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Why do Millennials need life insurance?

Do you prefer to learn by watching? We answer this question in a video below. Click here to jump ahead.

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

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

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
AgeMaleFemale
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?

Watch the Millennials and Life Insurance Video

Video Transcript

Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance broker where you can get life insurance on your terms.

I’m Jeanna and I’m Natasha.

Today’s question is:
 
Why do Millennials need life insurance?

A Millennial is anyone born between 1981 and 1996, making them today between the ages of 23 and 38. Many Millennials think they’re too young for life insurance, but this just simply just isn’t true.

The need for life insurance is not determined by your age. It’s determined by whether or not anyone depends on you.

» Calculate: Life insurance needs calculator

If a Millennial is married or has a domestic partner, then they have someone who relies on them.

If a Millennial has children, then life insurance is incredibly important.

If a Millennial wants children in the near future, life insurance is definitely something to look into now.

Term life insurance for people between the ages of 23 and 38 is very affordable. Life insurance rates are currently at an all time low.

For example, a 30-year-old healthy couple could buy $500,000 of term life insurance that would last them 30 years for about $30 per month each.

example of 30 year term life insurance quotes for healthy young millennial couple

And with a traditional term life insurance policy, this premium amount is locked in for the entire 30 years. Your price will never go up during the term.

But while life insurance rates are at an all time low currently, we don’t know when they’ll go up.

A new report by Moody’s Analytics revealed that Millennials unfortunately face much higher mortality rates than their predecessors Generation X.

Specifically, the research found that Millennials’ physical and mental health is declining faster than that of Generation X, essentially killing them sooner rather than later. The report revealed that Millennials face troubling health conditions such as high blood pressure and high cholesterol, major depression, and hyperactivity.

While these conditions are very treatable, the cost of healthcare is skyrocketing. And as these young adults need to take time off work to pay attention to their health, unemployment is increasing while their income is not. The stress of trying to be able to afford taking care of themselves is contributing to a vicious cycle of even greater prevalence of these physical and mental health conditions.

Life insurance rates are based on the mortality rates within certain groups of people. Because the current young adult generation as a whole just lost years of their life with one report, who knows how this will affect the life insurance industry.

Life insurance rates for Millennials are extremely affordable right now. With their mortality rates increasing as a whole, it makes sense that life insurance rates may also increase.

» Compare: Term life insurance quotes

There is no time like the present to buy life insurance. Quotacy makes it easy.

Pop in a few pieces of information and get term life insurance quotes. No need to even give away contact information until you’re ready to send in that online application.

You’ll be assigned to a dedicated Quotacy agent that will do behind the scenes work to make sure you’re getting the best price life insurance. They comparison shop so you don’t need to spend the time doing it yourself.

After getting a final policy offer from your chosen life insurance company, if you aren’t happy with it, your Quotacy agent will work with you to find a better option.

You can even walk away if you decide that’s what’s best for you. No cancellation fees, no hurt feelings, no stress.

So, what are you waiting for?

If there is anyone who financially relies on you, or if you want to start a family soon, go get yourself a term life insurance quote.

If you have any questions about life insurance, make sure to leave us a comment. And if you’re ready to get quotes, check out Quotacy.com. We’re here to help you find the best deal on the life insurance you want.

About the writer

Headshot of Natasha Cornelius, a life insurance writer, for Quotacy, Inc.

Natasha Cornelius, CLU

Senior Editor and Life Insurance Expert

Natasha Cornelius, CLU, is a writer, editor, and life insurance researcher for Quotacy.com where her goal is to make life insurance more transparent and easier to understand. She has been in the life insurance industry since 2010 and has been writing about life insurance since 2014. Natasha earned her Chartered Life Underwriter designation in 2022. She is also co-host of Quotacy’s YouTube series. Connect with her on LinkedIn.