A recent national survey revealed some troubling information. While we tell our customers that life insurance can provide needed financial security for loved ones, we’re not reaching the people who may need it most: millennials.
Misconceptions about Life Insurance Policies
You may not believe it, but millennials – the “younger” generation – are approaching 40!
It’s true. Unfortunately, too many of these young-ish people may not have all the facts when it comes to life insurance planning.
A new survey by the National Association of Insurance Commissioners (NAIC) revealed that there is a need for better communication about life insurance across generations. It also revealed that large percentages of respondents had misconceptions about cost and coverage. In short, many people out there are still confused about why they need life insurance and how much it costs. Some responders:
- Did not realize that certain occupations might affect a life insurance policy.
- Did not know that some health conditions might impact a life insurance policy.
- Simply overestimated how much life insurance costs per month.
Even millennials who are beneficiaries on an older family member’s plan don’t know everything they need to. While over half of millennials surveyed said they were listed as a beneficiary, only around 30% knew what that role entailed!
Understanding Life Insurance Policies is Step One
Understanding key information about life insurance policies can help ensure that families are fully covered and benefits are paid out successfully when needed. Beneficiaries should know the answers to these questions, at the least:
- Who is the carrier?
- What is the benefit amount?
- Where is the policy stored?
For young families, life insurance doesn’t have to cost an arm and a leg! In fact, the sooner families sign up for a policy, the better.
Have you talked to your family members about a plan for your future?
For Young People, the Best Time to Purchase Life Insurance is Right Now
Sometimes it takes a big life event to force young people to think about their mortality: getting married or having a child, for example. But it doesn’t have to be that way!
At Low Cost Life Insurance, we help individuals calculate the amount of life insurance coverage they need and the length of time they need life insurance protection. A general guideline for the amount of life insurance needed is 10x your annual income. Most people maintain their life insurance policy until age 70. We also help our customers choose the absolute best policy for their families.
Are you ready to start talking? Give us a call to learn how you can protect yourself and your loved ones.
