Life Insurance and the things that come with it (i.e. thinking about your eventual death) are things that a lot of us like to push to the side to wait for the “right time.” This is becoming increasingly true, and concerning, for Millennials. Millennials that are waiting until they’re older, not as healthy, and feel like they need life insurance are now in their 40s. As you get older your personal life—purchasing a home, having children, etc.—changes along with your overall, general health: all things that affect your life insurance policy rates. When you purchase life insurance at a younger age, you can typically pay a lower initial premium. When you’re younger you are usually in better health than you will be later on as you age, which means you can skip a health exam. Having no dependents and fewer assets also helps your rates.
For Millennials, as well as the rest of the general population, the earlier you purchase insurance, the better off you are. Common deterrents include perceived cost, not understanding the necessity and not having any legal dependents.
Understanding the basics of life insurance is important to know what exactly you need. Below are a few answers to common questions and concerns Millennials have toward life insurance.
Do I need life insurance if I don’t have children or other dependents?
The short answer is yes. Even if you don’t have children, you have a partner, spouse, family members—someone who will have to cover your funeral costs and outstanding debts when you are gone. The average funeral can cost around $8,000, and someone has to cover those costs.
When you’re gone, other debts like credit cards and mortgages also have to be paid off. It is important to look into a life insurance policy, especially if you have a cosigner on any of these loans, to make sure they aren’t left with any debt you leave behind.
So, even if you do not have children or other individuals who depend on you, it is important to think about what you are leaving behind and to whom.
Is purchasing a life insurance policy expensive?
A large deterrent to purchasing life insurance is the perceived cost. Purchasing a life insurance policy can actually be affordable and fit into any budget. Benefits of purchasing your policy in your 20s or 30s, as opposed to your 40s or 50s include:
Your overall general health as you are typically in better shape and have healthier habits in your younger years, which can contribute to a lower insurance premium.
Insurers allowing you to bypass a medical exam, and reviewing your recent doctor visits and prescriptions to determine your potential rates instead.
When you purchase life insurance, you are not purchasing it for your current day-to-day–you are purchasing it for your future. Locking in lower rates when you’re young helps you save money in the long run.
How do I find the right policy if I don’t understand the terminology?
An issue for individuals of all ages when it comes to insurance is the jargon. All of the new terms can be overwhelming, especially for a first-time buyer. It is easy to be wary of something when you don’t understand it. That’s where we come in. The team at Low Cost Life Insurance is here to serve you and your needs. Our team breaks down your quote and policy information into terms that are easy to understand so you know exactly what you’re getting. We will help you find the right policy now to fit your specific needs and also continue to grow with you in the future. Reach out to our team to receive a free, personalized quote. We look forward to hearing from you!