Starting in 2030, the last group of Baby Boomers will turn 65. This means that one-fifth of Americans will be older adults — that is 72 million people, according to the 2013 State of Aging and Health in America report. While the Boomers were overwhelmingly the largest living generation, they are now rivaled by a younger group: The Millennials, also known as Generation Y.
This large, diverse, digital-savvy generation has certainly been a hot topic of discussion. Taking the interpretation of Millennials a step further, a recent survey by Benenson Strategy Group dove into their take on health insurance. The researchers found that a vast majority of Millennials are not only insured but also take insurance seriously.
According to the survey results, which reported the answers of more than 1,000 Millennials around the United States, 86% of respondents are insured. Furthermore, 85% said it is either “absolutely essential” or “very important” to be covered by a health insurance plan. Of those who have coverage, 39% are receiving it through their employer and 20% are receiving assistance from Medicaid.
Are Millennials Buying Life Insurance?
The short answer: no. While Millennials are purchasing health insurance, they don’t seem to be thinking that far in advance. In a 2015 study, LIMRA Research Institute looked at how many members of Generation X and Y were purchasing life insurance. The results showed that while the majority of members of these generations believe that they need more coverage, less than 20% reported being “very likely” to buy it.
“The study clearly shows that people recognize the value of life insurance and the risks they face being underinsured,” Todd A. Silverhart, Ph.D., corporate vice president of LIMRA said in a press release. “Yet other financial priorities and confusion on what they need lead many consumers to postpone buying life insurance.”
For Millennials specifically, interest was especially low in purchasing this type of insurance. Only 11% of respondents between the ages of 18 and 34 said that they were very likely to buy it. As insurance companies continue to grapple with the issue of attracting this generation to their policies, they should remember to be inclusive in their marketing and be transparent in the benefits of choosing a health plan.
