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Life insurance isn’t something only your parents and grandparents have to worry about. Unfortunately, death has no age limit, so it’s never too early to start planning ahead to create stability for your loved ones in your absence.
Now more millennials are getting serious about their financial future, and you should be too. Below are a few reasons why more millennials are buying life insurance.
To financially protect their loved ones
In addition to being more risk-averse and having more responsibility, millennials also want to protect their families in the event of their death. Having life insurance coverage ensures that your children have money for college expenses and your family can financially manage household bills like the mortgage, utilities, and everything in between.
There isn’t enough coverage through the employer’s life insurance
If you have a full-time job, your employer most likely offers some form of group life insurance at no cost to you, but it may not be enough to cover your end-of-life expenses. Millennials are getting their own life insurance policy in addition to or in place of their employer’s life insurance to ensure their loved ones are covered for the unexpected.
Millennials are eligible for lower premiums
Most Millennials have an advantage when it comes to life insurance rates. The majority live active lifestyles, eat healthier, and have fewer health issues compared to older adults in their 40s and 50s. Life insurance companies measure the risk of death when analyzing their customers, so someone with a low health-related risk would receive greater discounts.
Some policies offer investment opportunities
Some forms of cash value life insurance, like universal or whole life insurance, offer an investment opportunity that can be incredibly beneficial. Cash value policies build up a designated amount of money over time that you can use during or after your lifetime. When you make payments into a whole life policy, part of the money goes towards the death benefit while another part accumulates as liquidity within the policy.
The Bottom Line
There are so many great reasons more Millennials are purchasing life insurance policies. Having life insurance gives them a better handle on their finances now and will provide them with the financial security they need in the long run. Plus, when purchased young and before any major health issues arise, it’s usually much more affordable than when purchased later in life.