Life insurance is a valuable protective service. Even though the benefits that this type of policy brings makes it a priority for many people, one specific age group isn’t taking advantage of this insurance option. The Millennial generation isn’t buying life insurance at the same rates as the generations before them.
Whether you’re a millennial yourself or a parent or family member of a millennial who doesn’t have life insurance, understanding the importance of purchasing a policy is absolutely essential. If you think that life insurance is only for retired or the elderly, then take a look at what young adults need to know about this type of coverage.
Simply put, many millennials don’t see the financial value in paying for this type of policy. They have a lot of bills and other costs to pay for, which is why many millennials are strict about what they spend their money on.
Unlike their parents, or more likely — grandparents, millennials are graduating from college and graduate school buried under a mountain of student loan debt. With the rising cost of college, the total amount of student loan debt in the U.S. is valued to be near $1.3 trillion. In the class of 2016, an average student has an around $37,172 in debt.
Starting adult life with a significant amount of debt may make millennials less likely to spend on things that aren’t in their foreseeable future. When surveyed on expenditures, 54 percent of millennials place a greater importance on paying for tech-related expenses such as the Internet, cell phones, and cable over life insurance, according to a study from LIMRA.
Along with Internet and cell phones, millennials also believe that other expenses, such as eating out, shopping, buying a new car, boat, house, or going on vacation, are priorities over paying for life insurance.
Gone are the days when 60 plus was considered old. American men and women who are currently 65 can expect to live well into their eighties, according to the U.S. Social Security Administration. A longer life expectancy coupled with the idea that old age is off in the distant future may be making millennials deprioritize life insurance.
Millennials are just starting their adult lives, and don’t want to (or simply don’t) think about death. Even though no one wants to come face to face with their own mortality, it seems that millennials are less likely to think about the what if’s than older age groups.
So why should young adults choose to purchase life insurance? Even though they may have decades or more than half a century until they reach old age, millennials need to start thinking about the future — especially if they are married or having children.
Buying life insurance now doesn’t mean that a policy-holder is getting old or that may need to use the benefits anytime soon. Life insurance is a way to cover a spouse or children in the event of the unthinkable. This is even more important if you have more than your fair share of debt. Millennials need to ask themselves if they’re okay with leaving their student loan or credit-card debt to a spouse.
Having a life insurance policy may alleviate some of the debt and cost of living burden to the family that the policyholder leaves behind. When it comes to spending what seems like extra money that they don’t have, millennials may find that they are able to get an insurance policy for less money now than they’ll be able to down the road. This can save them money in the long run.
Do you need a life insurance policy? Our team at Callis Insurance can help you to find the policy that meets your needs.