Life Insurance Is a Tough Sell for Millennials
Research has shown that millennials cited saving for a vacation as a priority over purchasing a life insurance policy. A majority of millennials stated that it was important for them to pay for expenses like cable, Internet access and mobile phone instead of buying life insurance. Generally, young people think that insurance is something you only need to think about when you age. It is something for their parents and not them.
Even young people need life insurance; especially, if they have children and are not covered in a group term plan with an employer. Even a group term plan is not adequate; it might not be enough for someone who has high debt and many dependents. Usually, millennials switch jobs quite often and a group life insurance plan will cease to exist once an individual leaves the organization. The main reason behind life insurance for millennials is that if they are married or have a family, the loved ones will have financial security when the breadwinner is no longer around. The insurance plan will provide income replacement to the loved ones.
The insurance industry is trying different ways to attract the young target audience who are not covered in a group term insurance to invest in a life insurance plan. Millennials and life insurance is an important debate because millennials are unaware of the risk factors and consider life insurance as an expense instead of an investment. Many traditional life insurance plans need a medical examination and this process does not appeal to millennials who are used to making a quick transaction on their smartphones.
To counter the aforementioned challenge, insurance companies have come up with a solution to compare different products online and make it easier to purchase a plan. There are many insurance options available in addition to term plans, which offer investment opportunities with an insurance cover. Anyone who is considering investing in life insurance should keep their personal needs, financial goals, and features of different plans.
Millennials should not ignore the fact that other financial needs are important but it might be time to consider the priorities. It cannot be stressed enough that life insurance should be at the top of their list. It will ensure that any outstanding debt is met when the earning member of the family is no more. If the insured has any debt, the sum assured received from a life insurance plan can be used to pay the liabilities.
Many millennials think that life insurance is complicated but this is a misconception. If you are one of them, you should know that it is a straightforward insurance plan. If you access your needs and consider the available options, you will be able to find the most suitable insurance plan. If you need help, you can take assistance from the executives to choose a plan. A life insurance plan is not limited to a term plan. You can also consider other investment avenues such as endowment plans and unit-linked insurance plans, among others, as per your investment horizon and risk appetite. You need to understand a life insurance plan is the most basic financial security you can provide your loved ones and choose a suitable plan accordingly.