5 Reasons Millennials Should Buy Life Insurance Now: Expert
A growing number of people in the United States, especially young Americans, have become more interested in life insurance over the past year. About 31% of consumers say the coronavirus pandemic has made them more likely to purchase life insurance within the next year, according to the Insurance barometer 2021 the non-profit professional associations LIMRA and Life Happens.
Millennials – or those between the ages of 22 and 40 – were the most influenced; nearly 50% of those polled said they were now more likely to purchase life insurance due to COVID.
“COVID-19 has raised awareness of the important role life insurance plays in the financial security of families,” said David Levenson, President and CEO of LL Global, LIMRA and LOMA. “Our research shows that 42% of Americans would face financial hardship within six months if the primary employee were to die unexpectedly.
“Young Americans, in particular, are most at risk – more than half of millennials don’t have life insurance coverage,” Levenson said. “The good news is that 48% of millennials say they plan to purchase blanket within the next year. While we know that not all will follow through, our industry needs to help these young adults get the right blanket. who will protect their families. “
If you are considering purchasing life insurance, visit Credible to compare life insurance rates from several suppliers at the same time. You can also look at different life insurance products or consider a long term or permanent life insurance policy.
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Industry expert Megan Cherry, Chartered Agent and Director of Customer Experience at digital life insurance company Bestow, gives five reasons why Millennials should consider life insurance now:
1. You can lock in lower rates while being young and healthy
Buying a life insurance policy when you’re young and healthy with less medical history, and foreclosing on low rates or getting permanent insurance can help you save money. money later.
“The younger and healthier you are, the more affordable coverage will be,” Cherry said. “For example, a healthy 35-year-old woman can purchase a 20-year $ 500,000 policy for as little as $ 20 per month. Unfortunately, none of us know what our health will look like in six months, a year or more. So within a few years, it’s best to buy coverage once you have dependents and lock in that pricing for the life of your policy. “
To verify Credible to see your coverage options and save up to 40% on your regular premiums by comparing life insurance quotes from multiple providers for different types of policies. Credible’s partner, Policygenius, can give you peace of mind by helping you schedule a medical exam, complete paperwork, and negotiate regular life insurance costs with the insurance company.
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2. Millennials create their own families
After getting married and having children, many people depend on their partner or family members for financial support. Millennials are in their prime to start a family, so a life insurance policy can help replace income.
Many experts suggest that policy owners consider a premium amount that is at least the cash value of about five times their annual salary.
“Most couples rely on their partner for some level of financial stability, including sharing big budget items like rent or mortgage and all the expenses to raise a family together,” Cherry said. “With life insurance in place, your loved ones have a financial safety net in case the worst happens”
3. Millennials buy homes
Millennials (even those without families) who are now buying a home should also consider purchasing life insurance that has a policy cash value at least equal to the value of the home. Currently, with the largest population of home buyers, Millennials can get a life insurance policy that at least matches the cash value of their home to help pay off the mortgage, saving beneficiaries or heirs. having to scramble to figure out what to do with the house.
4. Buying life insurance is easy for millennials
The advancement in technology has made buying a lot easier. Many millennials shop or even order takeout using virtual assistant technology like Amazon’s Alexa or Apple’s Siri. Same or next day delivery has become an industry standard, and apps and plugins can quickly tell you if you’re getting the lowest price for an item without having to shop around.
Buying life insurance is no different. With a marketplace like Credible, you can quickly compare multiple providers for different types of life insurance at once and get a quote estimate by filling in quick information like your age, gender, zip code, amount of desired coverage and policy term.
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5. Your employer’s coverage may not be enough
Many employers include life insurance as a benefit, but because it depends on the job, Millennials could lose that benefit if they change jobs.
“It’s usually best to have individual life insurance outside of work, so that you always have coverage in place whether or not you change jobs,” Cherry said.
To sum things up
Millennials are already thinking more about life insurance policies, as around 66% of people surveyed in the 2021 Insurance Barometer study say they have dependents under the age of 18 living in their household. Additionally, the study found that 43% of millennials believe they are more concerned than other generations about leaving their dependents in dire financial straits.
“The bright side of this pandemic for our industry is that awareness of the value of life insurance is at an all time high,” said Faisa Stafford, President and CEO of Life Happens. “Twenty-two percent of American policyholders (29 million) think they need more life insurance. For those without coverage, 59% say they need life insurance, which represents 73 million Americans.
“As educators on the importance of life insurance, we know that when people understand the need for life insurance and buy it, they can take control of an important aspect of their future. financial, ”Stafford said.
If you are interested in life insurance and want to learn about the options available to policyholders, visit Credible for a quote in minutes or speak with a life insurance expert to get all your questions answered.
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