5 Reasons Millennials Need Life Insurance
September is National Life Insurance Awareness Month, and the time to start contributing to your personal life insurance is right now.
When most young adults think about life insurance, they think from the perspective of a beneficiary – such as funds or assets received once a loved one has passed who held a life insurance policy, or they probably don’t think about it at all. According to a report mentioned in Forbes, 82 percent of millenials don’t even know what life insurance is for. As you enter into new life stages and assume new responsibilities, life insurance needs to be a topic you at least begin to understand.
Don’t let the topic of life insurance intimidate you. It is an important and responsible decision that every young adult needs to consider. The reasons for taking out a life insurance plan will vary depending on your life stage. Ultimately, life insurance gives you peace of mind in knowing that your loved ones will be financially covered should you meet an untimely death, but it has some personal benefits as well.
Five Reasons Millennials Need Life Insurance
Millennials can secure cheaper premiums.
As a young and relatively healthy person, you can qualify for much lower premiums. Unless you are a smoker or have a preexisting condition, a life insurance plan will be much cheaper now as opposed to when you are nearing retirement. Your life insurance company will review your medical history and assess your health by having a medical professional administer a medical exam.
Insurance agencies use results from a life insurance medical exam to determine if you are insurable and set the premium for your plan. As you get older and new medical conditions affect your quality of life and expected longevity, life insurance premiums will be higher. Choosing to invest in a plan today, can have great dividends for your loved ones in the future.
It can help cover your funeral expenses.
The cost range for a funeral in North America is $7,000- $10,000. A single, young adult with no dependents should consider contributing to a life insurance policy so that the burden of their funeral expenses does not fall on their living family members.
It ensures your family’s financial security.
Life insurance is extremely important if you have a family or are starting a family. Life insurance can be used to compensate for the loss of income your spouse will experience. The grieving process is different for everyone and can prove debilitating for your surviving family members. The money from a life insurance policy can help support your loved ones as they work through the grieving process by compensating for any setbacks that may come from the trauma of your passing.
If you have children, you might want a policy that leaves them an inheritance or provides them the opportunity to fully benefit from your personal assets. Survivorship insurance or second-to-die insurance covers the lives of two people and can help make sure that your beneficiaries are able to pay your estate taxes without having to liquidate your personal assets.
It can help pay off debt.
Upon your passing, if you share in any debts such as co-signing on a house or car the responsibility could fall to your co-signer. Any assets you pass down to a beneficiary that have outstanding balances will be transferred over as outstanding debt in the beneficiary’s name. Your life insurance policy will be able to help pay off your debts so that your beneficiary’s inheritances come without any strings attached.
Venturing into new business opportunities is common for many millennials. You should consider life insurance if you start a business and especially if you have business partners. A life insurance policy will allow you to ensure your legacy and settle the finances of your business responsibilities. Taking out a policy will also prevent your partner from having to bear the full weight of financial responsibility alone.
The Bottom Line
We get it. Managing money as a young adult involves quite a bit of trial and error, but frontloading yourself with the basics puts you a step ahead of the rest. Millennials make plenty of excuses to avoid life insurance, and it’s probably the last thing on their mind; yet it’s essential to consider it as part of the larger financial plan.
The investment in your life insurance is the most important investment you can make. Medlin & Associates is an insurance provider that wants to help secure your life and give you confidence that the people who mean the most are taken care of no matter what happens.
You may not know what tomorrow brings, but you can rest better knowing that those who are left behind will be covered. Visit our website to view our different policies, and let us find the best life insurance for you today.
Medlin & Associates is an exclusive insurance agency serving the Dallas, Denton and all of our Texas family. We offer customized insurance options for personal, life or commercial insurance.