When it comes to millennials and life insurance, fewer than 20 percent say they’re likely to buy a policy. Why, you might ask? According to a survey conducted by LIMRA, cell phones, cable, internet, and saving for vacation ranked higher on their priority list than investing in a life insurance policy. Many young adults who are single and currently childless may be under the impression that life insurance is meant for people who are established and married with a family, but investing in a policy now can often be extremely beneficial to young adults looking to find security in their future.
Lower premiums: The last thing any young adult wants to think about is adding another monthly expense to their already lengthy list of monthly bills and obligations. However, at some point, life insurance is something in which everyone needs to invest, and the smartest thing to do is to buy in while premiums are low. Age and health affect premium rates, so the younger and healthier you are, the less expensive your life insurance will be.
Outstanding loans: In this day and age, it is rare to find anyone, much less a young adult, who is completely debt free. Whether it’s student loans or a home mortgage, your spouse or family members could be left to pay off a hefty amount of your debt, should something happen to you. However, investing in a level premium term life insurance policy that covers the exact time frame of your mortgage or student loans could help protect your loved ones from carrying unwanted financial burdens.
The bottom line: When it comes down to it, not all young singles need life insurance. If you are unmarried, don’t have children, and you are the sole holder of your debt or are debt-free, a life insurance policy is more of an option than an essential. However, if you’re like most people, life insurance will eventually become a necessity.
If you have questions about life insurance, disability insurance or any other type of financial services, contact a consultant from Starke’s Life Agency, or complete one of our free, no obligation quote forms to get more information.
*If you’re newly married and wondering about insurance and merging finances with your new spouse, click here for tips!