If you are a millennial, you are probably in your late twenties and early thirties. This is the time in your life when you are really starting to think about your finances, building a nest egg and how to find long-term stability. Often when this age group is planning their financial future, life insurance is put on the back burner. This is understandable since when you are young a healthy, you may think you don’t need life insurance. But that part of your financial planning should not be overlooked. The reality is, you just never know what could happen and millennials need term life insurance just as much as an older generation.
1. Offer Support to Your Parents If you provide some financial assistance to your parents or other relatives, then they are considered financially dependent on you. In the case that you were to pass, you would want them to be still taken care, whether it’s financially or a service you provided them.
2. Loans and Debt From credit cards to student loans and perhaps even a mortgage payment, you may carry a significant amount of debt as a young adult. These debts are not written off when you die. Even if your debt burden isn't high, it is nice to know that your family and loved ones will not be held responsible for outstanding financial obligations. The government does forgive federally guaranteed student loans in the event of a borrower’s debt, but if it’s a private loan or a co-signed loan you will still owe that money.
3. Cover funeral and memorial costs. According to the National Funeral Directors Association, the median cost of a funeral is $8,508. Without life insurance, your family would be responsible for those costs. A term life insurance plan could quickly reduce expenses for your family in the event of your death.
4. Your Children If you have kids, you need life insurance so your income can be replaced after your death. You also need to remember their future expenses such as college tuition.
At this age, you can buy a high-value term life insurance policy for a reasonable price. As you get older, your health risks increase and you'll have to pay more for a plan. Buying now locks in your rate for the length of your policy so you can get a good deal now and benefit in the long run.
As you shop for your first term life insurance policy, there’s much to learn about and decide. Don’t be afraid to ask questions as you look for the right plan. Fill out our online form, 24-7. We are available to help answer any questions you may have.
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Term Life Insurance products are offered through TMFS Insurance Agency LLC, a separate company, affiliated with Financial Engines Advisors, L.L.C. (FEA), in states where licensed. TMFS Insurance Agency, LLC is under common ownership with FEA. Each entity is its own separate entity that provides services for its client independent from the other.