72.1 million Millennials and GenerationX poised to fuel surge in critical illness insurance sales.
“The market for critical illness insurance is poised to easily double in the next few years as awareness grows, more insurers enter the market and the economy renews”Jesse Slome, director of the American Association of Critical Illness Insurance
Millennials need critical illness insurance information
For the first time millennials have surpassed Baby Boomers as the nation’s largest living adult generation. There are now 72.1 million millennials according to the latest U.S. Census Bureau estimates.
“The Millennial generation continues to grow and will dominate trends for the next three decades,” states Jesse Slome, director of the American Association for Critical Illness Insurance. “Their insurance needs will be very different than those of Baby Boomers.”
Millennials were born between 1981 and 1996. In addition to those born in the U.S., immigration has expanded their numbers in recent years. There were 71.6 million baby Boomers at the end of 2019 and 65.2 million Generation X Americans. Generation Xers were born between 1965 and 1980.
“Baby Boomers are aging and their numbers are declining,” Slome adds. “Their numbers peaked at 78.8 million in 1999. But they are no longer the largest generation and by 2050 there will be around 16 million Boomers still alive.”
“Demographics drive the future and that is why we are especially optimistic about the market for critical illness insurance in the U.S.,” Slome says. There are currently about five million policies in force according to the Association. “The market for critical illness insurance is poised to easily double in the next few years as awareness grows, more insurers enter the market and the economy renews,” Slome predicts
Why Millennials will buy critical illness insurance in record numbers
Millennials are currently between ages 24 and 39. “Millions will be getting married and moving forward with a solid career,” Slome explains. “Millions more will be buying their first residence. They won’t want to lose everything which can happen when a critical illness such as cancer occurs. Prior generations were urged to buy life insurance but that’s not the most suitable option for Millennials. Critical illness insurance protects against the far greater risk this generation faces.”
The critical illness insurance advocate anticipates significant market development. “When we re-emerge as an economy you can expect far more companies to offer critical illness insurance options,” Slome adds. “Likewise I foresee growth of individual critical illness products sold by traditional life and health insurance agents.”
Millennials tips for critical illness insurance planning
Firstly cancer is the greater risk you likely face. Heart attacks and strokes tend to occur at older ages. Seek an insurance plan that offers both cancer insurance as well as comprehensive critical illness options.
Secondly, use the Association’s instant critical illness insurance cost calculator. It provides an instant estimate of costs for $10,000 of cancer insurance coverage..
Thirdly, consider coverage that will cover your rent or mortgage payment for a time period of between 6 and 18 months. That generally will be suitable coverage. It will also be less costly than larger policies. Some critical illness insurance coverage is always better than having none.