Millennial Misconceptions of Insurance: Changing Your Thinking

To be honest, four years ago when I was beginning my freshman year of college the last industry I thought I was going to end up in was Insurance. While progressing through my college years, I heard of insurance internships and how my peers in those internships spent their summer calling everyone they knew to buy life insurance. Needless to say when I got offered an internship at an insurance agency I was skeptical. The last thing I wanted to do was call and ask my family and friends for favors. I had the same misconception that most millennials have and over the past year I have come to understand that insurance is so much more than life insurance, let alone a cute mascot or catchy jingle.

We, the “Millennials”, have access to more information than any generation before us. So why do we think that insurance is this commodity that can be fully grasped in fifteen minutes or less? It’s quite simple; it’s what we have been trained to think by entertaining advertisements that teach you little to nothing about what you’re buying. There is a reason that insurance has been around since King Hammurabi’s Code of ancient Babylonia, and I can assure you it isn’t to save time. Although much has changed in the past 3000 years the general concept of insurance has not. The technical definition of insurance is the transfer of the possibility of a loss (risk) to a third party, who then spreads that risk to many individuals.

So here I am, a 22 year old, in an industry dominated by employees in their mid to late fifties. My goal is simple, to educate my peers and debunk the negative stereotypes that come along with insurance. It is not something that can be overlooked and there are reasons why every aspect of life involves insurance, commercial or personal. When I explain my interest in insurance to friends, they all have the same puzzled look: Why are you so passionate about insurance? The answer is effortless and one that requires a little bit of a demonstration.

I pick up two pieces of printer paper, both costing an average of $0.00598 to produce. Because one has ink on it that happens to be an insurance policy covering a business, it’s actually worth $500,000. I go on to tell them that in the event of a loss in which you are covered that half a cent can protect not only you, but your future and those who depend on you.

Unfortunately in an industry where price is viewed as the determining factor this isn’t always the case. Those fifteen minutes I talked about earlier can leave them exposed to risks that quote machines don’t want to educate them on or give them the option to add to a policy. When they experience a loss, the lack of coverage that saved them time and money could result in that $500,000 policy being nothing more than a $0.00598 piece of plain white printer paper.

When it comes to insurance, obtaining the bare minimum just isn’t good enough. This “commodity” is growing ever more prominent in our lives with the introduction of Obamacare. Thus, education is the key to not making a mistake that could impact you financially for the rest of your life. My goal is not to lecture you or tell you what to buy, but to prepare you and change your thinking when it comes to this little thing we call insurance. Through this blog series I will examine the most common misconceptions that millennials have and hopefully teach you something that will help you in the future.

Alec Wells

Business Development Coordinator/ Resident Millennial

Rue Insurance

In business and in life, sometimes you just can't see it coming. That's why there's Rue Insurance. Not just insurance brokers: we are your insurance advisors. We've been helping our clients portect their assets and improve their bottom lines for nearly 100 years. Be Ready With Rue is our commitment to help you identify risks and customize a strategy to reduce or eliminate your potential costs. Don't let a disaster ruin you financially, Be Ready With Rue.

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