The digital natives – Millennials and Gen Z sum up 46% of India’s workforce. This generation has outdone all previous generations – be it in terms of income, investment or savings. Owing to their bench strength, their preferences have the power to shape the world of life insurance. 

With the easy availability of life insurance options online, this generation is spoilt for choice when it comes to choosing the best plan for their future. Speaking out of experience, Ridhima Agarwal, an eight-year MDRT member from Dehradun, India, says, “Financial advisors must reshape their strategies in order to cater well to the ever-evolving needs of this generation. Doing so is the only way to build a successful and long-standing relationship with them.”.  

Now, with an evolving mindset, it is important for financial advisors to cater to the needs of this generation. When it comes to life insurance plans, today’s generation prefers speed and convenience which allows them to make a purchase anytime and anywhere. Moreover, they are keen on looking at options that give them return on investments and lucrative bids. Hence, financial advisors need to strategize their approach to fulfil the needs of Gen Z and Y.

Along with that, one of the best ways to attract Gen Z and Y is by offering exceptional customization options that provides the necessary edge to financial advisors over their competitors. In order to get personalized products and better deals, they are willing to share personal health data. For example, the current generation agrees to share smart watch data in exchange for reduced premiums and other wellness benefits.  

Rahul Agarwal, an eight-year MDRT member from Chhattisgarh, India, says millennials are entrepreneurial in nature., “They believe in risk-taking. They are single, so they don’t give much importance to long-term insurance plans. They want to create start-ups or businesses instead of being part of companies or big corporations. This is a newfound opportunity for financial advisors. To bank on it, we must strive to study them and understand their needs from their lenses.”  

We understand that these generations prefer simpler, personalized products, but there are certain factors which are considered when purchasing a life insurance policy. Sum assured is the amount a nominee gets in the case of an unfortunate event. This amount needs to be sufficient to take care of all the financial requirements of the nominee and is a big factor when considering a purchase. Then come riders which are an add-on to the basic insurance plan. Riders such as critical illness and accidental death give additional coverage against risk. Premium affordability is an obvious factor, the lower the premium, the higher the chance of that plan getting selected. 

Most financial advisors have recognized this generation’s need for convenience and have created an online application process, an appealing website and a solid social media presence to reach their target audience. According to Insurance CuES India Report, 2022, one in two customers relied on digital sources of information before purchasing a life insurance plan. So having strong digital channels has become the key to attracting clients. 

Today’s generation is one of creators rather than followers. They are an entrepreneurial bunch that are thriving among the disruption seen in various industries. For them to achieve their dreams, financial security is a necessity that can be provided by a life insurance plan.

Contact: MDRTeditorial@teamlewis.com