The predilections of millennials are on the minds of most industries these days. But what about insurance options? Many millennials below the age of 26 are still on their parents’ health insurance policy, and will soon have to start thinking about adopting a policy from their employer or from the health care market.
But when it comes to life insurance, it’s a whole different ballgame. According to recent reports, few millennials have even begun to think about life insurance.
Young people think life insurance is something you need to think about when you get old, certified financial planner Shannah Compton Game told Time. Its a conversation topic for their parents, not them.
And indeed, the current statistics reflect this sentiment. In 2010, the percentage of US households with life insurance was at 44% — a 50-year low in comparison to when in 1962, 72% of households had some form of life insurance. And while 85% of general consumers agree that life insurance is a necessity, only 62% have a policy.
Many of the millennial generation’s reluctance to consider life insurance is the fact that other expenses matter more. While this widespread perception may be true, it’s wise to start thinking about life insurance at any age, even if it’s just a matter of planning for the future. According to Time, many millennials are reluctant because they feel they wouldn’t be able to afford a life insurance plan. In truth, many life insurance plans are extremely manageable, starting at $20 to $30 a month per policy.
For the most part, you don’t need to start thinking about life insurance before the age of 30. However, when one gets married, has children, and accrues a legacy, life insurance is an essential means of securing a safe and concrete financial future for their loved ones, long after they pass. There are also the 40% of Americans who have life insurance that believe that their policy isn’t enough; luckily there are ways to change or increase policies with time.
Start thinking about your future now, and contact your insurance agency today.