Did you know that more than half of all millennials don’t carry life insurance? It’s for understandable reasons, including the fact that millennials are generally still in good health. Things like marriage, home buying, and starting a family can take precedence over buying life insurance for millennials, not to mention that complex plans and payout conditions can seem daunting.
Still, buying isn’t as scary as some imagine. There are several excellent reasons why even a younger millennial should consider purchasing a life insurance policy as soon as they can. Below, Medical Profiles Inc. discusses why insurance for young adults would be a good idea; the earlier, the better.
It’s Cheaper to Buy Life Insurance When You’re Young
From a risk vs. reward perspective, by far, the simplest reason to consider life insurance options for millennials is the minimal cost. It’s much cheaper to buy a policy now when you are young and healthy. Policies for younger people cost less per month.
A healthy 20 to 40-year-old millennial can secure a term life insurance policy for as low as the cost of a meal at a decent restaurant. The monthly premium costs for millennial life insurance will depend on a wide range of factors. However, all else being equal, you will pay much less over the length of your policy if you buy earlier rather than later.
Your Life Insurance Policy Can Make Retirement Better
Life insurance coverage for millennials gives them a head start on retirement planning. Usually, with a permanent life insurance policy, you get a cash value component that grows with interest over time. This investment component can serve as a source of tax-free income during retirement, which is great to fall back on in tough times.
You can also take out loans against the value of your life insurance policy if you pay back the loan before you die or make arrangements to cover this eventuality. You won’t have to pay taxes, and the loan shouldn’t reduce the policy’s death benefit.
Your Life Policy Can Provide Greater Financial Security
Millennials are generally young and healthy, but tragedy isn’t picky. If there’s an accident or an illness, life insurance for millennials covers loved ones with a source of income they can rely on. A robust life insurance policy is even more important if you have children or are the bread winner of your household.
A simple term life insurance policy can provide considerable death benefits. You’ll have peace of mind knowing your family or beneficiaries will be financially secure, even if you pass away unexpectedly.
You Can Get Flexible Coverage Because You’re Young
Life insurance for the younger generation has never been more flexible. Pick and choose specific coverage and riders to craft a unique policy that fits your needs. There’s no need to feel intimate by insurance—it’s a smorgas board of options designed to let you craft the coverage you and your family need down to the last detail.
- Do you want to try things out first? A convertible life insurance policy gives you the option to convert a term policy into a permanent policy after a certain period (no separate application or additional exam).
- Do you want something extra on top of your basic policy coverage? Riders give you a world of options, like a family income or a return of premium option.
Even life insurance plans for Generation Y still come with a high degree of flexibility in coverage and benefits, so ask for what you need.
Life Insurance Medical Exams
If you are considering life insurance for millennials, take the next step. Send Medical Profiles Inc. a message online or call at (832) 251-3926 to schedule your paramedical exam!
