Millennials may put off some life events that their parents or grandparents did at younger ages. Examples may include getting married, buying a first home, or having children. Some may even decide to start their own businesses instead of beginning their career with a large company.
These kinds of events encourage people to buy life insurance. That's true even today. Even if young adults delay some events, they might consider buying coverage early.
Why Millennials Should Consider Life Insurance
Young adults might consider life insurance for these reasons.
Most life insurance companies base rates on age. They might also consider health. Younger adults enjoy a better chance to get preferred rates. They can often lock these low rates in for decades or even the rest of their lives. Millennials can buy life insurance when they are young and have it when they need it in the future.
Whole and universal life coverage can last for a lifetime. The cash value of these kinds of policies also grows over time. It grows slowly in the beginning and faster after the policy has matured for several years. Young adults can grow the cash value of their accounts over many years. Gains from these policies also defer taxes as they grow. A permanent policy can offer a way to build an asset and offer protection.
Protect Family Members
Most people assume obligations to others even before they start their own families. Some young adults have already married. Most people have parents, siblings, and others that may have to assume certain debts or make funeral arrangements if their loved one should die unexpectedly. Adult children and grandchildren often help care for aging relatives.
An unmarried person might set a sibling or parent as the beneficiary of the policy. The death benefit can help the family member pay for a funeral and even pay off debts. It can also help the insured person's family set aside money to help with other obligations as they arise. Later, the policy owner can always change the beneficiary to a spouse or children.
Why Young Adults Should Consider Buying Life Insurance Policies
Healthy and young adults probably will live a long time. They probably do not believe that they need life insurance if they have not bought a house, had children, or gotten married. They should consider life insurance as a way to plan for future events and protect their families. That's where its benefits can come in handy.
Also Read: How to Reduce Your Life Insurance Premium