5 Reasons Millennials Need Life Insurance
You're young, wild and free, healthy, and building your dream life. Life insurance probably isn't on the top of your to-do list, but it is absolutely something to have on your radar.
If you were to pass away tomorrow, would anyone be affected by the loss of your income?
More than likely, the answer is “yes”. That’s one key reason to consider purchasing a life insurance policy.
Here are a few more reasons:
1. Life insurance is more affordable at your age.
Because you have the advantage of being young and healthy, you may be considered a low-risk client for a life insurance carrier. Being low-risk brings better rates. The longer you wait, the more prone you are to serious medical conditions like heart disease and diabetes, which can drive insurance premiums up. Rates are less expensive the younger you are.
2. Others depend on you.
Whether you have children or not, you likely still have people that depend on you. A spouse or significant other is considered a dependent. If you were to die, not only would they be dealing with grief, but also navigating financial stress. Will they be able to pay the bills, mortgage, car payment, medical bills without the help of your income? Life insurance can offer you peace of mind knowing that your family and loved ones are taken care of.
3. You have debt and/or cosigners.
A big reason why millennials need life insurance is student loan debt. If you have co-signers on your loans, they would still be expected to pay the loans back. If you have a mortgage, your loved ones will be left with paying the bills. Maybe you helped a family member by cosigning a car loan, they may be financially unable to continue paying due to your loss of income which can create further hardships. You want to protect your loved ones from the burden of your debt whether it’s loans, mortgage or credit card bills.
4. Funeral expenses are increasing.
Unfortunately, we've seen one too many GoFundMe's for funeral expenses. As your loved ones are dealing with your loss, the last thing they should be concerned with is raising money to honor your life. Funerals can cost between $5,000 and $15,000. In 2019, the average funeral expense in NY was over $7,000. Life insurance can cover these costs and take this additional stress off your loved ones shoulders.
5. Your employer's insurance may not be enough.
If your job has offered a life insurance benefit and you've taken it, that's great. This policy does provide some peace of mind. But, what happens if you were to become sick and unable to work? What if life changes and you need to leave that job? Your policy through your employer is generally only effective if you are actively working at that company. Protect yourself and your loved ones with securing a separate life insurance policy.