Many millennials believe that they don’t have to invest in life insurance yet. They’re young, they’re healthy, and many of them don’t yet have extra income to roll toward life insurance. What can putting it off for a few more years while they develop a stronger job base hurt? Life insurance for millennials*, however, has a number of key benefits that shouldn’t be ignored.
You’re young. You’re healthy. You might not even have children yet, which means that you aren’t worried about providing for the people left behind you. At the same time, you don’t want to put those individuals deep in debt, either. Funerals are extremely expensive–the average cost is more than $7,000**–and you don’t want to leave that burden on the people you love. Since you can’t guarantee that an accident won’t happen or an illness won’t take you, life insurance can have a huge impact on your preparation for those possible events.
You Have Debt
All too many millennials headed out into their chosen careers carrying a hefty student loan debt–an average of over $25,000***. If you’re carrying a large student loan debt, take the time to think about how it’s going to be paid off if something happens to you. Your parents or other loved ones may have to take on the burden of that debt in the event of your death, especially if they cosigned on loans for you while you were in school. Other debt adds up fast, too: car loans, a mortgage, and credit cards can all be a shock to the ones you leave behind. Life insurance that can help pay off that debt is a great way to ensure that you won’t be placing that heavy burden on the shoulders of those you love most.
It’s More Affordable Now
Getting life insurance when you’re young, healthy, and living a lifestyle with minimal risk can be much less expensive than the costs you’ll have to pay if you wait until you’re old enough to start having health problems to get life insurance. The younger you are, the less expensive a life insurance policy can be. Choosing a policy now may help you pay less in the long run–a decision that you’ll appreciate as you get older and your premiums start to increase.
Your Dependents Need Help
Many employers offer a basic life insurance package for their employees: one that will take care of end-of-life expenses and help pay for a funeral. Unfortunately, if you have dependents, that small amount might not be enough. Today, it’s often necessary of both members of a couple to work in order to maintain their lifestyle. If you died suddenly, would your spouse’s job support them alone? What about your children? Life insurance is a key part of providing for the ones you love most even if something happens to you.
Save Toward Retirement
If you aren’t convinced that you need to prepare for the people you love after you’re gone, then consider preparing for your own future! Some life insurance policies can also be used as retirement savings accounts. As you continue to pay the amount of the premiums over the years, the policy increases in value. When you retire, you can use some of the money in that account for your own expenses, allowing you to increase your retirement savings while still preparing for the event of your untimely death.
Life insurance is something that many millennials don’t want to think about, but it’s time to shake off the stigma and start thinking. This critical investment can have a huge impact on both your future and the future of your loved ones if something happens to you. Typically, life insurance is a comparatively small investment with a huge return, making it well worth the expense for the security it provides.