Category: Life Insurance Blog
6 Life Insurance Tips for Millennials
September 14, 2017 Richard Reich
Although we grow into adults year by year, there can still be a shock to our systems when we find ourselves out of school and out of our parents’ home. Regardless of how prepared we may believe we are, complicated issues are thrown at us every day and in every manner. Yes, there is the internet and all of the information it provides, but what happens when you begin reading conflicting advice columns and articles? Sooner or later you have to pick a solution and go with it, no matter what the issue you’re facing. Here we just want to offer six life insurance tips for millennials.
Even if you’re still at home and possibly insured under your parent’s health plan, you should consider what will happen if you die unexpectedly because when people die, it costs someone some money. Why leave your parent’s with the cost of your funeral when you can take care of it ahead of time? If you are young and healthy, your cost for life insurance really shouldn’t be an issue.
Tips for Millennials to Consider
- Your life insurance is a form of financial protection for surviving loved ones.When you Google “life insurance” you’ll get an enormous amount of articles and ads advising you how cheap life insurance can be, but there’s not a whole lot of compelling information that explains why you should buy it. That’s probably because no one wants to discuss the possibility of a 25-year-old dying. Just thinking about leaving a $10,000 funeral bill to your surviving loved ones is something you’ll rarely consider. If you think just because you’re a single 20 something, nobody would be left in the lurch? Read on.
- Your college debt may become their college debt. Did someone—like maybe your parents—co-sign your student loans through the bank? If that’s the case, the bank is unlikely to discharge the debt because you’ve died unexpectedly like the way that the federal government would with federal student loans. That means your parents, or others who had so much faith in you and wanted to invest in your future and signed the paperwork, would be responsible for paying the remaining balance, and in some cases, they’ll want their money immediately. Certainly, you don’t want to pass on your debt to those you love.
- If you don’t know much about life insurance, you probably shouldn’t buy it off the internet and directly from an insurance company.Although life insurance is considered a product, it’s probably best if you don’t purchase it in the same manner you do concert tickets, power tools, or electronics. Life insurance is a financial planning product and a contracted promise, and while it can be as simple as a one-page online application, there will be terms and options that you’re likely not going to understand. Speaking with an insurance professional can ensure that you get the right amount of insurance for the right length of time and at a price that you consider affordable. Although many agents prefer to sell online in today’s marketplace, they will always be willing to speak with you on the phone, so they can help you navigate your coverage and options, and make certain you can make an informed decision. They will act as your advocate before the insurance company and help you get what you need at a price you can afford, and most importantly, you’ll understand what you’re purchasing BEFORE you pull the trigger.
- Social fundraising only goes so far, and not everyone has empathy.Yes, today’s environment allows for crowdfunding through platforms like GoFundMe, but isn’t this the same as passing debt on when you die? Your grieving loved ones will typically not be comfortable with setting up a crowd funding account and will probably want to keep these matters in the family. There are several expenses to consider and could easily add up to more than $150,000 if your student loans are through your parent’s bank. You might prefer a simple cremation without a service, but your parents or siblings will probably want quite a bit more than that when they have to say their goodbyes.
5. Life insurance is so much cheaper than you might imagine. In most cases, millennials are not aware of how cheap their insurance may be. When you’re young and healthy, life insurers will consider you a very good risk and will be willing to accept a very low premium for your coverage. Here are some examples that will give you an idea of how cheap life insurance can be:
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- The best time to buy your life insurance is now.You can never be younger than you are today, and for most of us, the younger we are, the healthier we are. Age and health are two of the most important factors when you are purchasing affordable life insurance coverage. But things can easily change. Each day we are alive we are at risk of accidents and illnesses. If you are healthy now, buy your insurance. Since you are younger today, buy your insurance. Waiting only adds more risk and higher insurance rates.
Hire a Professional since it costs You Nothing
The great thing about using an experienced insurance professional when you are looking to purchase life insurance is you are able to ask all the questions you might have, and he or she can shop your policy with all the life insurance companies they represent. Yes, an independent agent will be happy to write your policy when it may only cost $13 a month. Yes, an independent agent will want to establish a long-term relationship with you because things change and they will want to be there when events may cause you to need more coverage. And best of all, the insurer pays them – you don’t.