Common Reasons Why Millennials Don’t Get Life Insurance
Millennials aren’t entirely known for being a “roll the dice” kind of generation. They’re more determined to settle their debts, invest more in their retirement plan, and are generally smarter about using their credit cards to shop than other generations.
Prudence of this kind doesn’t carry over to a crucial personal financial responsibility, which is the need to have life insurance as a millennial head of household. Unfortunately, 75% of millennial parents in the US don’t have life insurance. There are various reasons, but generally, American adult households aren’t too keen on the idea of having life insurance, despite the fact that US adults in their mid-30s can meet an early demise.
But perhaps millennials who deliberately abstain from purchasing life insurance know the odds are highly in their favor. A mere 1.5% of men who are 30 and only 0.9% of 30-year-old women push daisies before they hit 40.
Despite all this, some young people still do perish before their time. Whether they’re aware of this or not, they have reasons to avoid paying for life insurance, relegating this financial tool to a paltry option not knowing this can save their family from financial ruin in case of a tragedy. Here are some of the things they prioritize over this:
- Bills or debts to pay
Millennial professionals have financial needs that they need to address, and many still don’t earn enough to add another obligation to pay for regularly. Rent, loans, utility bills, and daily expenses, among others, can take a toll on your monthly budget.
- A new home
Since millennials aren’t into games of chance, they shun purchasing life insurance thinking it’s a gamble. Many are more focused on the more important things at their young age, and one of them is owning a house. And when they find themselves looking in an expensive real estate market, everything else takes a back seat.
- The need to care for their family in the present
It’s really not an issue of millennials not wanting to get life insurance; they do. What’s more of an issue is prioritization. The idea of taking care of their families in case the inevitable happens early is in competition with that car, big screen TV, and other creature comforts. Not to mention the prudence of saving for their kids’ education.
Relevant Statistics and Figures
These reasons have been huge factors that have led to a mere 10% of millennials having enough life insurance in place to cover their own needs should they perish, which puts their family at risk. A Bestow study reported that a whopping 75% of millennial parents don’t even have life insurance.
This can be a cause for concern for millennial families that could possibly find themselves in financial difficulty in case any of the breadwinners in the family meet their early demise. With the reasons mentioned earlier, it can take a while before they prioritize life insurance over their immediate needs.
Misconceptions also play a massive part in the lack of life insurance for millennials. They believe they do not see much value in the protection. And with younger adults most likely to qualify for life insurance and have the lowest premiums, they think the opposite is true.
With millennials wholly immersed in the information age, they are more accustomed to finding answers for their questions online. The industry can take advantage of this and leverage online tools available to them so millennials can have a better appreciation of how valuable it is to get covered.
Protect Your Family with Life Insurance
Indeed, having life insurance is vital in preparing you and your family against one of life’s biggest uncertainties. Keep in mind that death is inevitable, and we only have one final destination. What counts is how you’ve lived your life and what measures you’ve taken in protecting your loved ones from financial ruin when you pass.
- Be informed
One of the biggest reasons why millennials don’t get life insurance is the lack of information. Take the initiative to know all about it so you can be aware of the benefits and grab the opportunity to get one as early as possible to get the best rates.
- Reset your priorities
Making adjustments in your expenses to make a little room for life insurance is a decision you won’t regret. Making small sacrifices here and there won’t hurt if the trade-off benefits your family in the end.
- Tap into different channels
With all the available information on the web, you can do your homework and take in all the information you can gather before making a decision.
It would be wise to share this infographic so you can inform other the importance of getting life insurance coverage. You can help prepare them for the future while protecting their families from financial setbacks.
Take the first step by talking to a Bancassurance Sales Executive at any of the 900 BPI branches nationwide.