By Patrick Miazga
There are only two guarantees in life: death and taxes. Every year you prepare for taxes, but what about the former? The older half of millennials (24yo-39yo) should be considering more than most how to care for their loved ones should something happen, especially if a homeowner or married. Millennials, being on the younger side of adulthood, have expenses from student loans, housing costs, car payments, and more – if not properly planned for, these debts could fall onto your family and loved ones. Of further concern, your passing would likely cause lifestyle changes on your family and significant other. In a Pew Research poll it was found that 60% of families rely on dual incomes and 31% of families rely on a single income. That means that 91% of families in the U.S need one or both spouses’ income to survive. Having a monetary cushion is important. So why have many Millennials avoided this important protection?
Reason 1: “I Can’t Afford It”
Sure, you can! Being a millennial means you are still young and can get inexpensive life insurance. Many factors go into pricing a life insurance policy, but with good health and at a fairly young age it’s possible to get a $250,000 term life insurance policy for about $20-30 a month. Premiums, however, are not the only thing to consider when purchasing life insurance. The length of the term is also a key variable. It’s important to get a term that is long enough to meet your needs – for example, providing coverage until your children graduate from college. A simple term policy can provide enough financial relief should your family face your loss.
Reason 2: “Purchasing Life Insurance is Hard” – Millennials
If you think opening an app on your phone is hard you may not be a millennial, but nowadays, one can purchase a term life insurance policy directly from their smartphone. Companies such as Haven Life, Policy Genius, Ethos, and Ladder rely on technology to increase speed, reduce approval time, and keep human interaction to a minimal level, perfect for societies current situation. More companies are emerging with these offerings as the demand for these types of products and experiences increases during this unusual time. With more options to choose from and all information being available to you from the comfort of your home, there has never been a more ideal time to purchase life insurance.
Even if you are at the low end of the millennial age range, it is not a bad idea to start shopping around. You may feel as though your life has only just begun, but nothing is guaranteed. With the rise of InsurTechs such as PolicyGenius, Haven Life, Ethos, Breathe, which enables Digital offerings for insurers, and others, protecting yourself and your loved ones is easier and more affordable than ever. Most of these policies also have options to add death benefit riders for things like terminal illness. In addition, life insurance does not only kick once you kick. Many of these companies have additional benefits such as discounts at certain health service providers. These companies will continue to redefine the life insurance landscape, making it easier for those of us beginning our lives and families to plan for the future.