The underlying survey was conducted in July this year, gathering responses from 815 individuals aged 25 to 40. The study aimed to shed light on millennials' financial commitments and considerations when purchasing life insurance. This resulting report coincides with the first launches of protection products, to be progressively rolled out over the next 6 months.
With the youngest millennials now members of the workforce, the need for protection is more pressing than ever. Mounting commitments in domestic and professional spheres place millennials under growing financial and emotional pressure to fulfil their duties to family and work. The pandemic has made it even more difficult to plan for the future – a position that older generations may not understand.
Among the foremost sources of financial concern listed by respondents were providing for their ageing parents financially (48%) and funding their own retirement (60%). Both worries could be linked to the rising costs of living and life expectancy here.
In just a decade from 2010 to 2020, local life expectancy increased from 81.54 to 83.90 years. As this figure rises, so lengthens the time millennials need to support their parents and eventually themselves in old age.
As is symptomatic of hectic modern life, national statistics demonstrate that millennials are putting off getting married and having children to a later age than their predecessors. As millennials juggle responsibilities to younger children and ageing parents, the insurer's challenge lies in providing competitive life insurance and critical illness coverage tailored to millennials' emergent needs.
With regard to caring for ageing parents, 4 in 5 worried about affording their healthcare expenses (82%), and 3 in 5 worried about caregiving costs (60%). Few older parents may recognise the risk of outliving their savings, or be willing to augment protection in old age due to high cost. Millennials can nonetheless ensure that their parents will have the funds they need, mishap or otherwise, by purchasing sufficient life insurance coverage for themselves.
Meanwhile, the annual medical inflation rate of 10% provides little comfort to those already struggling to manage their finances. Accordingly, 1 in 2 millennials consider their own healthcare expenses (54%) a major source of financial worry, with almost as many concerned about losing their ability to work due to critical illness (45%) and subsequently losing their income.
The Protection Survey results reveal a picture of millennials at odds with their reputation, perceived by their older counterparts as ill-disciplined, entitled and overly materialistic. Instead, millennials personify a generation under increasing pressure in all aspects of life.
Shirley Tan, Etiqa's Chief Marketing Officer, shares, "Our findings show that millennials are unfortunately still misunderstood in Singapore, and their financial needs still under-documented. In order to move with the times, financial institutions must begin by recognising each generation's unique and diverse needs and structure financial planning solutions to meet them. We believe that the results of our Protection Survey better position us to provide such solutions for our millennial customers, such as through our recent and upcoming protection launches. We look forward to introducing more innovative plans in the near future to cater to millennial lifestyles."
To read the full Protection Survey Report, click here .
Information is accurate as at 24 November 2021.
About Etiqa Insurance Pte. Ltd. (Etiqa Singapore)
Protecting customers since 1961, Etiqa Singapore is a licensed life and general insurance company regulated by the Monetary Authority of Singapore (MAS) and governed by the Insurance Act.
The local insurer is the Singapore operating entity of Etiqa Insurance Group – a leading insurance and takaful business in ASEAN offering life and general insurance as well as family and general takaful products through its agents, branches, offices and bancassurance network in the region. Etiqa is rated 'A' by credit ratings agency Fitch for the group's 'Favorable' business profile and 'Very Strong' capitalisation.
Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank, the fourth largest banking group in Southeast Asia, and 31% by Ageas, an international insurance group with footprints across 16 countries and a heritage that spans over 190 years.