4 reasons why millennials need life insurance
If you’re a millennial, the chances you’ve already invested in a private life insurance policy are probably pretty low. The share of Americans covered by life insurance slid from 63% in 2011 to 52% in 2021 — and the most pronounced decrease has come from younger generations.
It makes sense — you’re young and healthy, and extra money goes towards the latest iPhone, smart home device or international travel. With the last 18 months forcing even younger generations to confront their own mortality, 48% of millennials are reportedly planning to buy within the next 12 months.
Here’s why now is the time for millennials to prioritize life insurance:
1. Save money over time.
For all the stereotypes about millennials, it’s a generation of good planners who are responsible and strong forward-thinkers. The cost of a life insurance policy is largely dependent upon risk (healthy millennials are generally considered a lower risk), so buying a life insurance policy when you are young can help lock in lower rates with term or permanent insurance.
2. Buying life insurance is easier.
One of the main reasons millennials have avoided life insurance is because it has traditionally been a pain to buy. Fortunately, advances in technology have made it easier to purchase almost anything. Millennials use virtual assistants or e-commerce sites to shop for groceries and order takeout. Same-day delivery is no longer a perk, but an industry standard that even the life insurance industry is beginning to embrace.
Signing up for life insurance isn’t difficult now that there are streamlined processes and direct-to-consumer platforms that allows applicants to receive a personalized policy up to $1 million approved and delivered on average in ten minutes or less — no doctor’s visits or in-person meetings necessary.
3. Protect your family from financial burden.
Millennials have long prioritized their careers and financial security but, as even the youngest millennials enter their mid-20s, more and more are starting families.
It has become commonplace for people to believe they don’t need life insurance because they don’t have any children yet. But just because you don’t have dependents doesn’t mean there aren’t people who depend on you. Life insurance will help protect your spouse or long-term significant other with whom you own or rent a home, and allows your parents or siblings to cover unanticipated costs as they grieve.
Half of millennials acknowledge their families would face financial hardship should a wage-earner die unexpectedly — and 43% expressed concern about leaving their dependents in a difficult financial bind. That’s especially important for millennials who have long prioritized their careers and financial security, but are now looking to start families as even the youngest of the generation enter their mid-20s.
4. Consider your cosigners.
Today’s graduates are strapped with record-breaking student loan debt, so it’s important for millennials to consider their cosigners when shopping for life insurance.
Certain types of debt are waived in the event of an unexpected death — and that includes student loans. However, many millennials have their parents or loved ones cosign on loans, credit cards or mortgages. If that’s the case, your student loan debt would transfer to your cosigner in the event of an unexpected death. A life insurance policy would help ease that financial burden in a time of grieving.
Millennials are among the most educated and knowledgeable generations in history. They’re health conscious, financially conscious and socially conscious. Yet, life insurance has been overlooked because the industry has made things too complex, too confusing and too inconvenient.
COVID has raised awareness about the important role life insurance plays in families’ financial security, so it’s time for millennials to consider getting life insurance sooner rather than later.