Don’t be caught uncovered. There are good reasons to get life insurance as a millennial.
Many Millennials are waiting later to enter the workforce, buy homes, and have children, so it stands to reason that many of them are also waiting longer to buy life insurance. However, even if you are a young, healthy person with no children and only a small amount of assets, there are several valid reasons why you should consider purchasing a life insurance policy.
1. People depend on you
Even if you don't have children, you probably have dependents. You might have a spouse, or a long term significant other who you share assets with. How would their lives be affected if you and your income were suddenly out of the picture? Would they be able to afford to live comfortably? Could they even afford to take the necessary time off to mourn properly, or would the threat of immediate financial duress simply add to their stress?
2. It's more affordable when you're young and healthy
Every insurance company understands risk. A healthy millennial is generally considered to be a low-risk client for a life insurance company, therefore, you are more likely to get an affordable life insurance policy. If you are a non-smoker with few or no pre-existing conditions, you might be surprised to find how inexpensive a life insurance policy can be.
3. Consider your cosigners
If you were to die unexpectedly, there are certain types of debt that are waived - such as student loans, for example. However, if your parents cosigned on a student loan, car loan, or a credit card that was also in your name, they'll still be on the hook for those debts even after you're gone. If your parents racked up a considerable amount of debt to send you to school, the thoughtful thing to do would be to name one or both of them as beneficiaries on your life insurance policy.
4. Don't leave your loved ones on the hook for funeral expenses
Even if you leave no dependents and no lingering debts, someone will have to cover the costs of providing you with a proper burial and/or funeral. Funerals can cost your loved ones anywhere from $5,000-$15,000, and the simplest of life insurance policies can prevent you from burdening your friends or family with that expense. If you have thoughts about how you'd like to be buried or commemorated, it's important to leave such instructions in a legally binding last will and testament.
5. You may need to supplement the insurance provided by your employer
If you were lucky enough to land a good job with a great benefits package, you may already have a basic employer-sponsored group life insurance benefit plan. But is it enough? A simple policy that covers end-of-life and funeral expenses may seem like enough to a single individual, but consider the aforementioned factors and decide if you and your dependents could benefit from additional coverage. Check with your human resources department to see how much life insurance (and what type of life insurance) you have as part of your benefits package.
If you need to brush up on your life insurance basics, or you feel the need to learn more about the different types of life insurance coverage such as Term Life Insurance, Whole Life Insurance, and Universal Life Insurance, the Protective Learning Center is here to help.