The majority of millennials are facing big debts, and such financial challenges are causing some to put the task of purchasing life insurance on the back burner which isn’t generally the best choice.
There are valuable reasons why you and other millennials shouldn’t delay getting quotes on life insurance until you feel you’re on better economic footing. There’s no reason to put the decision off. The process of getting life insurance is easy to navigate with our step-by-step process.
You are educated with most having at least a bachelor’s degree.
You are racially and ethnically diverse.
You are slower to marry and establish a household than previous generations.
Additionally, most millennials are married, have children, earn six figures, and own their own homes, according to LIMRA.
LIMRA also reports that 55% of millennials don’t have any life insurance policies at all. That statistic could soon change considering 47% of millennials recognized the need for life insurance, especially as it pertains to single mothers.
Why haven’t millennials followed through and purchased life insurance? According to the 2023 Insurance Barometer Study, 38% of millennials thought life policies were too expensive.
Around half of the millennials stated they planned to purchase life insurance in the near future, and we’re outlining the reasons you shouldn’t delay the decision any longer.
5 Reasons You Should Act Now to Purchase Life Insurance
The pandemic taught you how fleeting and precious life can be, which may have caused you to think more intently about life insurance. Here’s some food for thought—who would become financially vulnerable if you unexpectedly passed away?
This is a concern for all generations. Here are five more reasons you should consider purchasing life insurance as soon as possible:
You will be leaving student debt loans to your loved ones. A Harris Poll showed that 68% of older millennials still have student debt over ten years later.
Millennials are generally young and healthy. These are characteristics that mean you will qualify for most policies and the rates will be attractive too.
Life insurance can help you increase your net worth. Permanent life insurance policies accumulate cash value in addition to the death benefit. The cash value can be used for a variety of purposes, and it is tax-free money.
Life insurance can protect your business. A GoDaddy survey that included 1,000 millennials showed that 30% of millennials were business owners or had a side hustle. Life insurance can help protect the business or help your partner keep it going after you pass away.
You could leave your family or other loved ones with a huge financial burden. Along with the loss of your income, this could put a massive financial strain on those you leave behind. A life insurance policy could make a significant difference for them.
A Step-by-Step Process for Purchasing Life Insurance
You may have access to a group life insurance policy through your employer but be aware that you may not be able to take it with you if you leave the company. A standalone policy puts you in the driver’s seat with how to manage your life insurance.
Follow these nine steps to apply for a life insurance policy:
Assess your needs. Review your financial obligations including your mortgage, student loans, auto loans, and credit card debt. You may also want to consider future expenses such as college funds for children.
Decide on a term or permanent life insurance policy. A term policy will be more affordable yet will end in a certain number of years. By contrast, a permanent life insurance policy is a little more expensive, but it provides benefits for your entire life.
Shop around for quotes. Contact a financial or insurance professional and get a variety of quotes. Alternatively, you can get quotes online, but it’s nice to have the advice and guidance of an insurance expert to answer all your questions.
Evaluate the insurer. Check their financial stability ratings and read customer reviews.
Complete the application and submit it. Be sure to fill it out honestly and accurately.
Follow through with any required medical exams. Often, a medical professional will come right out to your home or workplace at your convenience.
Choose your beneficiaries. They will receive a payout upon your death. Choose a contingent beneficiary in the event the beneficiary also passes.
Review the policy and sign it. Be sure to read the policy terms and conditions and ask your insurance professional questions about anything you don’t understand.
Pay your premiums on time to avoid cancellation. Most life insurance companies offer a variety of payment plans to suit your budget.
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Buying Life Insurance Is an Important Life Decision
Your life circumstances will change as you go through various seasons of life. For that reason, it’s wise to update your life insurance policies as your financial needs change.
Our licensed life insurance agents at the Leap Carpenter Kemps Insurance Agency are eager to help you make the most appropriate choices about life insurance for your unique situation. Contact us today at 800-221-0864 to learn more.
Melissa specializes in auto insurance, flood insurance, homeowners insurance, special event insurance, renters insurance, and watercraft insurance. She prides herself on knowing our markets inside and out.
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Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
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