Insurance for Millennials
October 21, 2015
Leveraging time with your age and health.
Haven’t given much thought to life insurance right? You’re young and healthy and let’s face it, life insurance isn’t as exciting as finishing your favorite series on Netflix or planning your next vacation. But it certainly is something to consider.
Here are our reasons why millennials may want to consider life insurance:
Covering debt — Even if no one depends on your income, you should consider your debts and your burial expenses. Many parents have helped their kids with student loans by either taking out Parent PLUS loans or cosigning for them. If so, would your dad and mom be able to absorb your debt and make those monthly loan payments without burdening their retirement plans or budget?
Covering end-of-life expenses — The average funeral costs between $10,000 and $15,000. Some debts will just go away and others will be collected through whatever assets you leave behind. If you’re newly married and have accumulated credit card debt on a shared line of credit, bought a home together or even signed a lease, take into consideration whether your spouse would be able to handle the financial responsibility alone.
Lifestyle risks — On occasion you need to go out of town, perhaps on a business trip or a weekend getaway. Give serious thought to whether or not an unlikely event could happen. If you or both you and your spouse die, don’t leave your children without a way for a family member to care for them properly.
Life insurance through work
If you have a good paying job with excellent benefits, life insurance may already be included through your employer’s plan. What your employer offers most likely will be basic coverage that may not meet all your family needs.
Age has no barriers on illness — If you become sick and are no longer able to work, your work policy will no longer cover you. If you get diagnosed with a terminal illness, securing a life insurance policy may not be an option. There are life insurance policies that can be taken out that have the ability to be borrowed against in the event you need to have medical costs covered.
Why now is the best time to buy life insurance: price
Being a millennial, you have the best chance of locking in a low price. The price of your policy will be largely based on your age and health, two things you have in your favor but will not last forever.
Contact us to find the best coverage for you and for your family.
This article was featured in our Millennials Special Edition of 4SIGHT. Sign up free to receive 4SIGHT, our monthly newsletter of helpful financial articles, tips, events, and monthly IRS deadlines.