This fact might scare most millennials, but we’re all going to die someday. It’s one of the only certainties in life – along with taxes. However, a recent study by Budget Insurance found that 82% of millennials don’t know what life insurance is for – even as they are aging, starting families, and dealing with more complex financial situations.
While most millennials would have never needed to consider life insurance before, it’s now time to start taking life insurance and other estate planning more seriously.
But the great thing is, more companies are starting to take millennials seriously financially – and it’s getting easier than ever to get life insurance.
Let’s break it down on why millennials need life insurance and how companies are starting to understand this trend.
Why Millennials Need Life Insurance
Life insurance exists for a simple reason – to protect your family financially in case of your demise. The fact is, millennials are starting families, and those families depend on you financially.
According to Pew Research, 60% of families rely on dual incomes, while 31% of families rely on a single income. Combined, that means 91% of families in the United States need one or both spouses income to survive. And what happens if one (or both) die? That’s where life insurance comes into play.
Millennial families have expenses – housing costs, student loan expenses, and more. And while Federal loans are forgiven upon death, many private student loans are not.
Plus, there’s always going to be grieving, lifestyle changes, and more – and having a monetary cushion is important.
It’s More Cost Effective Than Ever
The great thing about millennials is that they’re still relatively young. That means that getting life insurance is more cost effective than ever. Plus, for the vast majority of millennials, a simple term life insurance policy is all that’s needed.
These policies are very inexpensive, and can be a financial relief if they are ever actually needed. There have been horror stories about student loan cosigners stuck with the debt of a borrower who passes away. Not only are they left with the emotional burden, but they also have to deal with the financial fallout as well.
In fact, it’s possible to get a $1,000,000 term life insurance policy for about $40 per month, depending on your age and health. That’s a lot of insurance for a relatively low price.
New Companies Focusing On This Market
With the rise of millennials needing life insurance, multiple companies have emerged making purchasing life insurance incredible easy.
These companies offer online or app-based solutions, and focus on speed and ease of use. These companies rely on technology, and keep the interaction with humans to a level most millennials appreciate.
The leaders in this space appears to be Haven Life and Policy Genius (who also offers a lot more than just life insurance0, but other companies like Ethos and Ladder are quickly following in their shoes.
There are other similar companies like Tomorrow which offer estate planning and life insurance options all via an app.
We expect to see more and more companies emerging in this space to cater to millennials who need to think about life insurance but what to do it in an easy way.