Hey Millennials, lean in real quick! Whoever told you that life insurance was strictly for the older generation was way wrong! True, this topic is not the most exciting. There are probably many other things you would rather be doing like binge watching a new Hulu series or planning a trip to Cabo, but this is definitely something you should be thinking about as well.
What if you got into an unfortunate accident tomorrow, would anyone be affected by the loss of your income? I’d venture to guess “yes.” That’s a big reason you should be thinking about life insurance. Here are a few others:
- It’s Cheaper Now!
Young and healthy applicants are considered low-risk clients. The younger you are the less you pay for coverage. The longer you wait, the more prone you will be to serious medical conditions such as heart disease or diabetes, which drives premiums up.
- Employer’s Insurance May Not Be Enough!
If you’re lucky enough to be offered life insurance through your employer you may think this will be enough, but that’s not always the case. If you develop an illness and can’t physically work this policy would cover you in case your employer’s lapses. Also, it’s good to keep in mind that your employer may go out of business or you could be laid off. Better safe than sorry!
- We Love Our Families!
We don’t want to stick them with our debt. As we all know, many of us have a boat load of student loan debt. Imagine forcing your parents to not only deal with losing you but also be crippled with that massive debt as well. Will your family be able to pay the mortgage, medical bills, car insurance, etc? Life insurance can offer the peace of mind that your loved ones won’t be dealing with more stress and will be taken care of.
- Some Policies Accrue Savings!
Whole Life Insurance is worth taking a look at even in your 20’s. This is a permanent insurance that covers you until death. The premiums are pricier but the policy accumulates cash over time and is tax-free. This means you can borrow against it down the road and use it as a low-risk savings tool. You should already be adding to your “nest egg” savings but this can supplement it as well! Mo Money, Less Problems!
In your 20’s managing money involves a lot of trial and error. The key is to understand the basics. This will give you a financial advantage. The basic take home point here is that though life insurance may be the last thing on your mind now, don’t leave it on the back burner! All millennials should consider a term or whole life insurance policy as part of their larger financial plan.