Five Important Life Insurance Facts For Millennials
It’s often confusing for teenagers to make the transition to adulthood. You’ve probably had to learn about things like loans, tax returns, leases, utility bills, filing and checking accounts. Perhaps you have been renting an apartment for a few years. On the other hand, maybe you live in your parents’ home or you just purchased a house for the first time. Either way, you probably don’t spend much time thinking about life insurance. Nevertheless, these facts highlight the importance it holds for millenials:
1. It’s better for young people to purchase insurance from agents rather than directly buying it from an insurer. You don’t need to pay a fee to talk to an insurance agent on the phone or in person. Millenials frequently order products online, but the process of selecting a life insurance policy isn’t as simple. You’ll need to understand things like the difference between term and whole life policies. A knowledgeable agent will help you compare different options and select an economical plan with adequate coverage.
2. This kind of insurance can shield your family from significant financial burdens. Unfortunately, most advertisements focus on the affordability of life coverage rather than telling people why it’s necessary. Many millennials remain single, but this doesn’t mean that they can pass away without leaving behind substantial costs for others to pay. In addition to funeral and burial or cremation expenses, relatives may need to settle certain types of debt. They might also have to pay housing and utility bills until they can resell your home or remove belongings from it.
3. Although some young people believe that social fundraisers offer an easy source of emergency funds, it’s not always a great solution. Relatively few fundraising campaigns draw the attention needed to raise substantial amounts of cash. Furthermore, a spouse or parents don’t want to set up and manage a campaign while mourning. Another problem is that both the government and social fundraising services demand significant portions of the proceeds.
4. Life insurance may prove beneficial if you have one or more student loans. Numerous millennials owe many thousands of dollars to education lenders. Most people know that it’s difficult to eliminate these debts. However, students often fail to realize that the loans may not even disappear when they die. If a parent or other individual co-signed your application, the lender will probably expect this person to pay the remaining debt. It might even demand the balance in one payment rather than allowing the co-signer to take over the existing monthly payments.
5. Millennials are in a better position to buy life insurance than anyone else. Most people remain in better health before they reach middle age. Coverage normally costs the least for healthy young people because they’re much less likely to pass away soon. An insurer is also more likely to approve their applications. Consequently, it’s best to buy insurance now rather than waiting until you’re older and premiums have risen. To get started, find a reputable agent in your area.