If you’re a millennial, you may think, “Why do I need life insurance? I’m young and healthy – that’s something I shouldn’t have to worry about right now.” It’s true that no one likes to think about their death. However, having life insurance is just as important for millennials as it is for the older generations. According to Forbes, “only 10% of millennials say they have enough life insurance in place to cover self-reported needs should they die.” This means that their families are left with those expenses if something terrible were to occur. So the question is, “Why do I need life insurance?” We have five great reasons for you!
1. Lower Costs
When you are young and healthy, you are low-risk customer! This means that affordability shouldn’t be an issue. Bonus points if you are a non-smoker and have no pre-existing conditions – you will enjoy the lowest rates possible! Consider locking in that affordable rate for a 30-year term too, especially if you have long-lasting debts like a mortgage or student loans. It will never be cheaper than it is right now!
2. Loan Debt
Speaking of debt, many millennials enter the workforce with mountains of student loan debt. If something tragic happens to you, then your family will be stuck paying those off, as well as any other debts you have incurred. Having life insurance in place will give them peace of mind and help them grieve their loss without being in a financial bind.
3. Funerals Are Costly
Funerals are becoming more and more expensive. Unless your family buries you in a plain wooden box, with no help from a funeral home, it will be costly. On average, a funeral costs between $7,000 to $9,000. If you have life insurance coverage, you can relieve your family of the financial burden of an expensive burial.
4. Your Employer’s Life Insurance May Not Cut It
You just landed a new job with benefits. That’s great! However, most employers only provide 1-3 times your annual income in life insurance coverage, and that’s not enough. You need 10-12 times your income to ensure that your family can take care of any outstanding debts if you pass away, especially if you own a home or have young children. In addition, if you ever left your job, you wouldn’t be able to take that policy with you! So it’s best to have an individual policy outside of work with the right amount of coverage.
Taking care of your family is the most important thing you can do but, if you die, your income dies too. Of course you are more than an income to your family, but those funds are vital to anyone who is dependent on you! Having the right amount of life insurance in place would allow your family to take care of any final expenses and maintain their current lifestyle after you’re gone.
Life insurance may not have been a priority for you, but in reality, planning for the future should be a priority for all of us. Dave Ramsey says, “Life insurance isn’t a way for you to get rich. It’s a way to protect your family from going poor.” So, isn’t about time you got life insurance?
P.S. Not a millennial, but know someone who is? Pass this blog along to someone who needs to know the importance of life insurance protection!