A survey by Life Ant, a company that specializes in providing insurance quotes, found that nearly 70% of respondents between 18 and 39 said they would shop for life insurance online before consulting a financial advisor. Meanwhile, 60% of those 40 and older said they were more likely to consult a financial advisor to purchase life insurance than to use an online source.
According to Life Ant, while the millennial generation is making more money and becoming more established, millennials retain their desire to be more efficient by using online sources where possible.
“As this happens, the supply of clients for life insurance agents will dwindle, and the supply of clients looking to buy life insurance online will increase significantly,” Life Ant stated. “This could mean that the future life of insurance agents is not bright unless they adapt. The younger millennial generation has much more trust in current online resources.”
The survey results led Life Ant to conclude that the life insurance industry is in for “some drastic changes, including steep declines in business.”
“Life insurance agents may need to change the way they operate, especially because the old models will not last as technology advances,” Life Ant stated. “To provide better online life insurance services, Life Ant recommends that companies offer extensive educational material, high quality needs calculators, and other informative resources.”
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Millennials will likely push a sea change in the life insurance industry by buying their insurance almost exclusively online, according to a new study.