Product DEMOGRAPHICS STATISTICS. SmartMarkets FINANCIAL CONCERNS. MARKET INSIGHTS Focus

Transcription

1 Product DEMOGRAPHICS SmartMarkets MARKET INSIGHTS Focus

2 SmartMarket: Generation Z 2.3 million of US population and growing Ages 2 19 Marketers target ages Also igeneration. 55% Caucasian 24% Hispanic 14% African-American 4% Asian 18% of the world s population. 76% of Gen Z want to make their hobbies their jobs. 50% - 72% want to run their own start-up like YouTube personality Fred (Lucas Cruikshank) who made his name at age 13. Digital natives. Instant gratification, but do think about saving. Challenge traditional ideas. Want to make things their own. Respond to independence and entrepreneurialism. Children of Gen Xers. Thrive on small bits of information, i.e. Twitter. (Older Generation Z cohort) Educational loan debt Job market Financial stability important Reality versus perfect world ; simplicity; streamlined process. Provider WL: Simplified underwriting whole life that parents can purchase on Generation Z children; built-in no-cost guaranteed insurability rider that allows for additional coverage down the road with no evidence of insurability. Child Rider also available on parent s policy for ages 30 days 18 years old; convertible without evidence of insurability. Protector AD: For 18 and 19 year-old drivers. No medical questions; inexpensive; accidental death coverage doubles over 20 years; return-ofpremium feature. Sources: US Census Bureau; cnbc.com; investmentnews.com; businessinsider.com; rocketswag.com; advertisingage.com; huffi ngtonpost.com; yahoonews.com, wikipedia.com; marstoncomm.com

3 SmartMarket: Millennials 24% of US population Ages Also called Generation Y or Echo Boomers. 19% Hispanic 14% African-American 5% Asian 21% are married. Median Income: Ages 18-27: $25,000 Ages 28-36: $48,000 23% have a Bachelor s degree or higher. 76% own a smart phone. Millennials shop/compare online. Tend to be renters rather than homeowners; many live with parents to save on expenses. Snapchat, Instagram, Facebook and Twitter users brevity of message is important. Simplifying how things get done resonates with Millennials. Millennials overestimate the cost of insurance by 213%! Student loans Wedding debt Getting out of debt Planning for retirement Affordability; simplicity. Provider WL: Least expensive permanent plan; simplified underwriting; guaranteed cash value. Term: Coverage for specific period such as student loan debt; if ROP, annual premiums returned or use surrender value to purchase reduced paid-up coverage with no more premiums. Protector AD: Does client commute to work? No medical questions; inexpensive; refund-of-premium feature; simplest plan of all. Sources: US Census Bureau; wikipedia.com; statisticbrain.com; Pew Research; Business2Community.com; lifehealthpro.com; huffi ngtonpost.com; whitehouse.gov A 2-16

4 SmartMarket: Generation X 16% of US population Ages Generation born after Boomers, also called MTV Generation. 18% Hispanic 12% African-American 6% Asian 63% are married. Median Income: Ages 35-44: $64,973 Ages 45-54: $67,141 43% have a Bachelor s degree or higher. Gen Xers want access to information about life insurance; online chat to confirm information or ask questions. Remind Gen Xers that premiums are less expensive at younger ages; healthy lifestyles can lower them even more. Rate 75% of the mail they receive as valuable. Position insurance as longterm benefit, not short-term expense. Gen Xers overestimate the cost of insurance by 119%! Outstanding loans Child care Unpaid medical bills Mortgages & other debt Planning for retirement Affordability; debt relief. Provider WL: Least expensive permanent plan; coverage to age 121; preferred rates available for those who qualify; guaranteed cash value. Term: affordable coverage for a specific need such as an outstanding mortgage; if ROP, annual premiums returned or use surrender value to purchase reduced paid-up coverage to 95 with no more premiums due. Protector AD: Does client commute to work? No medical questions; inexpensive; cash value equals annual premiums paid at end of 20 years; simplest plan of all. Sources: data.un.org; US Census Bureau; statisticbrain.com; wikipedia.com; powerhomebiz.com; americanexpress.com; marketwatch.com; usatoday.com B 2-16

5 SmartMarket: Baby Boomers 76 million Americans Ages Sometimes referred to today as Empty Nesters. More than 10,000 Boomers a day have been turning 65 since This will continue for 19 years. 57% say household finances have worsened. Control over 50% of all consumer spending. Nearly 1/3 of Boomers would rather pass inheritance to charities rather than to their children. 40% anticipate adult children will move back in with them. Memorable events: Cold War; Viet Nam War; Woodstock, assassinations of JFK, RFK, & MLK, Jr.; Watergate; Civil Rights. Raised in anti-authoritarian times avoid experts agree ; use role models. Authentic life situations rather than a step-by-step presentation work better; seminars & interactive educational groups also effective. Concerned with handling end-of-life issues. Having to postpone retirement to keep working Having enough saved to enjoy a comfortable retirement Financial responsibilities that affect adult children and parents. Express Issue Premier/Deluxe/Express Issue WL: Final expense coverage for a variety of health classes. Premier is least expensive; Deluxe is suitable for insulin-dependent diabetics if they otherwise qualify. EIWL is a 2-year graded death benefit plan for more serious health issues. Covers final expenses without using other less liquid assets. Term Insurance: Express Issue Term 20 or 30, or Premier 20 with return-of-premium available up to $150,000 in coverage. ROP features allows for purchase of reduced paid-up plan at end of level term period. Protector AD: Does client commute to work? No medical questions; inexpensive; accidental death coverage doubles over 20 years; return-of-premium feature. Sources: US Census Bureau; Pew Research; wikipedia.com; stageofl ife.com; insureme.com; dallasnews.com; marstoncomm.com C 2-16

6 SmartMarket: Silent Generation 20 million Americans Ages Also called Traditional Generation or Greatest Generation. The last of the Silent Generation reached age 65 in 2007; retired, and sold out before the 2008 crash. Median net worth age 75+: $228,400 Healthiest, wealthiest, and most educated generation of elders. Median age for this generation at marriage: 21 years old Economic anchors for families, subsidizing Boomer or Xer kids; setting up college trust funds for grandkids and/or assuming formal custody of them. Influenced by the Great Depression, the Dust Bowl years, World War II, and the Korean War. Believe you earn your own way through hard work. Strive for financial security. Maintaining financial security Financial issues facing children and grandchildren Added financial security; coverage for final expenses without using assets. Express Issue Premier/Deluxe WL: Final expense coverage for better health classes. Premier is least expensive; Deluxe is suitable for insulin-dependent diabetics if they qualify otherwise. Covers final expenses without using other less liquid assets. Full death benefit from day 1. Built-in no-cost terminal illness benefit. Express Issue WL: 2-year graded death benefit final expense plan for more serious health issues. Can cover final expenses without using other less liquid assets. Full death benefit beginning policy year 3. Several built-in no-cost riders available. Guaranteed Issue Whole Life: For those with very serious health issues or uninsurable all together. Issue age max is 75 (ALB). 3-year graded death benefit. Sources: US Census Bureau; wikipedia.com; study.com; forbes.com; legalcareers.com; rocketswag.com; wisegeek.org; marstoncomm.com; valueoptions.com D 2-16

7 SmartMarket: Newlyweds More than 2 million weddings take place every year Median Newlywed Age: Men: 28.7 Women: % of new marriages are interracial. Not all newlyweds are young couples; many are marrying for the second time. Average wedding cost: $27,500 (without the honeymoon) Median Combined Income: $60,000 22% of wives earn more than husbands. Planning is key; current and future protection for family and for financial responsibilities. Evaluate current coverages to see if combining makes sense. Wedding debt Financial resources Purchasing a home Car loans and other debt Team with wedding planners to provide financial reviews for engaged couples. Financial issues are 2nd biggest problem for newlyweds. Cash value for emergencies; term to perm with ROP. Provider WL: Least expensive permanent plan; coverage to age 121; preferred rates available for those who qualify; guaranteed cash value. Term: Affordable coverage for specific period such as an outstanding mortgage; if ROP, annual premiums returned or use surrender value to purchase reduced paid-up coverage to 95 with no more premiums. Protector AD: Does client commute to work? No medical questions; inexpensive; return-of-premium feature; simplest plan of all. Sources: US Census Bureau; statisticbrain.com; wikipedia.com; costofwedding.com; weddingstats.org E 2-16

8 SmartMarket: Families Average age 1st-time home buyer: 30 years old Mean Child-Bearing Age: 28 years old 24 million households are married with children under % of married couples have at least one child from a previous relationship. Average outstanding mortgage: $95,000 Median Income Families with children under 18: $62,100 College Education: $23,872/yr for a 4-year degree Cost of raising a child to adulthood: $245,340 Families with kids are typically in the accumulation phase of life. Position life insurance as protection against income loss and financial vulnerability. Want confirmation insurance can help make ends meet when debts are at a peak. Protecting children s future is a high priority. Mothers control 80% of household spending. Lost income Mortgage and other debt Child care expenses Education/college funding Coverage for financial responsibilities; protect kids. Provider WL: Least expensive permanent plan; coverage to age 121; preferred rates available for those who qualify; guaranteed cash value; juvenile coverage with built-in guaranteed insurability rider. Term: Affordable coverage for specific period such as an outstanding mortgage; if ROP, annual premiums returned or use surrender value to purchase reduced paid-up coverage to 95 with no more premiums; Child Rider for added protection. Protector AD: Does client commute to work? Does client carpool? No medical questions; inexpensive; return-of-premium feature; simplest plan of all. Sources: US Census Bureau; statisticbrain.com; wikipedia.com, thecollegeinvestor.com; Nat l Center For Health Statistics; twentysomethingmarriage.org; lifehealthpro.com, kidscount.org, nces.ed.gov F 2-16

9 SmartMarket: Empty Nesters Age 50+ represents 45% of US population 68 million people are age 55 or older. 44% of users over age 50 daily use a mobile device to access the Internet and check . Women aged 50 and older control a net worth of $19 trillion. Median Income: Ages 55-64: $60,580 68% aged 50+ support adult kids over 21 and/or elderly parents. Housing /Utilities /Food/ Auto/Health Expenses Average: $34,289/year About 30% of empty nesters anticipate simplifying and/or downsizing their lifestyle once the kids leave. Many stay in work-force longer to pay down debt, add to retirement savings. Divorce rates tend to increase once kids are gone. 58% say they are or were emotionally ready to get the kids out of the house. Life style shifts from achievement to quality. Lost income Existing debt Medical bills Final expenses How products/services meet needs. Express Issue Premier/Deluxe/Express Issue WL: Permanent coverage for a variety of health classes. Premier is least expensive; Deluxe is suitable for insulin-dependent diabetics if they can otherwise qualify. EIWL is a 2-year graded death benefit plan for more serious health issues. Covers final and other expenses without using less liquid assets. Protector AD: For clients who commute, or travel for work or pleasure. No medical questions; inexpensive; accidental death coverage doubles over 20 years; return-of-premium feature. Sources: data.un.org; US Census Bureau; statisticbrain.com; wikipedia.com; she-conomy.com; usnews.com; stageofl ife.com G 2-16

10 SmartMarket: Retirees 10,000 people turn 65 every day 38% of Americans save $0 toward retirement. 36% of Americans over age 65 rely completely on Social Security. Social Security pays just $255 as a death benefit. Average retirement age: 63 Average length of retirement: 18 years Total cost for a couple over 65 for medical treatment over a 20-year span: $218,000 Many retirees live on a fixed income; position products/services as budgetfriendly. Retirees tend to rely, in part, on adult children in the decision-making process. More concerned than average consumer about security, independence, lifestyle, and family relationships. Want to know needs are being considered on an individual basis not one size fits all. Lost income Medical bills Final expenses Affordability; client s individual needs. Express Issue Premier/Deluxe/Express Issue WL: Permanent coverage for a variety of health classes on a simplified basis. Premier is least expensive; Deluxe is suitable for insulin-dependent diabetics if they can otherwise qualify. EIWL is a 2-year graded death benefit plan for more serious health issues. Covers final and other expenses without using less liquid assets. Guaranteed Issue WL: Permanent coverage up to $10,000 for clients; no health questions; 3-year graded benefit; for applicants who ve had trouble getting insurance in the past or who don t want the hassles of medical exams and fluids testing. Sources: data.un.org; US Census Bureau; statisticbrain.com; wikipedia.com; benefi ts.gov; seniorlivingmag.com; H 2-16

11 SmartMarket: Single Seniors 13.1% of the US population is over age 65 Age 65+ population is expected to be 55 million by million people over 65 live alone. 45% of women age 65+ are widows. 6.7 million people over age 65 are in the labor force. Median Income: Males: $25,704 Females: $15, % of older Americans are below the poverty level mainly due to medical expenses million have a grandchild living with them. 7 out of 10 Boomer wives will outlive their husbands. Loneliness has an impact on premature death - a sense of community is important. For those who have lost a spouse, it s the #1 stressor. Many 65+ who are widowed remain independent less than 15% remarry. Avoid old age references such as elderly. Medical bills Final expenses Providing for grandchildren Relieving burdens; establish relationship; build trust. Express Issue Premier/Deluxe/Express Issue WL: Permanent coverage for a variety of health classes. Premier is least expensive; Deluxe is suitable for insulin-dependent diabetics if they can otherwise qualify. EIWL is a 2-year graded death benefit plan for more serious health issues. Covers final and other expenses without using less liquid assets. Guaranteed Issue WL: Permanent coverage up to $10,000 for clients; no health questions; 3-year graded benefit; for applicants who ve had trouble getting insurance in the past or who don t want the hassles of medical exams and fluids testing. Sources: Department of Health & Human Services; US Census Bureau; wikipedia.com; carepoint.com; leadingage.org; widowshope.org; lifehealthpro.com I 2-16