Millennials Insuring Stuff, Not Themselves (And Why That’s A Mistake)

The majority of millennials say getting life insurance simply isn’t a priority, but they are willing to protect what they own…or rent. In fact, the majority (60%) of the late 20, early 30-somethings say Internet, cable, and cell phone bills are more important than paying for life insurance coverage. Unfortunately, being young and healthy doesn’t exclude anyone from the unexpected and it’s better to be prepared, even if you’re single without children.

Insurance Coverage

Millennials are spending money on insurance; it’s just not for themselves. Nearly 64% of millennials have auto insurance, but only 36% of adults under 30 have life insurance compared with 60% of those 30 to 49. One theory is that because the generation has few assets or children to protect, they feel there’s no need for a life insurance policy. Financial experts say that just isn’t the case. Even young, single adults who have no children to protect need life insurance coverage.

It’s important for Generation Y to realize student loans could fall back on a cosigner, or anyone who depends on the income from a millennial – a parent or grandparent – could suffer if the unexpected occurs and there’s no life insurance policy.

What Millennials Buy Instead

Studies show that millennials would rather have the latest gadget or a weekend get-a-way than put money aside for life insurance. Bankrate reports 30% of millennials say saving for a vacation is more important than paying for life insurance and fewer than 20% reported they’re likely to buy life insurance.

Even when proposed as a free gift, millennials had a hard time choosing life insurance over an Apple Watch. Bankrate says when asked if they would prefer free life insurance for a year, a $400 all-expense-paid weekend getaway or a free Apple Watch, 37% of millennials chose the free life insurance option, 30% picked the getaway weekend and 16% the Apple Watch.

Danger Of No Life Insurance

Millennials are misinformed in the belief that life insurance is for the policy holder. Benefits from life insurance are for those who remain in the event of the policy holder passing. For those who depend on the income of the policy holder, those who co-signed student loans, or those who would be responsible for final expenses. Inexpensive life insurance coverage is easy for a healthy 30-something to obtain and if ever needed, the policy payout will support those left to handle any outstanding debt or funeral costs.