Life Insurance For The Milennial
If you are a millennial, or someone who was born between 1980 and 1999, you may think that you do not need life insurance – or, you may not understand the concept of life insurance at all. In regards to the former, life insurance can seem like it is too expensive to be a priority – this is because many millennials are in the midst of a uniquely generational financial situation where many individuals in this bracket are saddled with the financial and personal stressors of starting a new career or family, trying to find places to live long-term, and most prominently, paying off student loan debt. Despite these financial burdens, however, it is prudent to start thinking about getting a life insurance policy now for a myriad of reasons.
The first reason is that it’s cheap. No, really – life insurance will never be cheaper for you than when you are young. For example, a healthy male living in the state of California applying for a 20 year, $500,000 policy with a major name brand company (that we can’t name for compliance issues’ sake) will stand to pay $37 a month at the age of 25 years old. As time goes on, however, this rate will only increase as it’s more expensive for a company to insure you as you get older. This same policy, at 35 years of age, will cost the same individual $41 a month. As a result, the individual will stand to save around $1000 just by applying a year earlier. This doesn’t sound like much, but you take a large risk by waiting longer to apply for a policy because you have no way of knowing if your health will deteriorate in the time that you choose not to be insured – as a result, you may end up facing worsening health in that time and a higher rate from an insurer because you did not secure a rate when you were in good health. If you wait too long and face adverse health conditions that do not reflect the same level of health you had ten years earlier, you could end up paying a whole lot more – in cases where you receive a Preferred status instead of a Preferred Plus, you could end up paying up to $85 a month – costing you over $1,000 a year for the next 20 years, depending on your term length. Knowing this, it just makes sense to get insured sooner so you don’t get slammed with avoidable costs.
Additionally, it’s equally important to consider that because millennials are often facing financial stressors such as debt and loans, it’s even more important to have a policy with a death benefit. The reason being is that if you are to face an untimely death before having paid off your debts and loans, these financial burdens will not be saddled onto your next of kin. If you die with a policy, your death benefit is paid out to your family and the debt is taken care of using those funds allotted to you by your policy and your family is not saddled with your burdens. Having life insurance takes away a large “what-if” in your future financial planning, where you do not need to worry about what might happen if you are unable to financially support your family in the event of untimely death.
Conclusively, taking out a life insurance policy is something that everyone, even millennials, ought to consider. As part of a structured long-term financial plan, life insurance is a key part of ensuring that you and your family are protected and will give you peace of mind in the long-term knowing that everything will be accounted for should something happen. To speak with an insurance professional on becoming insured and beginning to build the foundation for your future financial plans, visit Pacific Insurance Group online at www.pacificinsurancegroup.com or contact us by phone at 425-246-4222.