Do Millennials Need Life Insurance?
According to a 2017 LIMRA study, only 52 percent of millennials - young adults born between the early 1980s and the early 2000s - have purchased life insurance coverage, although many have bought homes, gotten married, and had children. This means there is a significant segment of the population without the financial safety net life insurance protection can provide. What's more, failing to purchase life insurance now, while they are young and healthy, may mean coverage is unattainable or unaffordable later in life. In most cases, Millennials could benefit from having life insurance coverage.
Millennials get married and have or adopt children every day. If you died prematurely and didn't have any life insurance in place, what would that do to your spouse or partner and/or minor children? Would they have the financial wherewithal to continue with their current standard of living, or would they be forced to make lifestyle changes as a result?
Life insurance is one way to provide financial security for loved ones, allowing them to remain in the family home and carry on with their lives, even if your income was no longer there because of your premature death.
Life insurance can do more than just provide for the people you care about; it can also help ensure your financial responsibilities are met if you die while the policy is in force.
Every day, Millennials purchase homes, start businesses, take out education loans, and make other major financial decisions. Life insurance coverage can include protection to pay off outstanding debt, to pay for children's college education, to help fund retirement, and more.
It's an unpleasant fact: Dying is expensive. According to the National Funeral Directors Association (NFDA), the median cost of an adult funeral with a viewing, burial, and vault in the U.S. was $8,755 in 2017.
Life insurance can provide the necessary funds to pay for your final expenses so that your loved ones don't need to worry about how to pay for them.
The LIMRA survey revealed that many Millennials have not purchased life insurance because they believe they won't be able to afford it. In reality, buying life insurance while you are young and relatively healthy is the best time to do so.
Life insurance premiums are based in large part on your attained age and your health. You will never be any younger than you are today, so chances are good that your life insurance premiums will never be any cheaper either. Your insurance agent can help you determine whether permanent insurance, term coverage, or a combination of both will best meet your budget and insurance needs.
Many Millennials are lucky to have employers who offer life insurance as an employee benefit, often paid for entirely by the employer. These businesses understand the importance of having that financial safety net. However, most employer-sponsored coverage is not "portable," meaning if you change employers, you won't be able to take your coverage with you. Relying on a work life insurance policy may also mean you don't have as much coverage as you actually need to protect your loved ones. Millennials should work with experienced, knowledgeable insurance agents who can help them meet their insurance needs.
No matter what your age or stage of life, buying life insurance protection is a smart move that can give you peace of mind, knowing you have financial protection in place so your loved ones won't be burdened with expenses or forced to change their standard of living when you die.
Symmetry Financial Group's independent insurance agents work with Millennials every day, helping them identify their insurance needs, explaining how various types of life insurance policies work, and showing them how affordable it can actually be. While some insurance agencies may push their own insurance products, Symmetry Financial Group is an independent agency. That means our agents have access to insurance products from more than 30 well-known and trusted insurance companies. We'll help you determine your needs; then we'll help you find solutions to meet them.