Millennials have life insurance all wrong. You should always be covered, even when you’re in your prime.
You’re young, and you’re exploring the world and what it has to offer. Insurance is for old people, right? It’s for your parents’ generation. Something you don’t have to really worry about, because you may very well not have a mortgage, and you might even not have a car.
And by you, we mean you’re someone born between 1982 and 2000; essentially you’re an adult under the age of 40.
A study commissioned by the US-based Life Insurance Trade Association found that 29% of millennials thought getting life insurance (or increasing their existing insurance coverage) was less important to them than saving for a vacation was.
An additional 60% of those surveyed said it was more important to pay for their ongoing expenses such as Internet access, mobile phones and streaming entertainment services than it was to purchase some – or more – life insurance.
Young adults may, and often do have the belief that they’re pretty much invincible. But you’re not – none of us are. Life insurance is a very important consideration for you to make, especially if you’re married or have a family. It’s an investment which provides income replacement that can be valuable for young people who are just starting out, or in the situation where one spouse makes more than the other.
We don’t like to think about death, or total and permanent disability, but these are things which impact us, often when we don’t expect it. If you’re married, have children or have significant financial commitments (such as a mortgage) having life and/or income protection insurance is a must-have. The last thing you need atop whatever led to your change of financial circumstances is the stress from further disrupting your life or having to sell your house because you couldn’t make the monthly payments.