3 Personal Finance Essentials Young People Need to Know
It's not your imagination. According to Gallup research, Millennials aren't just tying the knot later and less frequently, they are also living with roommates later in life. Without the major milestones of home buying and marriage, it's understandable that many Millennials may be putting off purchasing term life insurance too. But they may want to reconsider that decision. The same Gallup research shows that, on average, Millennials are still having kids and settling down around the same time other generations have, but often sans the legal contract.
For those reasons and more, buying life insurance can still be incredibly valuable to 20 and 30-somethings. If you're still wondering if you really need life insurance, here are a few thoughts on why Millennials should consider biting the bullet and get life insurance.
It's true, for many types of term life insurance, the process isn't instantaneous. You can't text us your life insurance order or get your application approved same day. There's a medical exam required for many policies, and there's an underwriting process too. The great news is that for the medical exam, we'll come to you at the time and place you choose, and once you reach underwriting, the only thing you have to do is continue your life and wait for us to get back to you. So while the process may take a few weeks, the time it takes you away from your life is usually only around an hour.
Just because you haven't made it legal doesn't mean that you don't have a very real responsibility to a partner. Getting hitched is a good signal that it's time to buy life insurance, but if you are in a partnership in which you share the rent, the car loans, the grocery bills or even the mortgage each month, a loss could be financially debilitating.
Since insurance rates generally depend on the likelihood of the insured event occurring, life insurance for young adults who are healthy will usually be considered a lower risk, and rewarded with a similarly lower rate. Given that we get a little older every day, consider making the purchase of your policy a priority so that you're prepared for whatever tomorrow and the next day bring.
Many people are resistant to putting a lot of money into something that doesn't provide an immediate benefit. Life insurance is affordable, though. According to our rates as of 2016, a 35 year old man in good health could pay just $14 per month to have a $250,000 policy for 20 years - that's less than 50 cents a day.
Consider for a second how many times a day you spend 50 cents on something (or even lose 50 cents for that matter). It could be a splurge on chocolate in the checkout line or an extra pump of syrup for your coffee. No need to drop your triple pump latte, but if you can find a couple quarters for a parking meter or a pack of gum, maybe you'd be able do the same for a policy that could pay dividends in our futures?
The process doesn't need to feel daunting or intimidating. The process is simple. The cost is affordable, and whether you're married or not, life insurance for young adults just makes sense when you have something or someone to protect. If you're still unsure if you really need life insurance for you, try our free life insurance calculator tool or request a free quote online today.