“Let's break it down on why millennials need life insurance and how companies are starting to understand this trend.”
We're all going to die someday. That’s one of the only certainties in life, along with taxes. However, a recent study by Budget Insurance found that 82% of millennials don't know the purpose of life insurance—despite the fact they’re aging, starting families and dealing with more complex financial situations.
Forbes’ article, “Why Older Millennials Need To Start Taking Life Insurance Seriously,” notes that, although most millennials may not have given life insurance much thought before, it's now time to begin taking life insurance and other estate planning more seriously. To help with this, more companies are starting to take millennials seriously, when it comes to financial matters. The result? It's getting easier than ever before to get life insurance.
Life insurance is used to protect your family financially, in case of your death. That is important for millennials who are starting families that depend on them financially.
According to Pew Research, 60% of families depend on dual incomes and just 31% of families rely on a single income. A total of 91% of families in the U.S. require the income of at least one spouse to survive. However, what happens if one (or both) die? That's where life insurance comes into play.
Because millennials are still relatively young, getting life insurance is very cost effective. In addition, for the vast majority of millennials, a simple term life insurance policy will do the job.
Term life policies are very inexpensive and can be a financial relief, if they’re ever actually needed.
It's possible to get a $1,000,000 term life insurance policy for about $40 per month, depending on your age and health. That is quite a bit of insurance for little expense.
With the increase in millennials who require life insurance, many insurance companies are making buying life insurance very easy.
These companies have online or app-based solutions that focus on speed and ease of use. These companies leverage technology and keep human interaction to a level that most millennials like.
Reference: Forbes (January 26, 2019) “Why Older Millennials Need To Start Taking Life Insurance Seriously”