When consumers use a financial plan to generate wealth creation, it tends to lead to an increased interest in securing financial products, a newly released study has discovered.
The analysis, spearheaded by worldwide research and development organization LIMRA, examined a pool of millennials' money management habits, the variable being whether they had put together a financial plan or were going about estate planning solo. Among respondents who had one, nearly 40 percent were more likely to purchase life insurance, versus less than 1 in 5 who were willing to buy but did not have a financial plan. Meanwhile, among money-earning ventures, financial planners were 44 percent more inclined to buy shares in this kind of money-making mechanism, versus 18 percent of non-planners.
Patrick Leary, corporate vice president of distribution research at LIMRA, pointed out that this may serve as an opportunity for insurance agents, especially among potential clients who are millennials.
"Older millennials are now in their 30s and starting to build wealth, buy homes and start families," Leary explained. "They are also less likely to have a relationship with a financial advisor or insurance agent."
"60 percent of millennials find it very important to have their financial needs taken care of all at once."
If insurance agents are able to satisfy millennials' financial planning essentials, the more likely they are to become potential clients. Approximately 6 in 10 respondents said that having all their financial needs taken care of in a "one-stop shopping" manner was very important to them, LIMRA reported from its polling data.
Though you're never too old to start saving for retirement, those who successfully contribute to their post-career years typically do so in early adulthood. According to a recent poll conducted by Gallup, over 1 in 4 – 26 percent – began saving their earnings before their 25th birthday. Additionally nearly 1 in 10 – 7 percent – started in their teenage years.