What do you know about “millennials” or Generation Y? To start with, people who fall into this category are between the ages of 18-34 and were born right around the turn of the millennia.
Overwhelmingly, this group is environmentally aware, choosing to ride share using Uber or Lyft over buying a gas guzzler. They are more likely to invest in something if is tied to environmental responsibility. This generation is adventurous when it comes to trying food of all varieties including food trucks and Asian street food. They value “experiences” over material ownership. And they love social media apps more than any other generation that came before them.
This is also the generation that follows a very specific pattern when it comes to financial matters. Millennials pay off student debt, save vigorously for their first home, invest heavily in 401Ks, and work hard at kick-starting their careers.
Unfortunately, the vast majority of millennials have one major flaw in their financial preparedness: approximately, three-quarters of young American adults don’t have life insurance. (Forbes) This means that millennials who are married, have partners, or even have started a family, are risking their loved one’s financial safety in the case of a calamity occurring.
There are many reasons why millennials are indifferent to the idea of life insurance. Many who owe student loans, prioritize that short-term payment over the security of life insurance. Some feel the health questions are too intrusive. Others, believe it is too costly, or the process too lengthy. Still others are saving for something in the future, such as a home. Finally, some millennials don’t think it really matters because, in the case of a death, crowdfunding like “GoFundMe” or “YouCaring” could help financially.
Is This Reasonable For Not Getting Life Insurance?
While these reasons may, at first glance seem reasonable, we can give some examples of how life insurance may be a better choice financially.
No one wants to consider their mortality. But as a head of household, millennials should consider how the rent, mortgage, or other bills will be paid in the case of their demise. Without that guaranteed safety net there is no way to be sure about the financial stability of your spouse or family after you have passed.
Starting on other goals such as saving for a home purchase or completely paying down your student loans, may seem responsible, but what if you pass and you have left your family with that newly signed mortgage or the remainder of your debt? With life insurance, your bills will be covered.
For those who believe life insurance is too costly, think again millennials. Life insurance will never be cheaper for you than it is at this moment. Life insurance premiums increase by an average of 8-10% every year you put off buying it.
Relying on crowdfunding is taking the biggest gamble of all. Do you really want to stake the financial security of your family or spouse on the generosity of others?
Are you a millennial who has not talked to an agent about life insurance yet? Talk to our specialists who can tell you what is involved and how much it is likely to cost. Call Phil Richard Insurance at 978-774-4338 or visit our website.