If you’re a Millennial, chances are you’re not keen on buying life insurance through the traditional channels. But that doesn’t mean you don’t need coverage, particularly when you experience major life events like marriage and children.
USA TODAY reports that the insurance industry is facing a crisis when it comes to attracting new, younger customers. Fortunately, the Internet is going to offer you more options for buying coverage than ever before!
Back in 2010, the percentage of households with life insurance fell to a 50-year low. We were in the midst of the Great Recession and people were skeptical of financial services professionals like insurance salespeople. Let’s face it: The tried-and-true methods of agents visiting people in their homes to sell life insurance just didn’t fit with Gen Y.
So shopping for insurance has been seen as a complete pain by younger people. But that pain is about to go away…
Websites that make shopping for insurance easy
Now coming into the mix is the idea of buying through a website as an electronic agent. For people who are younger and never experienced a relationship with a real live agent, this is particularly appealing.
That’s where a website like PolicyGenius.com comes in. You do a brief registration and then you answer a questionnaire that takes about 3 or 4 minutes. Some of the questions can be pretty intrusive, but you want to answer honestly so you can get the right quotes.
What kind of insurance can you get quotes for? Level term life insurance, disability insurance, renter’s insurance, and even pet insurance! You can have quotes emailed to you and nobody will ever call you, unless you want them to.
Another similar site that won’t hound you with calls from agents is Quotacy.com. Now it’s even rumored that Google will get into price comparison on various insurance products.
When you do get quotes, be sure you get quotes for level term life insurance. That’s where you pay a set premium for a specified number of years (to replace your income in the event of your death) and then the policy and the premiums stop after that period. More info here.
The power of direct writers
The truth is buying insurance is dull. Most insurance is still bought from an agent because it’s based on that traditional relationship. But direct writers are growing. Geico and Progressive are 2 examples of marketing powerhouses in selling direct. USAA is another, but their insurance services are exclusively for military.
If you have an agent you’ve relied on for their advice in the past when the chips were down, then that agent is worth it. But if you never had that relationship and you are used to buying things electronically, I say try a direct writer, particularly the ones online.
Be aware that some comparison sites are actually captives, not true comparison sites. If you get quotes and they’re all from one company, you’ll know you’re in that situation.
Why you need disability insurance, renter’s insurance
A quick word about some of the lesser known insurances I mentioned above. With disability insurance, did you know you’re 3 times more likely to become disabled than die during your working lifetime?
And on the subject of renter’s insurance, it’s among the most under-purchased products there is. Every winter, there will be these apartment fires because of space heaters and then the word comes—no one had renter’s insurance. So the Red Cross has to find a place for people to live temporarily. That scenario could avoided with renter’s insurance.
Some landlords will require you to have renter’s insurance, though that’s very rare. The policy you get must have replacement value coverage for your belongings and relocation assistance should your place become uninhabitable. Don’t leave yourself unprotected!