Many people wait until later in their lives to purchase life insurance. They may just be waiting until they are older and more likely to pass away, they could be waiting until they are financially prepared, or they could fall into an additional category: they could just not be planning on purchasing it at all. According to a 2015 study by LIMRA, a life insurance research organization, less than 20 percent of millennials (as well as some members of Generation X) responded that they were considering purchasing life insurance at all in the near future. Regardless of your generation, there are always reasons to have Life Insurance, and in this blog, we will explore how the policy could be beneficial for the millennial generation.
Why Millennials May Not Value Life Insurance
Several research organizations have conducted surveys to answer the question of whether millennials are purchasing life insurance, or why they chose not to purchase a policy. Here are some of the most common responses:
- It isn’t a priority. Ultimately, the purpose of life insurance is to provide a beneficiary with a payout upon the death of the insured, and because the millennial population is younger than Generation X and the Baby Boomers, they are less likely to die any time soon. A recent survey revealed that millennials would rather spend their limited funds on new technology (such as the most recent smartphone) or an experience (such as an adventurous vacation).
- It’s too expensive. According to the 2017 Insurance Barometer Study conducted by LIMRA and Life Happens, 73 percent of millennials surveyed responded that life insurance was too expensive, with 80 percent reporting that they have other financial needs with more importance (such as living expenses, electronic expenses, recreational expenses, educational expenses, and saving for the future).
- It’s confusing. As millennials are comparatively new to post-school life and complete financial independence, the majority of them have never had to purchase life insurance before, and they do not have an in-depth understanding of the various products and plans, their costs, and what they offer. Though a large percentage of millennials consider life insurance too expensive, the survey found that 80 percent overestimate the cost, with 40 percent estimating premium cost to be five times more than the actual premium. In fact, the younger and healthier you are, it is cheaper and easier to secure coverage. 8 in 10 millennials responded that they want a policy that is easy to understand, and 7 in 10 expressed interest in talking to someone about their insurance needs and questions.
How Life Insurance Can Benefit the Millennial Generation
52 percent of millennial respondents stated that they did not like thinking about death as a rationale for not purchasing life insurance. However, life insurance is not just about death; there are a number of additional reasons and rationales for purchasing a policy. As mentioned above, two of the most important cost drivers in a life insurance policy are age and overall health. Millennials today are the youngest and in the best health that they will be in. In addition, the buying process is also far more streamlined than it has been in the past.
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. We are a Fraternal Society, which means the sales from these 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 (800) 344-6273.