Many Millennials believe that they're different and that the tried and true retirement and estate planning principles don't apply to them. While Millennials are unique in many ways, this may not be one of them. As a class, Millennials are the most educated generation. They are also the most optimistic about the future and the most diverse generation in American history. Yet, these differences and optimism could be a setback if they prevent this group from purchasing the one thing that most of them truly need - a life insurance policy. Here are just four things about life insurance that every Millennial should know.
While Millennials are unique in their own way, the need for life insurance cuts across generations.
Life Insurance Isn't One-Size-Fits-All
Not all insurance comes from the same mold. As a Millennial, you'll want to consider what type of insurance policy best fits your needs. Life insurance proceeds from a death benefit can be used for such things as to pay off debts, replace income, and cover burial expenses. Other policies have a cash value benefit that can be tapped while the owner is still alive. In fact, among the younger generation, the latest LIMRA Insurance Barometer Study reveals that the reason many are purchasing a life insurance policy is to supplement retirement income. If this is the case, it will affect the type of policy that you choose to purchase.
Term Life Insurance Will be Cheaper if You Purchase Young
It's not uncommon for people of nearly any age to overestimate the cost of a life insurance policy. This is one of the main reasons for forgoing or delaying coverage and it can be a mistake. If purchased in your 20s, a term life insurance policy could run about the same amount that you would pay for a health club membership. As you get older, the cost of insurance will increase so buying early locks in the best rate for the length of your policy.
Getting an Insurance Policy Isn't Instantaneous
Again, it doesn't much matter how old you are because we have all grown accustomed to instant gratification in nearly all areas of our lives. In some cities, you can order a flat screen television on Amazon Prime and have it delivered to your front door in a matter of hours. It doesn't work this way with a life insurance policy. You may get instant quotes online now, but you'll have to follow those up with an application and possibly a medical exam before the policy is issued.
The new generation's preference for online shopping can be accommodated when it comes to buying a life insurance policy.
Millennials Prefer to Shop Online for a Life Insurance Policy
Speaking of instant quotes, it's no surprise that Millennials would rather shop for insurance online than visit an agent or broker's office. A recent study confirms this, and it's fortunate that this option is now available to consumers. Millennials and customers of any age can obtain instant quotes for various types of policies online from major carriers.
While Millennials are unique in many ways, the need for life insurance is universal. Fortunately, the method of obtaining a life insurance policy is evolving with the times and consumer demands. Contact us today to start your online quote.