Term Life Insurance For Millennials
Term life insurance is something that should be considered by uninsured millennials.
According to the U.S. Census Bureau, U.S. millennials will overtake baby boomers as the largest living adult generation in 2019, swelling to 73 million. Aged 22 to 38 millennials more than any other generation need to be considering life insurance now while they are still young and healthy where they can get the best deals and the best coverage to protect themselves and their families in the future.
That time right now. They’re the perfect age for getting good life insurance protection, as well as mortgage protection and even burial insurance that’s going to cover them. That’s going to cover their family.
Millennials are now facing so many more challenges than their baby boomer counterparts, who if they had not gotten life insurance when they were younger are now facing extreme costs should hey try to get life insurance now.
Consider this, unusually high levels of economic and social disruption over the past 20 years, stemming from technological advances, globalization and political unrest, are subjecting millennials to higher levels of financial insecurity than any prior generation. not to mention the economic challenges now being suffered because of he Covid19 pandemic and the resulting economic chaos.
Further, a sizable wealth gap currently exists between this generation and previous ones and is likely to continue to grow. The Federal Reserve Bank of St. Louis reported that in 2019, family wealth for those born in 1980 was 34 percent below what earlier generations held at the same age Research from the Resolution Foundation in the United Kingdom found that incomes of millennials who are employed are approximately 20 percent less than those of Generation X at the same age.
Not only that, but the two recessions since 2000, coupled with the soaring cost and need for higher education, have saddled millennials with student loans with high face value averaging approximately $33,000 per individual and with high interest rates ranging from 4.8 percent to 7.4. percent.
Millennials also have high and rising levels of credit card debt—approximately 25 percent of their total debt currently.
According to reports on the matter, currently, only 10 percent of millennials have enough life insurance coverage for all of their needs, which can include mortgages, retirement or a child’s college education. The rest view their financial challenges, such as high student loan debt, saving for a home and high mortgage payments, as reasons to believe they cannot not afford sufficient life insurance.
Also, Millennials are less likely than other age groups to know how much life insurance they need, let alone what type to buy, and are likely to assume the cost is far more than the actual cost.
Millennials Should Work With Insurance Agents For Protection
One positive note, is millennials, because they are computer savvy and are planning further into the future than the Generation x members following them, are more eager to protect what they have built and earned. However, they are also the age group least likely to have been approached to buy life insurance in the past 12 months, according to studies on the subject.
Despite the millennials’ purported preference for online research and online purchasing, 74 percent reportedly would still prefer to talk to a financial adviser, either on the phone or in person, when it comes time to buy life coverage.
Older millennials especially are more likely to look to professional financial advice. Even if they begin the process online, millennials are most likely to end up with a financial professional.
That is where we at Protect With Insurance come into play. We are here to help them get the type of life insurance policy that will best fit their budget and needs and protect them and their families in a manner befitting to them and worthy of the hard work they have put into achieving their goals in this life.
Getting life insurance now is extremely important if they want to be in a good policy with a strong, trusted, A-rated. Life insurance company that is going to reliably pay their loved ones when they pass or if something happens to them, now.
Millennials are at that age where they are still young enough to feel a sense of invincibility and permanence that we as we get older lose at some point when the prospect of our mortality finally sinks in.
When we get older, we don’t feel invincible anymore. And that’s when the importance of having life insurance really hits us.
The Time is Now For Millennials to Get Life insurance
Millennials are at that age bracket where it’s just ideal timing. So the first thing you want to do if you are a millennial and are looking for life insurance is you want it to work with a solid, well trusted and reliable insurance company.
If you are a millennial you want a life insurance program that will be ideal for your needs. If you get a “term” insurance policy you want a term life insurance policy that is going to fit; fit the needs that you and your family have.
You want that policy to be fairly priced. You want to save as much money as you can because that type of policy is something you’re going to be paying a premium for the next 30 years if you live that long.
Millennials Have Options
The total cost of a life insurance can really add up. Fortunately, millennials have several options right now based on their age grouping.
One option is you can purchase the least expensive life insurance option you can. You can purchase a run-of-the-mill term life insurance policy with no special bells and whistles beyond the fact that if you pass away for any reason, your family is going to get 300,000 or whatever the amount of the payout is.
There are also life insurance policies millennials can qualify for that can provide coverage going up to the millions of dollars depending on how much money you want to pay in premiums. Most people get $100,000 to about $500,000.
And again, you can go quite a bit higher. We at Protect With Insurance have written many life insurance policies that have gone as high as $5 million in coverage.
Return of Premium Term Policy
Millennials have some options that a lot of us who are over 40 do not have, and that is the ability to purchase a return of premium term policy.
It’s the same as a basic term life insurance policy, except there’s one important difference. At the end of the term policy, should you outlive the policy which runs typically for 30 years, at the end of that 30 year term the insurance company sends you all your money back, the full amount you paid, one hundred percent.
Return of premium policies are very special. They still offer all the same coverage. They’re full coverage insurance policies. Anything happens to you during those 30 years the policy is in force, they send your loved ones the full amount you were insured for. If you outlive the policy, you get your money back anyway.
That’s what we want. You outlived the policy. They send you one big check at the end. It’s an automated process. It’s a guaranteed process. As long as you keep that policy for the duration of the term, they send you that money.
With term life insurance, you’ve got a whole bunch of options there. Those are the two most common.
And again, it’s either you get the term life insurance price down as much as possible or go with a return of premium term. Our suggestion would be to look at both. We look at them and determine which one would be best for you and your family and your budget. Just know that you, as millennial, have options.
Work With A-Rated Insurance Companies Only
We at Protect With Insurance have contracts with a lot of insurance companies that are all A-rated. These insurance companies are highly respected providing those options for you. Well-priced returned premium terms are hard to come by.
You want to know how many term life insurance company options are there that we offer and have connections with. What are their ratings, performed by third party companies that specialize in rating life insurance companies? These ratings are extremely important.
It has to do with financial solvency and the trustworthiness of these insurance companies. It’s crucially important. You want to check on that and they should all be be rated an “A” or at the very least an A-minus in rating.
Even better, you would want an insurance company with an A+ rating to work with the vey best, as we do.
There are B-rated and C-rated companies out there. You want to avoid those if you can. There’s no reason why you have to go with those companies.
Mortgage Protection Insurance
We would like to add there is mortgage protection life insurance to consider. It’s become incredibly popular. It really reduces the rates of foreclosure, things like that. We certainly offer it. The short version, mortgage protection insurance is just another form of term life insurance.
With term life insurance, you can go above and below your mortgage amounts as well. A lot of millennials do have mortgages. so that’s something they can get as well, but it’s always life insurance if it’s done properly.
Take care.We hope this has been helpful.