Life Insurance Without a Medical Exam
Below is our psychographic profile for a persona we will call Chris. Per feedback, we will build our persona as a person below the age of forty (i.e., a Millennial, as Gen Zers are just now graduating from college) who makes under $75,000 per year. Using MetLife's customer segmentation, we will categorize this person as a young achiever and, therefore, likely male. He has been married for several years to a wife who also works and has at least one child, and with a salary of $49,400 (with yearly expenditures of $47,112, leaving him less disposable income than he'd like). He may be a recent homeowner, though he may still feel priced out of the market. These life changes likely drive his decision to protect his family with a life insurance policy.
- Chris is a driven risk-taker, impatient for the next promotion pushing his career forward as quickly as he can.
- While expecting a certain amount of work-life balance, such as the ability to take a few hours off in the afternoon to handle his personal affairs, Chris still has a good work ethic and is willing to work into the evening to complete his work when necessary.
- Chris feels that he is falling behind financially compared to his parents; many of his friends have delayed marriage and homeownership due to living from paycheck-to-paycheck and only half have a retirement account.
- He believes in open communication and collaboration on the job, wanting regular feedback from his superiors (instead of the traditional annual review); he is also more likely to share salary information with coworkers.
- For that matter, Chris likely talks about his personal finances with his parents and even friends rather than seeing the subject as verboten as Boomers tend to.
- He is almost as likely to describe himself as a religious "none" as a Christian (40% to 49%), but even if a Christian or member of another faith, does not attend religious services regularly.
- Regardless of political affiliation, he is more likely to be pro-LGBT, indifferent to cohabitation but more negative about single motherhood, favor more government intervention to solve problems, and be sensitive to racial discrimination against non-whites.
- While a "digital native," spending more time on the internet and in apps than watching television, Chris most likely has at least one offline hobby, such as music, playing an instrument, sports, reading, non-computer gaming, cooking, fitness, etc. Chris believes that attending a live event has more of an impact than taking action online.
- Depending on his situation, Chris may attempt to turn one or more hobbies into a side-hustle; e.g., uploading videos of himself playing an instrument to YouTube.
- When he does watch television, he prefers to binge-watch a series on Netflix and enjoys Netflix's original shows.
- Chris is an early adopter of new technologies and frequently uses the internet, especially social media, to scope out products and services before buying in; that includes his financial adviser if he has one.
- He will most likely look for life insurance information on company websites and insurance aggregators and is very likely to seek to purchase insurance online unless given a good reason not to.
- This tendency to do as much online as possible carries over into other purchases as well; Chris orders takeout more often than his parents did, for example.
- However, having come through the 2009 recession and the stagnation that followed and likely still carrying heavy college debt (likely over $13,000 of the $30,000 in loans that he originally took out), he remains price-sensitive, though he is unlikely to let his life insurance policy lapse.
- Chris is also likely (81%) to expect that the companies and brands he supports to demonstrate social responsibility via charitable causes and sustainable development.
- In turn, he is more likely to remain loyal to a brand that has earned it.
- Like many Millennials, Chris prefers to spend his free money on experiences rather than things.
Drivers For Buying Insurance
- Chris likely has had limited awareness of life insurance until recent life changes (such as marriage and a child) triggered him to action.
- The main concerns that drive Chris to invest in life insurance are most likely:
- Replacing his income to take care of his family (37%).
- Taking care of his funeral arrangements (30%).
- Protecting the nest egg he wants to pass to his children (28%).
- Making sure the mortgage is paid off so his family will have a home (27%).
- Moreover, he is aware that his health and age will impact his premiums and this may drive him to purchase insurance sooner rather than later.
- If Chris holds back from buying insurance, the most likely reasons are:
- He has never been approached about buying insurance (43%).
- Fears that he won't qualify for it (38%). (While we have not found a source expressing this, we hypothesize that this is also the greatest driver for getting a no-exam policy.)
- He thinks he has enough (e.g., through work) (32%).
- Has other financial priorities (22%).
- He believes he can't afford insurance right now because he overestimates the cost (15%).
- When Chris is ready to purchase life insurance, he will speak to an agent only after educating himself (i.e., late in his customer journey) and give the agent a relatively short time period in which to provide "high-quality, timely, and comprehensive advice."