Yes, we’re talking to you…
If you’re a millennial, you’re probably thinking “Why do I need life insurance? That’s something I shouldn’t have to worry about now.” The truth is, no one likes to think about their own death. It can be hard enough keeping up with your friends, your love life, and your mental health, let alone plan for what could happen decades from now.
Life happens fast – and before you know it you’ll have a mortgage and dependents to think about. (If you’re not already there) Take time now to think about your future.
So, the question is “Why do I need life insurance?”
Here are 5 reasons why you might need life insurance…
1. Costs of life insurance are lower
Every insurance policy measures the risks involved and life insurance is no different. Life insurance premiums are based on several factors, including your age and overall health. As a young and healthy person, you pose less of a liability to the insurance company. This is especially true if you don’t smoke or have any preexisting health conditions.
Now is the best time to secure your future. If you wait until you’re even older to buy life insurance, you may see a monthly cost rise. Looking at rates now can help you to lock in a good rate for the rest of the policy, saving you money along the way.
2. Loans Don’t Disappear
About 69% of students from the Class of 2018 took out student loans, graduating with an average debt balance of $29,800.
Many millennials enter the workforce with more student loan debt than they can handle. This is often the reason millennials shy away from getting life insurance. After all, why would you want to take on another expense when that money can be used towards your loan?
The reality is that life insurance can be especially important if you have student loans. For instance, if something were to happen to you, your student loan debt could fall on your parents or spouse. Investing in life insurance can provide peace of mind and save your loved ones from being in a financial bind.
3. Others depend on your income
Even if you don’t have any children, you may still have dependents. Dependents can also include a spouse or long term significant other who shares assets with you. How might their life be affected if your income was suddenly gone?
Having life insurance sets your dependents up to continue living a normal life without additional financial stress. It can also help you to provide for your future such as protecting future children or your own financial goals.
4. Funerals are costly
According to the National Funeral Directors Association, the median cost of a funeral for the calendar year 2016 was $8,508. The cost can range, of course, depending on the services.
From a financial standpoint, not many people prepare for a funeral. Funerals are emotionally overwhelming, there is no reason to add additional stress from finances. Life insurance can help with the costs related to a funeral, and take the financial stress away from your loved ones.
5. Employer insurance may not cut it
Working for a company that covers insurance can be beneficial, but does not always keep you fully protected. For example, if you get sick and can no longer work for the company, then your life insurance plan may be stopped as well. In addition, if you ever leave your job, you wouldn’t be able to take your policy with you.
It’s a good idea to check with your human resources department to see how much life insurance (and what type of life insurance) you have as part of your benefits package. Having your own individual policy outside of work may be the best option to ensure you have the right amount of coverage.
Thinking about your future can seem confusing and even daunting. However, it’s something that all millennials should consider as part of their larger financial plan. Learning as much as you can about the basics of life insurance(Insert blog link) can give you the knowledge to keep you and loved ones fully protected. If you have any questions regarding life insurance or the right coverage for you, Boyd Insurance & Investments is here to help. Request an online quote today or call us at (941) 745-8300.
P.S. If you’re not a millennial, pass this blog along to someone who should know the importance of life insurance!