Why millennials aren't thinking about life insurance
According to the 2017 Insurance Barometer Study by Life Happens and LIMRA, only 52 percent of young adults have a life insurance policy. The study found that there are many reasons you and other millennials aren't thinking about life insurance right now, including:
- You think it's too expensive, however eight out of 10 millennials overestimate the cost.
- You don't think it's as important as day-to-day expenses like a mortgage, utilities and groceries.
- In the hustle and bustle of working, growing a family and buying a house, you may fail to think about the future.
- You assume you don't need life insurance because you're healthy. Studies also show that millennials tend to prioritize vacations and going out to eat over financial planning.
5 reasons millennials should consider life insurance
If you are a millennial reluctant to get life insurance, there are many reasons you should make it a priority sooner rather than later.1. Millennials are more likely to get an inexpensive policy now.
In general, life insurance premiums tend to be lower if you're young and healthy. A nonsmoker under the age of 30 with no pre-existing health conditions may be able to get life insurance coverage for a small amount each month and at a different rate than someone who is older, who smokes or has chronic health conditions. Bottom line: Buying life insurance now could save you money over the long term.2. You are at highest risk for sudden death.
You may feel young and invincible, but accidents happen. Data from the Centers for Disease Control and Prevention (CDC) shows that unintentional injury is the leading cause of death for young adults in the United States. Life insurance can help cover funeral costs, which can run upwards of $7,360, in the event of your passing.3. You have a family or aging parents.
Getting life insurance is a wise decision if you have dependents who would be in a financial lurch without you. For the 37 percent of families who rely on a single income, life insurance can help replace or offset lost income. Even if both you and your spouse work, life insurance could help pay for home expenses or your children's education costs should the worst happen.4. You can protect co-signers of your student loans.
Three out of four millennials have student loan debt, according to an NBC News survey. While federal student loans are discharged upon death, private loans are a different story. Your untimely passing could throw your private loans into default and put your cosigners in bankruptcy. The death benefit provided by a life insurance policy can protect parents and relatives who served as co-signers from financial hardship.5. Your employer insurance isn't enough or you own a business.
Your employer's life insurance plan may not offer a comprehensive safety net. Should you stop working for the company, you most likely wouldn't have that coverage anymore. It's worth doing research to see if you can get more coverage independent of your employer. Running your own company? A life insurance policy can provide funds to recover from the loss of an owner.
What to do next
Now that you know why it's important to get life insurance, it's time to find a policy that may work for you. First, consider how much coverage you need and what you can afford. You'll also want to decide what types of features you need in a policy. Term life insurance and permanent* life insurance are two of the most common options, but they offer different benefits. No matter what type of life insurance policy you pursue, you can rest easy knowing that you have taken an important step toward protecting your family or business.
*As long as required premium payments are timely made.