When it comes to selling health insurance, there is a niche, often overlooked group that requires a different approach than your average 30-year-old looking to purchase a family plan – the 26 year-olds.
The reason selling insurance to this age group should be handled differently is because, similar to any specified target customer, the needs and wants someone is their mid-20s has are unique. They’re purchasing insurance for themselves for the first time, most likely because the lifespan on their parents’ plans has come to an end.
To help you take on this group, we’ve compiled three key tips to provide agents with some insight on the purchasing behaviors to keep an eye out for when encountering a young adult:
Perhaps one of the primary behaviors of a young adult is a “no-commitment” mentality. Many of these individuals, if single, are not looking to sign off on anything that is permanent. Just look at the recent stats from the U.S. Census Bureau – the average age of first marriage for women in 2017 was 27.4 years. For men, it’s slightly older at 29.5 years. At 26, it would be fair to anticipate that flexibility is appealing.
Unlike long-term plans, short term health insurance provides fast, flexible insurance with many benefits. These plans can be extended up to 3 years, and you can pick your deductible amount from many options. You are also able to drop coverage without a penalty if you want to change to a long term insurance option. Premiums are lower than ACA health insurance plans, and you get coverage as soon as a day after applying. We’d recommend, in addition to providing information on long-term plans, you emphasize flexible short-plans if a 26-year-old sounds hesitant to commit to a purchase.
Key trait of the 26 year-olds: they’re online. Shopping, of any essence, is typically done via computer, phone, table, iPod, etc. This generation is used to one-click Amazon Prime purchases. As the professional agent, it’s your job to make insurance shopping the same.
Comparison shopping, which any experienced shopper is familiar with, takes up a significant amount of valuable time. Being the insurance agent, you become the one-stop Amazon Prime Insurance stop. By offering your guidance and comparison of plans – you’re doing the difficult work for them. Prove your expertise by doing proper research to give them a well-rounded analysis of plans, prices, premiums, and more.
In this customer scenario, you are, above all, their teammate. Help them to decide on their preferences. Preferences that a first time shopper does not even know they have. If you can help the average young adult find a quality plan that checks off their boxes, you’ve done your job. Remember: you are there to inform and support them in their selection, regardless of what it may be.
The Overall Price of the Plan
If an individual is a 20-something, as mentioned, they are more likely to be single and childless – but that doesn’t mean they will stay that way. Life events are approaching. Marriage, children, mortgages, retirement plans, etc.
Short term plans are certainly cost friendly. However, the downside of waiting to buy a long-term plan is that they might face higher premiums. Emphasize this to your customer; good deals are attractive to a young professional transitioning into “adult” mode.
Keep in mind that health insurance will not be the only major purchase a 26 year-old be thinking about. These life events are cost sensitive, so for a mid-twenties individual who may be in the early stages of a career, it is not far off to assume the plan should fit a specific budget. Be prepared to provide quality plans at a low cost, especially if the customer sounds concerned about a serious purchase such as this.
You’re The Pro
When establishing rapport with a 26 year-old, you must take into consideration the amount of money they are willing to pay, the coverage they are looking for, the premiums offered, and the term length of the plan. If the individual does not have an opinion on any of these answers, be sure to guide them with explanations.
While you are doing your best to sell a plan, your primary approach should be to educate the customer. You are the professional. Create a culture of Q&A between yourself and your client. If you do this successfully, you will establish yourself as an expert in what you do. Your clients will take notice and refer you to more potential clients, and you will quickly become the go-to for guidance in your network of customers. If you put building trust within your community first – the sales will follow close behind you.