Millennials May Be Losing Life Insurance Knowledge

The slump in traditional media and skepticism about social media may be hurting life insurers’ ability to reach millennials.

Managers of the latest LIMRA-Life Happens insurance market barometer survey found that, even though the oldest millennials are turning 44 and the youngest are already 28, millennials’ knowledge about life insurance is getting worse.

The survey team asked participants to estimate the annual cost of term life for a healthy 30-year-old. They also included a similar question in a survey conducted in 2019. The actual average cost increased to $200 this year, from $160 five years ago.

The percentage of millennials who gave an estimate in the correct category — $100 to $299 — held steady at 23%, according to detailed survey results shared with ThinkAdvisor.

The percentage who suggested that the term life coverage would cost $1,000 or more climbed to 46%, from 42%.

What it means: Millennials now dominate the market for life insurance, and they think life insurance is much more expensive than it is.

The survey: LIMRA organized the survey for Life Happens, a National Association of Insurance and Financial Advisors affiliate that runs insurance consumer education and awareness campaigns.

The survey team polled 4,934 U.S. adults through an online system in January.

The participants were ages 18 to 75 when they answered the questions, and all said they made or helped to make financial decisions for their households.