Why Older Millennials Need to Consider Insurance Now
Millennials sit in a unique position, more so than any other generation before them. Not only do they face crushing student loan debt at higher rates than previous generations, but they also need to start thinking earlier to find ways to survive the costly retirement years. Let’s take a closer look at why thirty-somethings need to act now to have peace of mind later.
As Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” While most millennials may not want to ponder their mortality, they do need to start planning now so that their family can survive in the case of an early demise that could leave their loved ones unprotected.
The Purpose of Life Insurance
A recent study by Budget Insurance found that 82% of millennials don’t know what life insurance is for – even as they are aging, starting families, and dealing with more complex financial situations.
Life insurance policies can help you protect your family’s dreams for the future, pay off debt, and create funds for college or other important investments. It can take care of housing costs, student loan expenses, and more. It’s all about obtaining the right type of policy to meet your individual needs.
According to Pew Research, 60% of families rely on dual incomes, while 31% of families rely on a single income. Combined, that means 91% of families in the United States need one or both spouses income to survive. And what happens if one (or both) die? That’s where life insurance comes into play.
End of life expenses are costly. The average funeral costs between $6,000 and $10,000. Even if you plan for a more non-traditional funeral like a celebration of life party, someone will have to foot the bill. A relatively small life insurance policy can help do that.
Premiums are Lower When Younger
The way that life insurance works is based on several factors including overall health and age. The younger you are when you apply, the lower you will pay. This is especially true if you do not smoke or have any pre-existing conditions. As a young and healthy person you pose less of a liability to the insurance company. The older you are, the higher your premiums will jump.
Depending on whether you choose term or whole life insurance, you may be able to use your policy to borrow off of in order to pay for college, invest, or build a home. The life insurance policy can act as a savings vehicle with relatively low risk .
If you are a millennial and need to start thinking about life insurance, talk to one of our agents who can tell you how to get started and what type of policy would best fit your needs.