Millennials are a demographic known for being tech-savvy, in need of instant gratification and being buried in debt. And for many, having insurance on a $500 phone is the priority over insuring their own lives.
I regularly talk with 20- and 30- somethings that are obtaining their own car insurance for the first time or buying their first home. Often, our conversation will turn to how much debt they have between their student loans and credit cards now that they are in the “real world.” They know the loans will need to be paid off, but what many don’t know is that if they were to die their parents – who have co-signed on private student loans – would be responsible for their debt.
Introducing and explaining the importance of term life insurance to millennials is usually an eye-opening experience. Many have the perception that its expensive, or they don’t think it is necessary at their age. Others say they can’t afford it right now, but will buy it one day.
The truth? As a young adult, term life insurance can be pretty inexpensive. For under $200 a year, a healthy 20- something can get $200,000 in coverage for the next 20 years. This will protect their parents or spouse in the event of their death. On the flip side, waiting until your forties to buy life insurance will increase the cost.
It’s understandable that being buried in debt in your 20’s and 30’s is stressful, and often there isn’t a lot of extra money around. And no, there is no real instant gratification in buying life insurance. But knowing that loved ones won’t be taking on your debt is pretty rewarding.
Many millennials spend money on travel, dining out or material goods. By making small reductions to these expenditures, term life insurance can find a way into the budget and will prevent a long-term burden on family members and loved ones.