We know that this generation of young people are getting married later, living at home longer, and waiting to have children. We also know that many Millennials are waiting longer to buy life insurance. This is alarming because even a young, healthy person with no children and little assets can still greatly benefit from a life insurance policy.
Sixty-seven percent of Millennials said that keeping up with daily expenses such as rent and groceries far outweighed purchasing life insurance, and even twenty-six percent said they would rather save for a vacation than purchase life insurance. What Millennials are missing here is that insurance is more affordable when you are younger. In the eyes of an insurance company, a young and healthy person is a low-risk client, therefore, the policy will tend to be very inexpensive, especially for non-smokers with little to no pre-existing conditions.
Research shows that most Millennials are entering the job force with incredible student loan debt. What many of those young people do not consider is that often times those student loans are co-signed by parents. When you pass away, who is responsible for your debt? In most cases, death will waive debt, like credit cards taken in your own name. However, car loans, student loans, personal loans, and credit cards that were co-signed by a parent for you are still their responsibility. And that kind of debt can cripple a family. A life insurance policy will cover the debts of the loved ones who helped you financially if you should unexpectedly pass away.
Waiting to have children does not mean that no one is depending on you. While people in their twenties are not rushing to have children, they do often times have spouses or long term significant others who may share their assets. If suddenly you were no longer in the picture, would they be able to live comfortably? Speaking of loved ones, they are often tasked with the responsibility of handling your funeral should something happen to you. Most Millennials have no idea how much a funeral can cost, and the average $5,000-$15,000 price tag can come as a surprise. When unprepared, a funeral can actually be a huge financial burden on a family, and even the simplest of policies can prevent your friends and family from having to suffer that burden.
At Freedom Insurance Agency, we understand the needs of young people and old alike, and we have a policy catered to all ages and their needs. Contact us today for more information.