Many younger people do not consider life insurance at the top of their list of priorities, but could life insurance options be worth the investment for a healthy millennial? Many millennials are coming into the workforce with large amounts of student debt and are delaying traditional adult activity like getting married, having children, or owning a house so life insurance could be the last thing on their mind. While life insurance may not be a huge benefit for all millennials, other young workers could have good reason for purchasing life insurance. In fact, per the LIMRA and Life Happens 2016 Insurance Barometer report, half of millennials have life insurance – whether their own policy, one through an employer, or both. So, what are some of the reasons a young, healthy individual could have for engaging in this insurance policy?
Cheaper rates: Life insurance policies will get more expensive as an individual gets older. Someone in their mid-20s can get a six-figure term policy for just a few hundred dollars a year, whereas that same policy could cost a senior citizen thousands more. Different policies will cost different amounts and a quick overview of your options can help you pick the right plan and secure the best rates.
Protects family from debt: As mentioned earlier, most of today’s college graduates are dealing with huge amounts of debt. If something happens to the employee who owes all that debt and their parents were included as financial cosigners, then the parents would be responsible for the outstanding balances.
Income support: If anyone depends on you financially, you really want to have life insurance. In the case of an unexpected death, your dependents will have a source of money to live off of.
Employees young and old should take the time to review their options for life insurance. Companies can benefit by offering their employees access to these voluntary benefits and can use these policies as a way to attract top talent and keep them invested in their company.