Studies show that Millennials are presently not saving enough for retirement. This could be a huge problem down the road. But there is a relatively inexpensive way to start to give your family the financial protection they need – life insurance.
Let’s face it. Millennials have a lot on their plate. They’re smart. They’re tech-savvy. And they have the numbers. According to Time magazine, there are 80 million millennials (individuals born between 1980 and 2000) in America, which is the biggest age grouping in the history of this country.
But, unfortunately, there simply hasn’t been enough well-paying jobs available to accommodate the massive amount of millennials in the marketplace seeking full-time employment. On top of that, many members of Generation Y are deep in credit card and student loan debt, paying high rents, car payments, and other big ticket items. Consequently, many of them are living paycheck to paycheck.
So the question is: Will most millennials ever be able to afford to retire? Some asset management firms recommends that most people need to save about 15 percent of their annual salary for retirement. Unfortunately, millennials are currently only saving at a rate of only about 8 percent on average.
So with all these concerns, what should millennials be doing plan for retirement?
There is one financial product available that millennials can afford that can help provide some financial security for their family…life insurance.
Life insurance turns pennies into dollars when your loved ones need the financial support the most. In most cases, the breadwinner’s income is the biggest asset a family has. The loss of that income can leave a family financially devastated.
If you’re a millennial, you’re probably thinking, “Hey, I’m young and healthy. I don’t need life insurance right now. Besides, what’s in it for me?”
The short answer is…quite a lot. In fact, being young and healthy is actually the best time to get life insurance. Why? Because most of the time, you will get the best rates for coverage when you’re young and healthy. Makes sense, right? Because as we age, things typically start to go wrong, healthwise. Parts start to break down, so to speak. That’s typically the way it goes. Bottom line…the earlier you get coverage, the more you’ll save.
Having life insurance gives those left behind time to heal, and keeps them from falling into a financial black hole. The policy’s death benefit can pay for funeral expenses, outstanding bills and utilities, and can help your family save for your kid’s college.
Millennials need life insurance now more than ever.
According to a 2015 study by the Life Insurance and Market Research Association (LIMRA), a majority of millennials know they need life insurance, but less than 20 percent say they’re likely to buy a policy in the near future.
Why are millennials not buying life insurance? Who knows? Maybe it’s because they think they can’t afford it. Maybe they think coverage it’s just too expensive.
Believe it or not, if you’re young and healthy, life insurance is pretty darn affordable. That’s right. You can get a term life policy for less than $250 a year (depending on length of term and amount of coverage). That’s less than a dollar a day! That’s cheaper than a cup of coffee!
But remember, term life insurance is only “temporary insurance.” It only provides coverage for a set period of time (or term), typically 10, 15, 20, 25, 30 or 35 years. However, some term life policies give you the option to convert to a permanent life policy, which allows you to keep your policy in force for the rest of your life (assuming, of course, that you pay your premiums).
Even whole life insurance…the gold standard of life policies…can be much more affordable than you think. Especially if you purchase it when you’re young and healthy. Whole Life policies offer lifetime coverage, level fixed premiums, and accumulates tax-deferred cash value. Again, this type of policy can be very affordable if you buy it early enough.
So if you’re a millennial, you can get the life insurance you need to take care of your family…at a price that won’t break your piggy bank. How awesome is that?