The world is always changing, and some of those changes affect you more than others. One of those changes comes in the form of life insurance policies. If you have a life insurance policy or plan on getting one, there are a few things that you should know about the present and future.
Policies cater to millennials
Today, millennials are the market. Many products that you see are created with millennials in mind. In addition to making up a majority of the workforce, millennials make up a majority of buyers. As a result, life insurance companies changed their approach to target this demographic.
Compared to many other demographics, millennials don’t plan much for the future. They focus less on saving for retirement and tend to live more in the moment. As a result, life insurance isn’t a priority. Companies needed to change to make life insurance seem more appealing to them to do this, they work on meeting buyers on their own terms. Much like customized auto insurance policies, life insurance policies are more flexible. Buyers can have more say in the creation of their policies.
Of course, insurance companies still target baby boomers. They are living longer than ever, and that does affect insurance policies. But another issue is retirement. As baby boomers consider retirement, money is getting tighter. In many cases, children move back home and the burden goes on the shoulders of their parents- the baby boomers.
Much like millennials, baby boomers need a little more flexibility in their plans. They need to be able to adjust to new financial burdens, or to dealing with chronic illness. In baby boomers, chronic illness is a common issue. Health insurance is changing to accommodate the needs of both millennials and baby boomers.
Health exams may not be necessary
Is the end of health exams here? Currently, health exams are a necessary evil. However, most life insurance companies would be willing to change that with predictive analytics. Although the technology isn’t yet perfected, predicted analytics could be the way of the future. Insurance companies could use predictive analytics to make predictions about an individual. This means that health exams would be less important. With or without an exam, an insurance company could predict what the future holds for an individual.
Life Insurance Today
There is no way to say for sure what the future holds for life insurance. However, it is possible to see what direction things are headed. As life insurance companies try to stay appealing for millennials and baby boomers, things are changing. Policies are altering to become more appealing to a generation who has no interest in planning for the future. However, policies are also changing to accommodate a generation suffering from chronic illness and living longer.
No matter what your age may be, it’s likely that the changes in life insurance will affect you. You might be drawn to the increased flexibility of the plans. Or, you might be interested in the use of predictive analytics. In any case, life insurance is changing with the times.
