. To reach millennials, it’s become an important part of the entire process. “Our commitment to complete digitization required an overhaul of our products,” says Sachatello.
That overhaul included providing a range of services at unprecedented speeds. “By simplifying the steps a consumer takes to obtain a quote, and automating the underwriting process, we’ve been able to condense the application and approval process from several weeks to just a few minutes,” says Sachatello.
Spencer would agree. “Insurance products have adapted to the online market well,” he says. He cites applications that not only speed up the underwriting process but sometimes go so far as to eliminate the need for a medical exam. “You can complete the application from your mobile device and, if you meet the qualifications, have a policy issued overnight,” he says. “Even if you do go through traditional underwriting, the e-application process cuts down significantly on the time it takes to purchase a policy.”
This speedy online process will become more common in the future, says Spencer. “More companies will adopt completely paperless applications for different types of insurance,” he predicts.
Nothing Beats the Personal Touch
But others warn that the industry shouldn’t rest on its high-tech laurels. “The millennials are clearly more tech-savvy than prior generations, but they still want the face-to-face,” asserts Joseph Ventura, founder of Eden Advisory Services in Loudonville, N.Y.
Millennials like the “tech intro,” he says, but they soon find they need to converse with a human being to “address the nitty-gritty aspects of their planning needs,” says Ventura. “While millennials have grown up with the computer, they still often prefer to see a face rather than a chart.”
When meeting millennials in person, Ventura recommends a degree of informality. “Millennials do not want to see you in a jacket and tie. They’d rather see you in a sweater,” he says. Ventura often meets clients and prospective clients over a cup of coffee.
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