Why Aren’t Millennials Buying Life Insurance?
Life insurance can be confusing – particularly life insurance for millennials.
You’re in what is arguably the prime of your life, chasing your dreams – the last thing you want to think about is what will happen to your loved ones when you pass away.
Perhaps that is the reason that millennials aren’t buying life insurance, despite it costing less on a monthly basis than a Netflix subscription!
So, why should you get life insurance? And do you need life insurance when you’re young? Let’s take a look…
Why should you get life insurance as a millennial?
Life insurance for young people is a fantastic way to ensure financial security for your loved ones on a long-term basis. As your risk of death is likely to be lower now than it will be as you get older, you will also be able to benefit from cheaper life insurance premiums.
You may be fit and healthy right now, but it doesn’t take long for life to take a turn for the worse. With the right level of life insurance, you can sleep easily knowing that your family will be financially secure if you were to die in the next ten, twenty or thirty years and beyond.
What age should you get life insurance? - What's the youngest age you can get life insurance?
You have to be 18 to buy life insurance, but once you pass that milestone, there is no minimum age that you ‘should’ take out life insurance.
If you start your first full-time job aged 18 then you will comfortably be able to afford a monthly life insurance premium. As soon as you start a family, or have somebody who is reliant on your income to get by; that is when you should start seriously considering taking out a life insurance policy.
Your policy should provide enough cover to ensure that your loved ones are not left to pay any large debts, such as a mortgage, or forced to struggle through the inevitable grieving process in the knowledge that they no longer have a regular source of income.
Should I buy life insurance if I have no dependents?
“Do I need life insurance if I have no mortgage?” is a commonly asked question, and the answer in most cases is yes. As a young person there is every chance that you don’t have anybody to provide for other than yourself, so why would you need life insurance? The truth is that many individuals take out a life insurance policy to cover the costs of their funeral when they pass away.
The average funeral in the UK costs in excess of £4,000 which, while not an overwhelmingly significant sum, would be an unwelcome bill that would need to be footed by your loved ones left behind.
It’s also important to remember that, while you don’t have dependents now, you might in the future – if your health begins to deteriorate you’ll find that future premiums could more than double in price. Get life insurance early to avoid future price hikes.
What is the best type of life insurance for a young person?
Most young people opt for a term life insurance policy – this is taken out over a set period of time and usually used to provide cover up until the policyholder’s children grow up, their mortgage is paid off or they reach retirement age.
Term life insurance is cheaper than alternatives such as whole of life cover. This is because whole of life cover is an insurance policy that covers you for your entire life, meaning that the insurer is guaranteed to have to pay out – in this case, they hope that you live long enough to pay more in monthly premiums than you will eventually get back.
Get a life insurance quote with Unite Life
If you’d like to take out a policy, or just need some expert advice on life insurance, you can call us today or fill out a simple contact form – we’ll be in touch at a time that suits you!