Why Millennials Hesitate: Dispelling Life Insurance Myths
September 13, 2024
Due to prevalent myths and misconceptions, life insurance often gets negative perceptions, especially among millennials. People may dismiss life insurance as expensive or unnecessary. But these misconceptions are costing young adults more than they realize. By debunking the folklore surrounding life insurance, we can unveil its true potential as a financial safeguard. It's time to strip away the misconceptions and see life insurance for what it is — a powerful ally in securing your future and protecting those you love.
Myth 1: Life Insurance Is Too Expensive
Due to limited information, millennials frequently overestimate life insurance costs. Many assume premiums are prohibitively expensive without knowing that affordable options are available.
Basic term life insurance can be quite affordable. For example, a healthy 30-year-old might pay around $25 monthly for a $500,000 policy. Similarly, a 40-year-old could see premiums of approximately $40 per month for the same coverage.
Myth 2: I'm Too Young for Life Insurance
Early life insurance payment comes with major advantages, such as reduced premiums. Securing rates while young and in good health allows you to obtain coverage at a lower cost and avoids the higher expenses of aging or health issues.
Early coverage also safeguards your future insurability, ensuring you stay eligible for coverage even if your health deteriorates. This forward-thinking strategy enhances long-term financial planning and offers reassurance, knowing your loved ones are okay.
Myth 3: I Don't Have Dependents, So I Don't Need It
For single millennials, life insurance offers valuable benefits like covering personal debts, student loans, and end-of-life expenses. It ensures that financial obligations don't burden loved ones after you're gone.
Regarding estate planning, life insurance can still be crucial by providing funds to cover taxes and administrative costs, leaving a financial legacy, or supporting charitable causes.
Myth 4: The Process Is Too Complicated
With technological advancements, most processes that were otherwise manual are simple and effective. You can now research different insurance providers and register. The steps of acquiring life insurance may include:
- Assess your needs and determine the amount of coverage you need.
- Research and compare different types of policies and providers.
- Use online tools to obtain and compare quotes.
- Apply online through digital platforms, which often offer quick and easy forms.
- Undergo medical exams, which you can schedule easily.
- Review the policy terms carefully before finalizing them, and sign if they are satisfactory.
Engaging Millennials With Facts
To better educate millennials about life insurance, the industry should leverage social media campaigns to engage and inform through relatable content. Our Instagram platform offers educational information on life insurance as well as the success stories of our members. Creating straightforward educational content, such as infographics and blog posts, can simplify complex topics and address common misconceptions.
No More Misconceptions
Dispelling myths about life insurance is crucial for ensuring millennials are well-informed about their options. They can make better decisions regarding coverage and financial protection by clearing up misconceptions. Millennials should actively research their choices and consult with 1891 financial advisors to find a plan that best suits their needs.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.