Life insurance is a contract between a policyholder and the insurance provider to provide death benefit upon the death of the policyholder, for the beneficiary under the policy for a premium paid regularly.
The millennial generation is the generation of people born between 1981 and 1996. Millennials are at different stages of their life. A good number of them are currently young professionals focused on their careers, some are students, while others are starting new families.
The Attitude of Millennials Towards Life Insurance
Generally, people do not like to think or discuss the idea of death. This applies to both old and young people. It is especially true for young people because they feel that their whole life is ahead of them and so why to bother when talking about death. Enrolling in a life insurance policy feels to them like planning or preparing for their death which they do not see happening any time soon. According to a study, 29% of millennials would rather save their money for a vacation than to enroll in a life insurance policy.
Even when millennials acknowledge the fact that death could happen at any time and to anybody, they still do not see the need to enroll in a life insurance policy. This is because the general idea is that you only need a life insurance policy when you have people who are dependent on you financially or otherwise and you will need to provide for them in the event of your death. Many millennials do not feel financially responsible to anyone and so do not see the need to enroll in a life insurance policy.
Although nobody likes to worry or think about death, the inevitable truth is that death is a constant part of life and it doesn’t have to happen when you are old and have lived to the fullness of your age. It can happen to anybody – old or young, healthy or sick at any time. Another thing to note is that life comes at you fast. So, the earlier you start preparing, the better for you and for your family. You are never too young to get a life insurance policy. You’ll soon see why.
Why Millennials Need Life Insurance
There are many important reasons why millennials need to enroll in a life insurance policy and the benefits attached to it. Below is a list of reasons why millennials should get health insurance and some benefits millennials have to gain:
Cost of Education
The millennial generation is said to be the most educated generation. It is a known fact that education is very expensive. A lot of people take a while to pay back their student loans. This is an important reason to enroll in a life insurance policy because in the event of your death, the death benefit can be used to pay off your student loans. Where you do not have a life insurance policy, you will leave the debt burden for your family to bear. You need to safeguard your family from this burden.
Mortgage Debt
A recent study showed that millennials are entering the housing market at the same as the older generation because they are exploring the option of a mortgage. When you are working as a millennial, it can be very easy for you to keep up with your mortgage payment. However, in the event of an untimely death, your family will be left with this burden. The death benefit from a life insurance policy can alleviate this burden.
Provision for Your Family
If you are in the category of millennials that have already started their family, you will need a life insurance policy to protect your family from the financial crisis if there is an untimely death. A large number of families depend on two incomes. If you die, you will be leaving a financial vacuum. You don’t want to leave your young spouse and possibly kids to bear the burden of financial funeral costs and other things at the same time that they are grieving. The death benefit from a life insurance policy gives them the room to grieve without having to worry too much about financial obligations. It will cushion the effect of your death on your family a little.
Lower Premium Rates
As you get older, your risks get higher and so your premiums get more expensive. If you enroll early in a life insurance policy, you have a good chance of benefitting a lower premium rate. This is because you are more likely to be in a better health condition when you are still young than when you get older.
Disposable Income
As millennials, you should have relatively lower expenses and so a higher disposable income. If you are unmarried, you do not have to cater to a family. If you are married, you have a young family and it is still quite inexpensive to take care of your children if any. Thus, it is wise for you to invest in this disposable income. Life insurance is a good investment option.
Tax Benefits
Life insurance provides good tax relief. The Income-tax law allows for premiums to be deducted from taxable income. This gives you tax relief while allowing you to benefit financially from your investment. It is a win-win situation for you.
Types of Life Insurance Policies Available
There are two major types of life insurance policies available namely: whole life insurance and term life insurance.
Whole life insurance
This type of insurance policy remains in force throughout your lifetime as long as premiums are paid and you keep to your terms of the insurance contract. The death benefit is paid whenever the policyholder dies.
Term life insurance
This type of insurance policy is for a specific amount of time set out in the contract. The death benefit is paid to the beneficiary under the policy when the policyholder dies before or at the time agreed upon. This type of policy is usually used to protect the beneficiaries in the event of the untimely death of the policyholder.
Conclusion
Life insurance is important for millennials. Enrolling in a life insurance policy is a good financial decision and it is made by anyone who is financially responsible irrespective of the age of the person.
If you’re exploring health insurance or looking for alternative healthcare plans, Life Insurance, or supplemental insurance plans feel free to reach out to our professional agents and see what program or programs might be right for you, that can help you through this time. Call Vivna, Inc. today to learn more here: 866.793.2301