I good paying job, a home, and family are shared characteristics between the generations. Below are hree reasons Millennials are ideal income protection prospects.

#1: Demographic fit

The oldest of Millennials, born in 1980, turns 35 this year, the time of life when career building and income growth begins to take off. The economy in the mid-2000s contributed to a poor job market and disappointing income levels. However, today, more than 85 percent of 2008 college graduates are employed and earning an average income of more than $52,000. This demographic is an ideal disability insurance target profile – early to mid-career, with sufficient income to afford coverage.

It’s no wonder this group is committed to financial stability based on the financial difficulties many saw their parents through. More than half of Millennials save six percent of their paychecks and despite the large amount of debt they carry, primarily due to student loans, 75 percent believe financial security is a prerequisite for marriage.

#2: Marriage, children, and homeownership

In the next few years, 30+-year-olds will be heading down the aisle and visit maternity wards. Seventy-four percent of Millennials want to have children and 70 percent hope to marry. Millennial women, ages 25 to 34 account for the highest number of births.

In step with marriage and children, comes home buying. The peak home buying ages are 25 to 45. Millennials represent the largest numbers in this age group and 93 percent of them plan to own a home in the future.

These new financial commitments to a spouse, children, and home can compel this financially conservative audience to learn about ways to protect their paychecks from income-interrupting disabilities.

#3: Student loan debt

The third reason this generation should be central to your disability income practice is the large debt they carry. Regardless of their marital or home ownership status, this group carries the burden and anxiety of student loan debt – to the tune of more than $20,000 on average.

Smaller employers, most attractive to Millennials, are more likely to offer limited benefit packages, without disability insurance. Because Millennials are concerned about falling behind on student loan repayments and they recognize the uncertainty of anyone’s financial position, they are open to learning more about disability insurance.

Leave a Reply

Your email address will not be published. Required fields are marked *