Millennials are notorious for staving off a lot of traditional adult milestones like getting married, having children and buying a home. Now you can add buying a life insurance policy to that list.
The LIMRA and Life Happens 2016 Insurance Barometer Study has found that 51% of millennials own a life insurance policy, which means that 49% do not. So it’s an almost even split between those who own and those who don’t.
When you’re in your early 20s or your 30s, you might think that life insurance is for old people. But it’s never too early to start planning for your future. Here are a few reasons why millennials should consider life insurance today…
It will protect the co-signers on your private student loan debt
We all hear about the student loan debt bubble constantly. But there’s a dark side to the problem that doesn’t get exposed as often.
This may sound crazy, but if a parent or relative co-signed a private student loan for you, then your untimely passing could throw that co-signer into immediate default.
Private student loans commonly contain a clause that lets the lender call the loan due in full if you as a co-signer die or declare bankruptcy. Getting a private student loan debt discharged after your death can be quite an ordeal. (Federal student loan, meanwhile, will be immediately discharged on your death.)
Term life insurance can help protect against this ugliness.
It will be cheaper now than it will later
When you’re a millennial, time is on your side. After all, you’re not a 45-year-old dude with high blood pressure and diabetes who smokes and is trying to pass medical underwriting for an insurance policy!
So because you’re young, buying term life insurance will be cheap. One non-profit insurance industry group says that a healthy 30-year-old man can get a $250,000 level-term policy for 20 years at a cost of less than $13 a month. That’s around $150 a year…and the price never goes up with a level-term policy!
Sales of insurance are increasingly geared toward millennials
Forget about the old thing where you had to sit down with a stuffy insurance salesman to buy a policy. Today you can comparison shop for term life insurance quotes at any of a number of sites like HealthIQ, Ladder.com, Quotacy.com, PolicyGenius.com, 1stOptionInsurance.com, Insure.com, AccuQuote.com or QualityTermLife.com.
By shopping online, you avoid an insurance salesperson trying to up-sell you from level term coverage to another insurance product that may be unsuitable for you.