Millennials and Life InsuranceWhy it matters to invest early

A Brave New Market

Millennials, those born between 1980-2000, are arguably the most sought after demographic today•By 2018, they’ll spend more than the “baby boomer” generation- more than $3.4 trillion •Among the older half of millennials, between ages 25-34, there are now 10.8 million households with childrenIf you want your business to thrive – and with the “boomers” entering retirement- it's time to learn and understand the Millennials.

They’ve been putting off large life events, things like:•Buying a house•Investing in life insurance. Many of them have grown up in a harsh economic climate, leading to an impulse to spend as conservatively as possible.

Only about one in three Millennials- also known as “Generation Y” are the head of their own household, a lower percentage since the 2009 depression that plagued American households.

“Generation Y”

No money, more problems

This generation also faces a higher rate of unemployment and insufficient income, so it’s understandable that some expenses have to be neglected, but one shocking trend is that life insurance tends to be one of the first things to be put off by these financially-conservative citizens.

Why aren’t they buying life insurance?

Al Schor, a field director working with Northwestern Mutual, thinks that this trend is due not only to conservative spending, but difficulty dealing with the concept of mortality and illness.With few to no dependents, it just doesn’t make sense to many Millennials to start thinking about life insurance.Why would they need that protection now, when they’re in their physical prime?

Before making this decision, today’s young adults must first examine the entirety of life insurance – not just in terms of immediate importance, but in a way that takes their entire life into account:•Taking out a life insurance policy early in life allows you to lock in premiums and death benefits right away,•A cheap life insurance plan can turn into a lucrative investment down the line.Many insurance companies offer whole life insurance, and with a policy like that, you can begin to build guaranteed cash value almost immediately.

Looking at the Big Picture

Many permanent life insurance plans can also build cash value and become a stable part of your financial plan – a predictable reassurance that, should the worst happen, the money will be there.

Even if, one day, you don’t need your death benefits, the cash value built over time can be used for other things, such as supplementing retirement.

What’s in it for me?

Many Millennials, though turning down life insurance, do want financial stability, and a well thought-out approach to life insurance is an impactful part of that plan.

Millennials must also grasp the concept of insurability. Not only are insurance companies more likely to insure a young, healthy person, but they’re also more willing to charge a low fee.

Youth in your favor

The price of life insurance is based on many factors including:

•Type of policy•Death benefit amount•Age•Health

For the young adult, the time is ripe to lock in an inexpensive and beneficial policy.

What is the cost of insurance based on?

Schor leaves his clients with these words of wisdom:“Think of how much [their] lives have changed in the last five years. They’ve graduated college or started a career. They can’t presume to know exactly what’s going to, or not going to, happen in the next five years. They just need to establish short- and long-term goals and come up with the best plan on how to achieve them.”

For more information on Life Insurance, please visit: http://www.costulessdirect.com/insurance-solutions-california/life-insurance/

Final Thoughts