When it comes to planning for life’s most important factors, the younger generation typically isn’t always in the know. In fact, according to a study from the National Endowment for Financial Education, only 24% of millennials can demonstrate even basic financial literacy.
Additionally, the millennial generation isn’t too keen on speaking with life insurance brokers, either. Partly because they feel they don’t need life insurance because they are young and healthy at the moment, and partly because they simply don’t understand the importance of these policies, young Americans just aren’t concerned with life insurance. But that needs to change.
Here are some of the most popular reasons why millennials need to start considering life insurance:
Life insurance is much cheaper when you’re young
Typical life insurance premiums are based on a multitude of factors, including both age and overall health. If a person waits until their 40s, 50s, 60s, and beyond to search for life insurance policies, that can get pretty pricey. A young and healthy individual is far less likely to pay high rates for life insurance, so it’s best to lock in a rate early.
There are built-in savings opportunities
The majority of millennials are still struggling with student debt and aren’t making all that much money. Because of this, they are typically skeptical about shelling out more money for longterm life insurance policies, but whole life insurance plans can actually grow at a tax-free rate and accumulate cash value over an extended period of time. Life insurance, therefore, can effectively be used as a low risk savings plan.
Life insurance policies are typically better than employer’s policies
Though you should speak with experienced insurance brokers prior to making any decision, make sure you take a look at your employer’s insurance policy as well. Some jobs provide high quality packages with great benefits, but workplace coverage might not be sufficient enough for some millennials — so life insurance policies could be a better option.
If you’re in need of assistance from professional insurance brokers and want to consult with trusted life insurance or disability insurance companies, contact Linda Clarkson today.