For people in their 20s and 30s, planning for death is usually the last thing on their minds. Things like life insurance and funeral costs etc. are questions for seniors, not millennials, right? Well, in many cases, yes. For young healthy people without dependents, life insurance might be an unnecessary extra expenditure. However, there are a number of reasons for millennials to look into life insurance, and more and more of them purchasing policies every day. So before you dismiss the idea completely, you might want to consider the following:
Debt
Student loan debt has been growing at an exponential pace over the last decade or so. In fact, about 70 percent of bachelor degree candidates leave school with at least some amount of student loan debt. So, if you’re a millennial, chances are you’ll be paying for your education for years to come. And while government subsidized student loans are forgiven in the event of death, private loans might not be, which means that your debt could become your family’s burden should tragedy strike. So if you’re carrying some debt from school, you might want to think about life insurance, especially if you used a co-signer to get your loan, because if you happen to pass away, he or she could become responsible for the entirety of the remaining balance.
Funeral & End of Life Expenses
Funerals can cost anywhere from $5,000 to $15,000, which is enough to put a serious strain on any family. And should you need hospital care before you pass away, your family would also be responsible for your medical bills, which can add up fast. You don’t want to compound your family’s grief with the added burden of costly bills and medical fees.
Lower Premiums
Even if you’re completely healthy, debt-free and unmarried right now, there’s still at least one great reason to buy life insurance – it will be MUCH cheaper. The longer you wait, the more your insurance policy will cost once you finally purchase it. Buying life insurance now could lock in an affordable premium so you won’t have to worry about making some outrageous payment later on. Also, there’s always a chance that you won’t even be eligible for insurance when you need it. Even young people with mild health issues can have trouble getting insured. The older you get, the harder it might be to get the coverage you need.
Life insurance is really just about peace of mind, about having one less thing to worry about as you continue building your life. And even though you might not need it anytime soon, you really never know what’s around the next corner, so why not be protected just in case?