Life insurance is not just something your grandparents purchased and kept locked in the study.
Today, life insurance plays an integral part in estate planning and financial planning for everyone, including young professionals. Indeed, financial advisers should not refrain from targeting the generation "Y" professionals who are aged between 25 and 35 just because this generation exhibits a carefree attitude about life.
In fact, many of these individuals make excellent clients. Further, they understand the importance of things like life insurance as they have lived through one of the biggest economic recessions in the last 50 years.
These young professionals intimately remember 2008 as the year that some of the world biggest economies collapsed, which has made them not only risk adverse to major investments, but more contemplative about their financial responsibilities.
Financial planners should use the motivating concerns of this generation as they market financial planning options to all generations - do they desire more coverage for their assets, such as personal property, investments or business assets; or is their focus more designed towards people and loved ones?
Indeed, when dealing with Generation Y professionals, financial advisers should first determine how their client currently envisions their estate, including all of their tangible and intangible assets.
Following that, they should ask their client to envision their estate after their passing and how they expect their estate and business to be managed once they are gone.
While this may be a difficult question for many Generation Y clients to comprehend (especially given that they are so young), it is an essential question to ask.
If an adviser can understand their client’s present and future needs, then they will be better positioned to create a ‘custom-fit’ life insurance policy for their client.
By taking the time to create a ‘custom-fit’ life insurance policy for their client, the adviser won’t just ensure their client’s needs are satisfied, but they may also be able to secure themselves a ‘client for life’.
This article was submitted by Jessica Darnbrough
, Head of Corporate Affairs at Mortgage Choice.