It’s beneficial for millennials to understand the importance of having the proper life insurance coverage. You never know when the unexpected can happen, so making sure you and your loved ones are protected with a life insurance policy is a safe way to ensure a secure future for everyone.
Life Insurance in Numbers
Currently, more consumers say they “need” insurance than they say “own them.”6 Specifically, 1 in 5 adults who don’t have life insurance say they need coverage.4 Furthermore, 1 in 5 adults who have life insurance say they don’t have enough.2
So if nearly 20 percent say they don’t have enough, how many are millennials? While 57 percent of adults in total have life insurance6, only 52 percent of millennials have life insurance.3
Millennials are considered anyone born between 1981 and 1998, and make up nearly 40 percent of the U.S. population.7 Hence, with millennials being a large part of society, it’s important to stress the need for life insurance as they continue to age.
Life Insurance Ownership
With only just over half of all millennials owning life insurance, it raises the question – why are they so hesitant to purchase it?
One major reason is that 73 percent of them say it’s too expensive.3 Additionally, 42 percent say they wouldn’t qualify for coverage, even though only 15 percent of seniors say the same thing, despite it typically being easier to qualify the younger you are.3 In reality, 44 percent of millennials overestimate the cost at five times the actual amount.5
Other reasons include 50 percent saying no one’s approached them about it, 52 percent don’t like thinking about death, and 58 percent say they haven’t gotten around to it.3
Finally, 80 percent say they’ve got other financial priorities right now, including: 61 percent cost of living expenses – rent, mortgage, groceries, electricity, etc., 57 percent expenses such as internet, cable, cell phone, 38 percent activities such as going out to eat, movies, shopping, etc., 23 percent saving for vacation,3 and being uncertain about product types, coverage amounts, and qualifying for coverage.4
Whatever the reason may be, it’s important to know there are resources, such as reaching out to life insurance companies and local licensed insurance agents, who are willing to assist in helping to understand and purchase life insurance.
What Would Make Millennials More Likely to Purchase Life Insurance?
8 in 10 consumers have stated they want something that’s easy to understand, and 74 percent of millennials agreed.3
Millennials are looking for a quick and easy process to increase their likelihood of purchasing life insurance.3 With so much information to read up on, they want to bypass the word count of long policies and find a more interesting way to learn more information.
So, what would be a more convenient way for them to go about this process?
7 in 10 consumers find life insurance with “simplified underwriting” to be appealing,3 because purchasing coverage means not having to undergo medical testing. 6 in 10 millennials agree, because it usually eliminates the need to be tested by an examiner, is unbiased and objective.3 However, this varies by company so it’s important to refer to your specific policy.
There are numerous methods in which millennials can go about obtaining coverage. This is when they must decide which route they want to take.
Overall, 7 in 10 consumers want to talk to someone about their life insurance needs.3 This is because it’s quick and also assuring. When it comes to millennials, over half would research life insurance online, but they would purchase life insurance from a financial professional.2
Additionally, social media is another way millennials are reaching out to learn more about life insurance. 54 percent are likely to ask their connections for recommendations about a financial professional who can help advise them.4 Of this percentage, only 1 in 3 millennials actually have a financial advisor.4 This is because 50 percent say they don’t want a primary financial supervisor.4 Ultimately, any approach works, it just comes down to personal preference.
How to Obtain Coverage
The following four steps are ones that will help millennials go about obtaining coverage:
- Determine a policy that fits your needs.
- Compare prices of different life insurance companies with a strong financial strength rating.
- Contact a local licensed insurance agent.
- Once you’ve chosen a policy, carefully review it before making a final decision.
Benefits of Life Insurance
In the end, obtaining coverage all comes down to the benefits of having life insurance.
Life insurance is a way to protect loved ones, whether it be your spouse, children, aging parents, or anyone else you care about.
For instance, 4 in 10 households would have immediate trouble paying living expenses if their primary wage earner died.5
Thus, with life insurance, can help cover costs which include, but are not limited to, the following:1
- Childcare costs
- Daily living expenses
- Income replacement
- Funeral or expenses related to death
- Paying off a mortgage or other outstanding loans
- It could mean your beneficiary won’t have to sell assets to assist in paying bills or taxes
No matter what your reasoning may be, make sure to reach out to your life insurance company or local licensed insurance agent to make sure you get the proper coverage for you and your beneficiaries. It’s never too late to give the gift of financial security.
Acli.com, What You Should Know About Buying Life Insurance, 2019
III.org, Facts + Statistics: Life Insurance, 2019
Lifehappens.org, Here’s Why Millennials Aren’t Buying Life Insurance, 2017
Lifehappens.org, Key Finding for the 2018 Insurance Barometer Study, 2019
Naic-cms.org, Life Insurance Myths Can Lead to Protection Gaps, 2019
Tbrins.com, 2019 Insurance Barometer Report, 2019
Verisk.com, Millennial Consumers and the Insurance Industry, 2016
Categories: Insurance, Life Insurance