Do Millennials Need Life Insurance?

Considering the unending list of financial worries that millennials face, you might assume that life insurance should be the least of their burdens. Life insurance is often the last thing that millennials consider. They are more concerned with getting their bills paid and budgeting. However, if you have dependants, life insurance should be on the top of your list.

Most young people are bsuy accumulating home equity, saving up and building a fat 401(k). Until you build a large empire, life insurance is the only thing that will ensure the financial stability of your dependants. The stakes increase with family.

Can a millennial afford life insurance?

Yes, all you need is to find a proper policy. If you are 25 years old and in good health, you will not have to spend more than $60 per month in life insurance that pays $1 million if you died in the next 25 years. A 35-year old can budget for about $70 per month for a policy that will pay $1 million. You can even land better deals if you shop online.

Life insurance facts millennials should know

1. Think about what you require

Ask yourself, “If I die today will I leave a financial gap?” If your answer is yes, then you need to purchase life insurance.

2. Get a comprehensive cover

When considering the amount of death benefit you require, make sure you think long term, not just whether the utility bills will be paid. In case you are married, think about how they will pay mortgage in your absence. If you have kids, plan on how they will continue schooling.

3. Shop around

Most employers who offer a base level of life insurance also allow their employees to purchase additional coverage. If you do not have a pre-existing medical condition and you don’t smoke, odds are that you will get a better deal than what you are buying through the employee. When purchasing through your employer, remember to inquire whether the coverage is “portable”, in that if you can keep your insurance even after leaving that job.