Azim Nakhooda, Cleveland financial advisor and student of the millennial generation, identifies the generation's take on risk management.
CLEVELAND - Oct. 25, 2016 - PRLog -- – Azim Nakhooda, a founding partner and principal of Cedar Brook Group, one of the region's largest independent wealth management firms, learned that despite perception of this group as lacking seriousness and focus, statistics show that millennials are considering the future more than we think. 70% of millennials are concerned about supporting themselves if disabled and unable to work1 yet, only 25% of workers own insurance to protect this risk. Compounding the problem, the definition of the risk is changing rapidly because 90% of disabilities are not work-related. Rather, they are chronic conditions such as degenerative orthopedic problems, dementia, etc.
"Millennials will enjoy the longest life expectancy of any generation, due to advances in medicine, lower smoking rates, and general improvements in healthcare. As a result, they will greatly increase the current 8.35 million people who receive support from long-term care services such as home health agencies, nursing homes, hospices, residential care, and adult day care. The lifetime probabilities of a millennial needing at least one of those services is over 70%2.," said Mr. Nakhooda.
One silver lining identified by Mr. Nakhooda is that the insurance arena continues to innovate and adapt to the changing needs of a consumer like the millennial. A new concept is underwriting for behaviors instead of just actuarial tables. Millennials are connected and monitored like never before through social media, apps, and their ubiquitous phones. So, insurers are issuing new coverages that allow younger policy owners to pay lower premiums based on checking in at the gym, Fitbit data, scanning healthy food receipts through an app, etc.
Mr. Nakhooda went on to explain that, "Risk management for millennials is not an obvious intersection of age, interest, and means, but the data confirms that they are compelled to learn and act."
About Cedar Brook Group
Headquartered in Cleveland, OH, with offices in West Bloomfield, MI, and Palm Beach Gardens, FL, Cedar Brook is one of the largest independent wealth management firms in the region. Cedar Brook's seventy-plus professionals deliver customized, personal services including comprehensive wealth strategies, investment and insurance advice, retirement plan consulting, and group benefit programs to physicians, corporate executives, privately held business owners, and families. Cedar Brook has been recognized again as a Top Workplace in Northeast Ohio by Workplace Dynamics according to the Plain Dealer's study. The firm offers securities through Securities America Inc., member FINRA/SIPC. Advisory services are offered through Securities America Advisors Inc., an SEC Registered Investment Advisor. Cedar Brook Financial Partners LLC dba Cedar Brook Group and the Securities America companies are not affiliated.
1Source: 2016 Insurance Barometer Study, LIMRA
2Source: 2016 CDC Study – American Association for Long-Term Care Insurance
Securities offered through Securities America, Inc., Member FINRA/SIPC. Azim Nakhooda, Registered Representative. Advisory services offered through Securities America Advisors, Inc. An SEC Registered Investment Advisor. Azim Nakhooda, Investment Advisor Representative. Cedar Brook Financial Partners, LLC and Securities America are unaffiliated.
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Millennials & Risk Management, A Timely Analysis by Azim Nakhooda, Principal and Partner at Cedar Brook Group
October 25, 2016 at 14:46 PM EDT