According to Canada Protection Plan, the number of life insurance policies issued to clients under the age of 30, between mid-March and June 2020, increased by almost 20%, compared to the same period l 'last year. If we compare this data with data for the period January to mid-March 2020, we see a 14% increase in life insurance policies issued to clients under 30 years of age.
The life insurance provider has also recently launched a product for “healthy people” (life insurance without medical requirements), an opportunity for young people to protect themselves at a lower cost, according to Michael Aziz, co-president of Plan protection of Canada. It has put forward a marketing strategy that targets young people on the platforms they prefer, responding to a difficulty for insurers to reach this segment of the population that does not use the same communication tools as the previous generation.
“In the old days, people under 30 needed a trigger to think about getting life insurance, whether it was marriage or buying a property. Now they realize that the need for such protection exists outside of these constraints, ”says Michael Aziz.
On the side of BMO Insurance, the need for protection is also felt. The bank has noticed a marked increase in the number of subscriptions since the start of the pandemic, but the proportion attributed to young subscribers could not be confirmed.
THE PANDEMIC AS A TRIGGER
“Rather, at the start of the pandemic, it was rather a decrease in submissions that we noticed, which resulted in the closure of economies and the obligation for customers to stay at home,” notes Steven Cooney. Then, as more tools were deployed, we noticed growth in subscriptions, which is between 10% to 15% above average levels. “
The reasons for this increase are various, but Steven Cooney acknowledges that the pandemic may have played a role in raising awareness of the protections offered among investors who, until recently, were reluctant to add insurance. to their wallet.
“With the pandemic, I believe people have realized that the unknown can happen, and as some are in the process of starting a family or buying a first home, they realized the importance of protecting the family financial security. », Explains Steven Cooney.
Life insurance has different objectives for clients under 30, explains William Bonin, financial security advisor at Desjardins. The first is to protect family and loved ones. The goal is not to leave debt to loved ones. Early in adulthood, you can take out loans to finance certain projects, so it is important to protect these debts in the event of death so that they do not become a burden on the estate.
“From what I've noticed, the pandemic has ringed a certain bell, and not just on the life insurance side, but also on the living protection side,” he says. At the start of the pandemic, several people lost their jobs. They realized that without adequate protection, their savings might not be enough to offset the loss or decline in income. “
NOT FOR EVERYBODY
Whether or not life insurance is right for a person depends on their own personal realities and circumstances, says Cooney. “There are times when it is definitely not appropriate. And even when appropriate, the advisor must ensure that the right coverage is found based on the realities and needs of the client. If your client is just graduating from school, is single and has no student debt, life insurance may not be necessary. Generally, life insurance is adequate for certain important stages in life such as marriage, the arrival of children or the purchase of a property. “
The advisor's responsibility lies in the ability to properly assess the situation of his client, in order to determine whether or not a product is suitable for his needs. Solicitation of clients for insurance cannot go beyond the recommendation stage, with the client making the final decision whether or not to enroll.
“I think our responsibility, as advisors, is to focus on the needs of the client,” Judge William Bonin. The solutions we propose must protect the financial aspect related to the need for planning. If the client values their goals, it will be up to them to decide whether the protection is sufficient. Our mission is to make adequate recommendations and demonstrate the benefits of protection. But the final decision is up to the customer. “