Every millennial must opt for life insurance - reasons behind the truth

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By: tiarajoseph11
on 14th Apr,2016

Know the reasons why every millennials must have life insurance coverage.
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In today's world, 1 in every 4 millennials is underinsured. Whether it is a health insurance or disability insurance, the young generation between 18 to 29 age is likely to go without being insured. The millennials even ignore the low premium policies and less likely to grab other kinds of insurance policies like auto, renters, and homeowners coverage.

We all have to die one day; it’s an eternal truth. But being a young boy or girl, we often forget this truth very easily. We think everything will go flawlessly as we have planned, and avoid planning for the things happened after death.

But being a millennial, we must think like an adult and plan things up for tomorrow. We need to think of our family, our parents, our brothers, our sisters, and ever for our pets. So, it will be the best time to purchase a life insurance. If you still have doubts, consider the following reasons:

Read more: Pros and Cons of borrowing against a life insurance policy

1. People are depending on you

Know the basic fact, your life insurance is practically not beneficial for you. It’s for the people who are depending on you now directly. Your dependents are those people who are depending on your income. Think, who’ll look after your parents if you are the only earning member of your family? Apart from your parents and grandparents, your beneficiaries can be your spouse, your live-in boyfriend or girlfriend, with whom you share your house.

You’ll need life insurance policy if you have a disabled relative, to take care of for a long time. Most young individuals don’t have the funds to support long-term care costs for their elders. But, an insurance policy can provide you that monetary help even after your death.

If your partner is a stay-at-home person, then you need to arrange some funds for him/her after your death. She or he has to pay off all the static expenses after your death. So, the money she or he would be receiving may be a way to solve her/his problems.

Life insurance policy is nothing but having peace of mind while you're still alive. You’ll be assured that your loved ones are in good hands financially.

2. Low-cost premiums compared to elderly folks

The premium amount of life insurance for millennials are much lower than the amount of premium calculated for the aged people. The insurance premium is calculated on the basis of life risks and mortality. As per the insurance industry, the average life expectancy of a human is around 79 years. So, young millennials have comparatively lesser risk of death as compared to aged people. Thus, the insurance companies consider low amount as a premium for any young individual.

Premiums depend on the policyholder's age. If you are at your 20’s and apply for a life insurance policy, you’ll surely have low premium rates. But if you wait for 20 years more, your premium rates might get increased.

Additionally, being a millennial you can easily qualify the health criteria test to avail life insurance policy. Having a good health, the premium rates will also go down for you. So, don’t wait, go for a policy, pass the health test and qualify with flying colors.

Don’t miss out: What are the reasons for having a life Insurance even after you retire?

3. You’ll get an additional source of saving

If you always look for new saving ideas, you may go for a permanent life insurance policy. Life insurance has not only proven helpful for after death funding, but it's also an essential savings resource. You can even take out a loan against your life insurance policy.

A permanent life insurance policy will be an asset to your family. It’ll not only provide monetary security to your family but also look after your retirement. Young millennials know the importance of saving for their future. So, having a life insurance plan is somehow mandatory for them.

4. Chance of having company-aided insurance

Millennials may receive company-aided insurance policy along with a high salary job. Being a millennial, it’s a benefit, but I would also suggest you to consider an independent coverage.

If anytime you suffer from bad health and no longer able to perform your duties, your employer’s work policy may remove all the facilities entitled to you, including the life insurance coverage. If you apply for a new insurance policy that time, you won’t receive that much facilities like your previous company-aided policy. So, go for a new one side-by-side with your existing policy.

5. You’ll get funeral costs and other debts covered

If no one in your family depends on you, or you are coincidentally unmarried or divorced, even in that situation, you need to pay your outstanding debts and your funeral costs. Trust me, you don’t like to leave your parents in a financial hardship to pay off your funeral costs.

Read more: Do you know about life insurance settlement?

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