5 Facts Millennials Should Know About Life Insurance
As an adult in your early 30s, life insurance is likely the last thing on your mind, and we get that. Being plunged into the workforce, building a career, possibly a family, and just beginning your adult life leaves little room to consider the uncertainty of tomorrow. The truth is, preparing a stable financial future, especially for your family, should be a priority. If the unexpected should occur, you want to know that the legacy you leave behind is one of comfort and provision – which is exactly why life insurance is vital, even to millennials.
There are some common misconceptions about life insurance, so here are five facts you may not have known:
Life insurance provides protection.A quick search of “life insurance” on Google will retrieve a plethora of ads about the cheapest rates, guaranteed coverage, and promises of no medical exams. It’s important to understand what life insurance coverage is: a form of financial protection for your family in the event something should happen to you. It’s not an easy or pleasant thing to think about, but when you consider that your legacy will shield your family from debt, potentially losing their home, or not being provided for without your income, it becomes clear that coverage is peace of mind.
Even if you’re single, you need life insurance. Much of the benefit of life insurance is for family members, but even if you’re single, you need coverage. Consider your student loans. Did a parent or guardian co-sign for the cash you needed to attend college? That debt won’t dissipate the way federal student loans do if something should happen to you. Your parents, or others who signed the paperwork, would be responsible for paying the full balance. Life insurance offers them the funds needed to pay off the loans.
An online deal isn’t necessarily a deal.Retailers like Amazon and eBay make it easy to click, pay, and receive. Life insurance coverage has many options, and you’re best bet is to discuss those choices with a life insurance agent. Speak to a professional about your life status for help determining which coverage plan is best for you. This is also a great time to note that you’ll want to revisit your coverage plan with any major life change – new job, a move, marriage, or a child.
Don’t rely on savings or social media. In a world where people are setting up donation web pages for alcohol and gas money, it’s easy to think money won’t be difficult to come by if your family should need it. Not so. Even relying on your savings account to support your family financially if you weren’t around isn’t enough. You should have a life insurance policy that offers your salary for five years. So, if you make $50K yearly, your coverage plan should be for a minimal amount of $250K.
Don’t wait. It’s easier and less expensive to obtain life insurance coverage in your 30s. Give up the idea that life insurance is only needed when you retire or “reach a certain age.” Act now – you’ll never be any younger than you are today.
