Life insurance companies missing opportunity to bring in younger customers

Oct 06, 2011

Young people are not as insured as they could be, reports say.

A new report from Mintel Comperemedia suggests that Americans under the age of 45 may not have enough life insurance and companies should be selling more to them.

While the 46 years and older bracket saw 85 percent of the direct mail life insurance volume for the first six months of 2011, ages 18 through 45 saw only 15 percent of direct mail marketing, down from 19 percent from the same period in 2010. Individuals 65 and older had a 28 percent share of life insurance marketing in their mailbox for the first six months of 2011, unchanged from the previous year.

"Perhaps this is partially a function of marketing activities," says Gary Wooley, director, Insurance Consulting at Mintel Comperemedia. "When carriers market life insurance directly to consumers, they overwhelmingly continue to target those over the age of 45 - effectively alienating other potentially lucrative demographics."

According to a Genworth Financial LifeJacket study released earlier this year, young people who need life insurance often don't have any even though it is very affordable. Another 69 percent of single parents, who are most in need, constitute the highest percentage of uninsured Americans, the report said.

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