Millennials can be a hard sell when it comes to life insurance, and when they do buy, they're usually drawn to the less expensive rates that can come with a simple term life insurance policy. But most millennials probably aren't fully aware of all the perks that come with paying more for whole life insurance rates.
Permanent life insurance vs. Term life insurance
While term life insurance can be extremely affordable, the policy usually expires within a set term such as 10, 20 or 30 years. Generally, your policy will end when the term expires, and if you choose to renew your term life insurance policy, your premiums will not be quite as affordable as they were during your first term.
Permanent life insurance on the other hand, never expires (as long as you pay your required premiums on time). It's essentially a life insurance policy that is designed to last a lifetime. Permanent policies such as whole life insurance or universal life insurance also have the potential to build cash-value that you may be able to borrow against or allow to grow.*
Locking into whole life insurance rates
Millennials currently have the advantage when it comes to locking in more affordable whole life insurance rates. While whole life insurance rates are generally higher than term, they'll be more affordable if you establish a policy while you're young and healthy, rather than waiting until you are older. By doing so, you'll have a permanent life insurance policy with premiums that will never increase as long as you continue to pay your premiums.
If you have more questions about the differences between whole life insurance rates, universal life insurance rates, and term life insurance rates, you may want to consult a financial professional.
*Loans against the policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.
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