In today’s ultra-connected world, millennials are doing it all! From navigating the job market to starting families and championing social causes – securing life insurance may not be at the top of your to-do list.
But what if we told you that purchasing life insurance as a millennial can not only give you a financial advantage, but also peace of mind for the future. Would that pique your interest? In this blog we’re sharing some of the key benefits to purchasing life insurance while you’re younger, and what options are available to you as a millennial looking for reliable coverage.
Benefits of Life Insurance for Millennials
With a clean bill of health and youth on your side, millennials can often secure coverage at a lower rate than older generations. Life insurance premiums tend to rise as people get older and health issues surface. Most millennials aren’t facing chronic illness diagnoses which may increase the risk of passing away early. Life insurance providers will take health status and age into account when determining premiums.
Meanwhile, as a millennial, your family members (mother, father, siblings) are also likely younger and also less likely to have health issues to disclose, which may help you secure lower rates. Life insurance providers review family health history and factor this information into your life insurance premiums. If you have family members who have chronic illnesses, this may result in your premiums increasing since genetic predispositions could increase your own risk of similar illnesses.
Control your financial future
Between rising inflation and skyrocketing home prices, millennials have plenty of financial hurdles to overcome. Many millennials have exorbitant debt compared to their parents’ generations. While millennial incomes may be higher than previous generations, their mortgage debt remains larger in comparison. Post-secondary education is another debt that weighs heavily on the shoulders of millennials, especially considering the rising cost of tuition. For many, these debts linger well past graduation. If you’ve recently purchased a house, your mortgage debt is also at its highest. If you were to pass away, consider that the debt burden you leave behind would be passed on to your loved ones.
Planning for your financial future is one way to regain control. Life insurance can help ensure your loved ones aren’t left to foot the bill for any outstanding debts or final expenses that you may leave behind in the event of the unexpected. Further, if you have dependents, your coverage can replace your income, ensuring that their lifestyle is not impacted by your passing.
Life insurance can not only safeguard the financial future of your loved ones but can also let you leave a legacy. The death benefit of a life insurance policy can be used to leave a donation to a charity or organization that is close to your heart, helping bring them closer to their goals.
Types of Life Insurance for Millennials
As a millennial, you have the opportunity to choose from a wide variety of life insurance options offering various benefits based on your coverage preferences. These plans are categorized into two groups that define your length of coverage: term life insurance and permanent life insurance.
Term life insurance
Millennials have a lot on the go! From post-secondary education to marriage and kids, they’re moving through the life stages- fast. Term life insurance is coverage for a specified period (usually 10, 20, or 30 years). Your premium remains the same over the course of your term. This may be ideal for millennials who want to have coverage while their debts are at their highest. Should you pass away during the term, your life insurance death benefit may cover these debts, and if applicable, your income would be replaced. Once the term is over, you can choose to renew, but your premiums will be higher since you’ll be older and may have health issues.
Permanent life insurance
Permanent life insurance provides coverage for a lifetime, at a fixed premium. As a millennial, you have your age and good health as an advantage. When insurance providers underwrite the policy, they consider a variety of factors including age and health. That means if you’re younger when you purchase a permanent life insurance policy, you can lock in a lower rate which will be fixed until you pass away, regardless of aging and health issues.
You may not know where to begin when it comes to planning for the future with a life insurance policy. An insurance broker will act in your best interests and can guide you through the process of purchasing life insurance, helping you to select the best plan to align with your budget, financial goals, and future needs. The team at Keller & Associates Insurance Brokers has the knowledge and know-how to help millennials like you find affordable, reliable life insurance options. Get in touch with our team today to enjoy the protection you deserve.