Each year, Life Happens and LIMRA release their annual Insurance Barometer Study detailing what modern consumers are most concerned with—both in terms of their coverage and their finances—when it comes to their insurance. The 2018 Insurance Barometer Study, released earlier this month, further examined two “hot topics”: getting life insurance without a medical examination, and how customers are using social media and online information to assess insurance professionals.
Several of this report’s findings dealt with younger customers and their current attitudes towards life insurance. Here are some of the report’s key findings:
- 2 in 5 millennials wish that their spouse or partner would purchase more life insurance.
- 44 percent of millennials overestimate the cost of life insurance by five times its actual cost.
- Millennials are most likely to be uncertain about product types, coverage amounts, and qualifying for coverage; they are in need of information and education.
- Over half of millennials said that they would research life insurance online but would rather purchase directly from an insurance professional.
From the data, we see that many younger life insurance customers, new to the world of insurance, have questions about getting life insurance. Here’s our guide to purchasing life insurance for millennials.
The Types of Insurance
There are two main types of life insurance:
- Term life insurance – Term life insurance is temporary life insurance that offers coverage for a specific term (typically a predetermined number of years). Once the term ends, coverage ends as well. Before the term runs out, it can usually be converted to a more permanent whole life policy.
- Whole life insurance – Whole life insurance (one of the most common forms of permanent life insurance) provides coverage until the insured’s death as long as premiums are paid and accumulates cash value.
For many millennials, term life insurance is a great option. Because it’s temporary, the premiums are often lower. You can get a term life insurance policy to protect yourself while you save up money and prepare to start a family. Once you’ve started a family and have dependents, you can apply for more permanent insurance. Keep in mind the longer you wait, your age and health status may make your premiums higher. Make sure you talk to your insurance agent about your needs, so you can learn what coverage is best for you.
The death benefit is not the only benefit to life insurance. If you’re fresh out of school and dealing with student loans, life insurance can protect co-signers of private loans and ensure that they won’t pass on to your loved ones in case of your death. Another option is to purchase a term life insurance policy for the timeline of your student loan payments, as it will help you to balance your budget while making these payments. If you’re looking to buy a home soon, permanent life insurance can provide cash for a loan to help pay for home expenses, or can help you to pay for a future home purchase. Some cash-value policies can be used as an investment for retirement years.
It’s common to feel as though you don’t need life insurance in your younger years, but you’ll never be healthier than you are right now, and young and healthy is undoubtedly the best time to buy life insurance. Which brings us to…
For many customers, the chief worry is that they will not be able to get the coverage that they need, either because they think it is too expensive or they will not qualify. Here’s the good news: as a young and healthy individual, you should have no problem qualifying for life insurance.
If the qualification process concerns you, don’t be worried. The application process is not time consuming and the questions are just to ascertain your lifestyle, health, and your insurance needs.
About National Catholic Society of Foresters
At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. Sales from our financial services products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. Our portfolio is extensive, ranging from various life insurance policies to IRA’s to support your financial needs no matter what stage of life you’re in. For more information, contact our friendly experts today at (855) 804-7424.