As a millennial entering into a different life stage, you must start to make plans for a secure financial future. While younger people may not believe that life insurance is a priority, there are many reasons why it is essential to invest in this type of coverage early on. Keep reading to explore the importance and benefits of life insurance for millennials.
Life insurance provides the beneficiaries you designate with a lump-sum payment upon your death. This amount is also referred to as a death benefit. The beneficiary can use the money for a variety of purposes, like paying off outstanding debts, covering funeral costs and other final expenses, or even using the money as an income replacement to care for their family. The financial protection that life insurance provides gives you and your family peace of mind regarding their financial well-being in the event of your premature death.
Purchasing life insurance at a young age has several advantages:
Opting to get your life insurance now is a smart move. Depending on the policy you apply for, you may even qualify for coverage without a medical exam, which can speed along the process.
There are two main types of life insurance to consider:
These types of policies are popular with young individuals, as they offer greater flexibility at affordable rates. A term life insurance policy provides coverage for a specified term, usually 10, 20, or 30 years. If you pass away during the contracted term, the death benefit gets paid out to your beneficiary.
Term life insurance is a great option if you want additional financial security during your most financially vulnerable years. The lump sum of the death benefit gives your family the resources to cover significant debts like your mortgage and student loans.
These policies provide lifelong coverage, plus a cash value that grows over the life of your policy. You can borrow from your accumulated cash value to cover various expenses such as educational costs or a large purchase. Or, use the money as an emergency fund or to supplement your retirement.
Permanent life insurance is usually more expensive than term insurance, but it gives you long-term security and additional financial benefits. The policy that is right for you depends on your specific preferences, needs, and financial goals.
Life insurance is an excellent investment if you want to provide a secure financial future for your loved ones. Planning ahead today can provide many benefits, such as lower premiums and increased odds of approval. Whether you prefer the affordability of term life insurance or the long-term benefits of permanent coverage, you should take time to speak with professionals to discover a life insurance plan suited to your needs.
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.