Millennials are often described as carefree and somewhat irresponsible spenders. However, with the current pandemic-induced global crisis, many have become more cautious about their health and finances. Life insurance policies have become more popular in the light of unanticipated health-related emergencies and expensive medical care costs.
However, not all policies are created alike, and while looking for life insurance, you need to consider several factors.
Here are five important questions that you should ask yourself before taking out life insurance for millennials.
1. Why Do I Need Life Insurance?
Life insurance is important for everyone, irrespective of gender, age, or race. This policy is designed to provide financial support for those who may experience difficulties resulting from the policyholder’s demise. Your children, partner, or parents can be listed as beneficiaries in your policy and can benefit from the payouts after your demise.
2. Am I Too Young to Apply?
There is no such thing as being too young to apply for life insurance. In fact, the younger you are, the lower your premium is likely to be. This is because the possibility of a 30-year-old outliving a 20-year term policy is very high compared to a 60-year-old.
Waiting till you get married or have children may not be wise, as there’s no way to ascertain the future. Also, health problems can arise unexpectedly, so it is best to be prepared for such emergencies.
3. Term Life Vs. Whole Life: Which One Should I Choose?
Term life insurance is a good option for millennials because it is a straightforward proposition wherein the policyholders must pay a fixed premium over a specific period. If the policyholder dies within the period, the beneficiaries can make claims.
Whole life insurance covers the policyholder throughout their life. Although whole life insurance seems to the better option, it can cost ten times more than term life insurance.
4. How Much Coverage Do I Need?
The amount of coverage that you need depends on your unique circumstances. Ideally, you must consider the amount of financial support your beneficiaries will need in case of your demise. One way to determine the best coverage amount for you is to use an insurance calculator (available online).
5. How Can I Save Money on My Life Insurance?
Understandably, an unmarried person may not be able to determine the best coverage amount because there have no spouse or kids yet. This is where flexible coverage comes in. Flexible insurance allows you to make necessary changes to your policy at different stages of your life. Here, you can increase or reduce your premiums throughout the policy’s life, ensuring that you have the right amount of coverage at every point in time, without spending too much on unnecessary coverage.
As a millennial with years of opportunities ahead, you want to rest assured that you have adequate life insurance in place to cover you in the event of uncertainties. At James Page Insurance, our experts can help you take out a life insurance policy that suits your specific needs. Contact us now to get started!