8 Facts About Selling Insurance to Young People

Twenty-somethings don't care about insurance, right? Wrong! It is true, however, that selling insurance to people born during the Reagan administration (or after) calls for a different approach. But it's a challenge worth your time. If you can get them interested in buying a policy, you'll make loyal clients that could stay with you for decades. Some agents have perfected their pitch to the under-30 demographic. If you can remember these eight facts about selling insurance to young clients, you could even make this demographic a niche that you own in your market. They're online. About 35 percent of people shopping for health insurance online are between 18 and 30. This age group already does its banking online. It's only natural that they shop for insurance online. If you have a fun, engaging online presence (including social media outreach) you'll be meeting this demographic where they already are. Initiate contact online, then reach out via phone or in person when they're ready to talk specifics. They're underserved. Millennials are often uninsured because coverage isn't available through their employer and they're too old to be on their parents' plans. Sure, a lot of them don't care about insurance. But many of them do. And chances are they feel like the products available aren't suited for them. If you can change this perception, you'll find Generation Y includes a receptive pool of potential customers. Their participation helps everyone. Young, healthy people may think going without insurance is a risk worth taking. But when healthy people aren't insured, shared risk means higher premiums for everyone. High premiums drive more healthy people away, making premiums even higher. It's a vicious cycle that's terrible for the industry. They want discounts. Statistics suggest cost, not overconfidence in their good health, is the biggest barrier between young people and insurance. Cheaper premiums drive new business—it's as simple as that. If your company offers discounts, put them front-and-center in your marketing approach. They aren't dumb. This market segment may be young, but they're a tech-savvy market and have probably done some of their homework before talking to you. Find ways to be informative without being condescending. A parental or “preachy” tone is sure to drive them away. They have unique insurance needs.  Some insurance products will never do well with this age group. People in their twenties probably don't have a lot of property or possessions to insure. Renters insurance and enough auto coverage to meet their state requirements are big, but twenty-somethings also need low-cost medical coverage and protection for the families they're just starting. They want to avoid bankruptcy. Already saddled with student loans and shaky job prospects, these young men and women are serious about avoiding debt and bankruptcy. Medical bills are the single biggest cause of financial ruin in the United States. Along with having an emergency savings, health insurance is the best vaccine against insurmountable medical debt. They don't know how to get coverage. A recent study found that 10 percent of people in their 20s don't have insurance because they don’t know how to get it. No doubt the Affordable Care Act will bring stronger outreach and enrollment efforts. If you, as an insurance sales professional, can be a part of this outreach, you will establish yourself as a go-to resource for insurance expertise in your community. When young people come to you with questions, put the hard sell on hold and give them answers. Building trust now will build sales later.