Millennials are the demographic cohort that is made up of individuals born between the early 1980s and early 2000s. This group is also known as Generation Y or the Net Generation.
Millennials and Life Insurance
There are four characteristics of millennials that have strongly influenced how millennials view life insurance. They are tech-savvy, skeptical, burning out, and in financial limbo.
Millennials Are Tech-Savvy
Millennials grew up with computers and the Internet.
The phrase “good things come to those who wait” may be hard for millennials to embrace because the Internet has created the desire of instant gratification.
Term life insurance, which is the most common, most affordable, and typically the best option of life insurance, has no instant gratification other than peace of mind.
Studies show that millennials would much rather travel, engage in a fine dining experience, or buy a cell phone, among other purchases, rather than buy life insurance. Those purchases come with instant gratification.
Millennials Are Skeptics
While millennials tend to be open to unconventional ideas like holistic therapies, they are committed skeptics.
A majority of millennials don’t believe they’ll see a penny of the money that they contribute monthly to Social Security.
Many millennials also don’t fully trust the healthcare industry. They prefer to invest in their own health and more holistic medicine and therapies. However, they are much more comfortable talking about their mental health and finding treatment from mental health professionals than previous generations.
According to some sociologists, millennials are the definition of a show me generation. For many, the idea of a possible payout upon an early death—after years of paying premiums (regardless of how extremely affordable term life quotes are for millennials)—just doesn’t seem tangible or relevant enough to merit a second look.
Millennials should know that life insurance isn’t a new idea that may not pan out. It’s iron-clad protection for the people you love.
Once your policy is inforce, your family is protected as long as that coverage is active. If you die unexpectedly during the term, the insurance company pays your beneficiary the full death benefit.
Term life insurance isn’t like health insurance (although that’s important as well). While health insurance takes care of some of your medical bills—it won’t pay for expenses not related to your medical care. Term life insurance can take care of all of your family’s needs, pay off your debts, and replace lost income.
» Compare: Term life insurance quotes for millennials
Millennials Are Burning Out
Nearly half of millennials have a side hustle. And more than half of those with a side hustle need that money to make ends meet.
Even with youth on their side, millennial workers are more likely than workers in older generations to say that they always or very often feel burned out at work.
Millennials don’t want to spend their time outside of work meeting with life insurance agents. It’s something they think they can just deal with later.
Millennials Are in Financial Limbo
Millennials are struggling to find decent paying jobs that allow them to pay off their student loans while also enable them to save up for a home and their retirement. Investopedia states that millennials face the most uncertain economic future of any generation in America since the Great Depression.
Not only do many millennials believe that buying life insurance is a difficult process, but they also assume that it’s too expensive. What they don’t realize is how far life insurance has come.
See what you’d pay for life insurance
Life Insurance for Millennials
Life insurance has come a long way. You can now purchase life insurance from your phone.
Term life insurance is the ideal type of life insurance for millennials. It’s easy to buy and affordable. It lasts for the specific period of time you choose, so you’re only paying for what you need to protect your loved ones.
If you die unexpectedly within the term, your family receives the death benefit. If you’re still alive when the term is up, the coverage ends and your premium payments stop.
Modern consumers, like millennials, can get a term life insurance quote instantly—without giving up any contact information—and then apply in just a few minutes.
Many millennials could also qualify for no-exam life insurance, making their life insurance buying process even faster.
Because millennials are in financial limbo, their death would wreak havoc on their surviving loved ones.
Those especially affected would be the children of the single parent. If that parent dies, they don’t have the income of another parent to fall back on. For these single parent millennials, life insurance is extremely important.
There is always something that can be cut from the budget if necessary to ensure loved ones are protected, but for many this wouldn’t even be needed. The cost of term life insurance is often overestimated.
Millennials specifically overestimate the cost of life insurance by 213 percent! What this means is that for a term life insurance policy that costs $240 annually, most millennials think that policy actually would cost $751.20 annually. That’s a huge difference.
| Quotes for Monthly Cost of a $250,000 30-Year Term Life Insurance Policy for Healthy Non-Smoking Individuals in Their 30s | ||
|---|---|---|
| Age | Male | Female |
| 30 | $18.20 | $15.56 |
| 31 | $18.37 | $16.03 |
| 32 | $18.96 | $16.42 |
| 33 | $19.59 | $16.92 |
| 34 | $20.32 | $17.45 |
| 35 | $20.82 | $17.91 |
| 36 | $22.07 | $18.91 |
| 37 | $23.21 | $19.86 |
| 38 | $25.20 | $20.81 |
| 39 | $26.66 | $21.81 |
Don’t Leave Your Family Struggling
As I said earlier, I am a millennial so it’s no surprise that I have a Facebook account. Every week I am shocked at how many of my peers are sharing links to fundraising websites asking people to donate money to a family they know who just lost a mother or father that had no life insurance policy. These grieving families are in such dire financial straits that they are turning to strangers for help.
More often than not, the families I see on these fundraising sites are young. When you are young you think you have years left to live and you don’t need to worry about any kind of back-up plan. It’s this way of thinking that explains the pages upon pages upon pages of campaigns on the Funeral and Memorials page on GoFundMe.com.
When you die, you don’t want your family’s last memory to be about how you left them in crippling debt trying to pay for your funeral and final expenses. Life insurance puts you in control of the legacy you leave behind.
Right now you may be thinking that you have at least fifty to sixty years with your family, and I hope that’s true, but life insurance isn’t something you should postpone. Life insurance is one of those things that you don’t learn how important it is until it’s too late.
Quotacy makes it easy. Get instant term quotes and apply online in just a few minutes. There is no obligation to buy if you aren’t satisfied or change your mind.
» Learn more: I’m Young, Single, and Healthy. Why Do I Need Life Insurance?
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