Thursday, August 25, 2016

Millennial Matters: Do I Need Life Insurance?

Millennials are a diverse bunch. They’re single, married, parents, students, entrepreneurs and so much more. But, no matter the life stage, millennials typically have one thing in common: They want to protect their family and loved ones.

So, how can they accomplish this? Life insurance is one way. But, is it really necessary?

For me, it is. I’m a recent homebuyer, engaged (and almost married!) with two fur babies. If something were to happen to me, there would still be a mortgage to pay, a significant other now surviving on his income alone and two cats to feed. Life insurance helps protect each of these important things if I pass away. 

Now, just because I need life insurance doesn’t mean every millennial does. If I didn’t have a house, significant other and “dependents,” would I need it? Possibly not, as I’m young and in relatively good health. 

However, you still need to think about those left behind. Do you have enough money saved up to cover your funeral expenses? (For reference, the average funeral cost ranges from $7,000 to $10,000.) And, are you debt-free? If you answered no to those questions, these expenses could become your family’s responsibility to pay, and you may want to evaluate a life insurance policy.

But, where do you begin? With four out of five consumers overestimating the cost of term insurance – and millennials overestimating by 213 percent – you may feel like life insurance is out of reach. Start the evaluation process by deciding on a budget. Then, use a budget-first calculator to see how much coverage fits your budget. Because, when it comes to protecting loved ones, any amount of coverage can make a difference.