Americans born between 1982 and 2000 number 83.1 million and represent more than a quarter of the country’s population. It’s a segment so formidable that it exceeds even the 75.4 million baby boomers (United States Census Bureau) living in America. Did you know that millennials also represent one of Nashville’s fastest-growing demographics? But get this: many don’t have life insurance. Do you?
Money recently reported that 29% of millennials admitted that saving for vacation was more important than life insurance and that 60% said it was more important to pay for internet, cable, and cell phones than life insurance. We get it, life insurance is probably the last thing you want to think about.
While it’s hard to argue for life insurance over wifi, we’re going to do just that.
Putting Life Insurance into Perspective
Life Happens found that many “Americans pay $120 annually on cell phone insurance to protect an item that costs around $570 dollars at retail value. Yet, 64% of Americans are unwilling to spend just a bit more — $156 annually — on level term life insurance policy to protect something priceless: loved ones.”
Life insurance, especially for healthy, young millennials is more affordable (and easier) than you think.
Workplace Life Insurance is Probably Insufficient
If your workplace offers life insurance as a benefit, consider yourself lucky while considering the coverage. If your coverage is often capped at your salary or $50,000. Which may not be enough to cover your existing debt, potential lawsuits, or final expenses. In fact, it’s advisable to purchase a policy that would cover your salary for 5-10 years, should the unthinkable happen. If, like many young professionals, you hop from job to job every year or two, it’s worth noting that your life insurance probably won’t follow you.
I’m Single, I Don’t Need Life Insurance
Think again. If you’re working to pay off your student loan, like 63% of your peers, then your college debts can come back to haunt your loved one. Keep in mind that bank loans co-signed by your parents (or a loved one) won’t be discharged upon your death in the same way that the federal government would do with federal student loans. Keep in mind, too, that if you have a joint credit card, your co-creditors will be held responsible for your credit card debt.
Life insurance can also help pay off other outstanding debts, legal fees, and final expenses — which, on average, range from $6-10,000.
Finally, if you’re thinking that should something go terribly awry, your friends and family would fill the coffers of a gofundme account, you may be right. But would you really want grieving friends and loved ones to be responsible for running and maintaining the site in the event of your death?
If You Have Kids, You Need Life Insurance
Although most millennials are waiting longer to get married and have kids than the generations preceding them, more and more are getting hitched and starting families. Life insurance is especially important if your partner is a stay-at-home parent!
Don’t Get Overwhelmed, It’s Going To Be Okay
If you’re tired of the endless stream of direct mail advertising “life insurance for pennies per day” or the overwhelming (and confusing) onslaught of online ads, schedule an appointment to meet with an insurance professional. He or she will help you determine the level of coverage that’s right for you and your family. Often, medical histories can be quickly submitted online and if an examination is required by the insurance company, they’ll send a medical professional to your home or place of employment.
If You Aren’t Confident, Don’t Trust the Internet
As tempting (and gratifying) as it is to click a button and fill out an online questionnaire, you may be better served to work directly with a licensed agent. Reputable insurance agents will discuss your options (for free) and help you acquire the policy that fits your lifestyle.
The Younger You Are, The Better Off You Are
The younger (and healthier) you are, the cheaper your life insurance. Take it from us, the years fly by! Why spend dollars per day on life insurance when you could be spending pennies?
To learn more about life insurance and to find out what kind of questions you need to ask your insurance agent, check out our Fundamentals of Life Insurance article.
For a free, no-obligation life insurance quote, please contact Royce Williams Insurance.