5 Things Millennials Need to Know About Life Insurance

Being catapulted into the adult world is a shock to the system, regardless of how prepared you think you are. And these days, it’s more complicated than ever, with internet access and mobile devices being must-have utilities and navigating tax forms when they aren’t as “EZ” as they used to be.

Maybe you’re still living with your folks while you get established. Or maybe you’re looking forward to moving out of a rental and into a house or to tie the knot. Life insurance might be the last thing on your list of things to deal with or even think about. (You’re not alone.) But here are five things you might not know about life insurance—that you probably should.

1. Life insurance is a form of protection. If you Google “life insurance” you’ll get a slew of ads telling you how cheap life insurance can be, without nearly enough information about what you need it for. That’s probably because it’s not terribly pleasant to think about: this idea that we could die and someone we care about might suffer financially as a result. Life insurance provides a financial buffer for the people you care about in the event something happens to you. Think just because you’re single, nobody would be left in the lurch? Read the next point.

2. College debt may not go away. Did someone—like your parents—co-sign your student loans through the bank? If so, the bank won’t discharge that debt upon your death the way that the federal government would with federal student loans. That means your parents, or others who signed the paperwork, would be responsible for paying the full balance—sometimes immediately. Don’t saddle them with the bill!

3. If you don’t know anything about life insurance, it’s probably better if you don’t buy it off the internet. It’s what we’re used to: You find the thing you need or love on Amazon or Ebay or Etsy, click a few buttons, and POOF. It arrives at your door. But life insurance is a financial planning product, and while it can be as simple as a 20-year term policy for less than a cup of coffee each day (for real!), going through your options with an insurance professional can ensure that you get the right amount for the right amount of time and at a price that fits into your budget. And many people don’t know that an agent will sit down and help you out at no cost.

4. Social fundraising only goes so far. This relatively recent phenomenon has everyone thinking that they’ll just turn to GoFundMe if things go awry in their lives. But does any grieving person want to spend time administering a social fundraising site? The chances of going viral are markedly slim, and social fundraising sites will take their cut, as will the IRS. And there is absolutely no guarantee about how much—if any—money will be raised.

5. The best time is now. You’ll definitely never be younger than you are today, and for most of us, the younger we are the healthier we are. Those are two of the most important factors for getting affordable life insurance coverage. So don’t delay. And if you don’t have an agent, you can also use our Agent Locator. The key is taking that first step.

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  1. Re: #3. On the other hand, life insurance websites offer some powerful tools.

    – To help prepare you before you buy, you can learn about life insurance.
    – Use an online Needs Assessment calculator to help you determine how much coverage you should get.

    – Look at real-time quotes so that you can compare products and find the best quality term life insurance at the best price.

    Even if you still wish speak with an agent, you will be forearmed with enough information to make sure you don’t get SOLD more than you need (remember these agents are on commission).

  2. Thanks for these points, you make a great argument for life insurance. I have never thought about the kind of buffer that it is! I wouldn’t want to put another burden on my family after I am gone! I think I will have to do more research, but this idea is sounding better and better.

  3. Thanks for sharing this post. It gives details of the things a Millennial should know before they are looking for the best life coverage. Life cover is hard to find as there are various options available. You can hire a professional who can help you in choosing the suitable life coverage for you. Hope to see more useful blogs from you.

    To know more information @ http://finlifesa.co.za/

  4. Number 3 should be revised. I have been in the life insurance business for 34 years and we now do almost all our business through internet driven sales. We are licensed with over 20 different companies in 38 states and offer more products and services than most “local” agents. Most people are busy and would rather do business over the phone and do their own research. According to LIMRA, over 50% of life insurance sales are now made via internet contact versus an agent visit or going to an agent’s office and that number will continue to grow as more people become more comfortable doing business this way. Just because we don’t see our clients face to face doesn’t mean we are not “professional”. We are going into out 15th year selling life insurance online and business couldn’t be better! Bob Deighton, President, Deighton Financial Services LLC http://www.shoplifeinsurancequotes.com

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