Much has been written about how Millennials today (generally defined as anyone born between 1980 and 1995) put off buying their first home, get married and start a family.
Another thing you can add to this list is to buy life insurance. The search for life insurance and the Association of Market Research (LIMRA) shows that while Millennials are concerned about their financial security, very few have enough (or any) life insurance.
Why Millennials are not fooled life insurance
Millennials cited "cost" as the main reason they do not buy life insurance. Many perceive life insurance to be more expensive than it really is. Millennials believe that life insurance policy of $ 250,000 level term for a healthy 30-year-old is $ 1,000. In reality, it is more along the lines of $ 150 almost 10 times less than what they imagine.
The effects of the Great Recession does Millennials less likely to pay for a life insurance policy. And that's unfortunate because there are many advantages to buying coverage when you're young.
6 benefits of life insurance for children of the millennium
Life happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions, has identified these advantages to taking a political as a young adult.
1. a way to provide for all dependents. Dependents include children often but not always. A dependent is someone who relies on your income to make ends meet. This could include a spouse, / live-in boyfriend girlfriend with whom you are a home owner, a parent with special needs or a loved one whose long-term care, you help (or intend to contribute at). Keep in mind that even stay at home parents often have a need for life insurance.
2. Lower costs. life insurance premiums are risk calculations based on mortality. Since the average life expectancy is around 79 years, there is less risk for a company to ensure a healthy millennium. Coverage can usually be obtained for pennies on the dollar.
3. insurability. Qualification for coverage as a healthy millennium is usually much easier and less expensive than the application after you have been diagnosed with a health problem. Do not wait :. A health problem may arise overnight and qualify for a life insurance policy can be a very different experience once you have been diagnosed
4. A vehicle to maximize your savings . If you still have a reason to dig into your savings, consider a permanent life insurance policy that has a death benefit and a savings component as well. You can borrow against it and using it in retirement, according to the policy and the company behind it.
5. A supplement to your insurance-backed company. Millennials who are lucky enough to have a good paying job with excellent benefits can benefit from life insurance through their company. While this provides some peace of mind, consider purchasing other, independent coverage. If you become ill and are no longer able to work, work your policy will not cover you. If you have been diagnosed with a terminal illness, you may not be able to get a life insurance policy at the time. Moreover, most basic coverage does not cover everything your family needs at a time when they are struggling to support themselves.
6. One way to cover funeral expenses and debt. Although nobody depends on your income, you must consider your debts and funeral expenses. The only way funeral costs between $ 10,000 and $ 15,000. Some debts would be removed while others would be collected by whatever assets you have left behind.
Also if your parents co-sign on your loan (s) student. If so, are they able to manage expenses as college loans or will it create financial difficulties for them? Millennials want to decide what amount of coverage they need to pay for funeral expenses and debts recoverable when deciding on the amount of the insurance coverage they want. Erie Insurance at affordable policies with coverage up to $ 0,000 that require no medical exam. *
If you are interested in learning more about life insurance, it is best to talk with a professional such as an Erie Insurance agent in your community. He or she can tell you affordable options that give you the right protection and peace of mind.
* The application may require answering questions on medical conditions.
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