Despite being blamed for various societal changes, millennials have shown a significant interest in life insurance coverage. While the media has claimed that millennials “killed” traditional concepts like the 9 to 5 work week, marriage, and homeownership, this generation is proving to be responsible when it comes to finances. Studies suggest that they are better with money than previous generations, which could explain why they are eager to protect our families from potential worst-case scenarios through life insurance. It’s a sensible decision that aligns with values and desire for security.
Contrary to the media’s portrayal of us as carefree, millennials are actually quite serious about our finances. We came of age during the financial crisis and witnessed our parents’ struggles, which had a profound impact on our saving habits. In fact, 41% of us set aside money every month, and the majority of us believe that saving for retirement is crucial. We understand the importance of financial security and are taking steps to ensure our future stability.
Insurance is also a significant concern for us. According to LIMRA’s annual Insurance Barometer Study, 54% of millennials have researched life insurance online. Two out of five millennials wish their partner would purchase more coverage, which is a much higher percentage than that of Gen X or Boomers. These figures suggest that we are more aware of the importance of life insurance and understand the need for sufficient coverage to safeguard ourselves and our loved ones.
The fact that we’re not purchasing life insurance is not due to a lack of interest. We are actively thinking about it, conducting research, and seeking referrals from our social media connections. The main issue is competing financial priorities. For many millennials, expenses such as rent, utilities, or credit card debt take precedence over buying life insurance.
Studies indicate that in addition to rent, utilities, and credit card debt, millennials prioritize paying off student loans, saving for retirement, investing in healthcare, and taking vacations. While we understand the importance of life insurance, our current financial circumstances often make it difficult to prioritize it over other pressing expenses.
Another hindrance for millennials to purchase life insurance is the perception of high costs. According to a survey, 44% of millennials believe that the cost of life insurance is over five times more expensive than it actually is. They estimate that a healthy 30-year-old would pay $1,000 or more per year for a $250,000 term life policy.
In reality, the cost is much lower. This misconception could be creating unnecessary barriers for millennials, especially considering that younger and healthier applicants tend to receive the lowest monthly premiums.
Investing in a 30-year term life insurance policy may cost you less than an Uber ride or a food delivery order. Monthly premiums are unlikely to significantly impact your budget, and the coverage can offer immense peace of mind for both you and your family.
While some millennials may be delaying traditional milestones such as marriage, homeownership, or having children, this does not make us any less susceptible to unforeseen disasters. Tragic events can occur at any moment, and by neglecting life insurance, we could be leaving our loved ones without a crucial safety net.
