Although they need it, millennials are avoiding life insurance

Posted on Posted in Life Insurance

Recent research from LIMRA has shown that millennials aged between 18 and 34 years old are unlikely to purchase a life insurance policy.

Faced with ever increasing expenses, and the burden of debt (college and mortgage loans), this generation is under financial pressure. For them, life insurance just seems to be another expense to avoid. The reality is though, should their (usually) young dependents find themselves without a bread-winner, their circumstances would be dire. Leaving the burden of debt for a young family can set them back for years and years.

Millennials should at least consider a life policy that covers their debt.

What millennials do have on their side, and is a most important determinant in the monthly premium of a life insurance policy, is that they are young. The younger and healthier you are, the less a life policy will cost. At this stage of life, the most appropriate life policy would be term life. Set for a specific term limit, for example 20 years, these policies by far offer the most cost effective way for millennials to get their loved one’s and dependents covered.

According to LIMRA, a 20 year term life policy with $250,000 of coverage, would cost a healthy 30 year old about $160 a year. That’s about $13 per month – 0.44 cents a day! A lot less than a designer cup-of-coffee…

Makes sense.