The Millennial Generation is always in the spotlight nowadays because of the things they do differently than what their parents did in the past. The Millennials or those who are born between 1977 and 1995 are delaying traditional milestones in life according to a new study. The preceding generations were quick to buy their first homes, be married, and start their own families as soon as they got their first job. The Millennials, however, are hesitant to dive into these new responsibilities. This is largely due to the fact that they grew up during the Great Recession of 2009. The Millennials also face lower incomes and higher unemployment rate than previous generations.
Because of this, Millennials also delay getting life insurance for themselves. The concept of death or simply being ill is not always a topic they voluntarily welcome. And if they don’t have any dependents at this stage, all the more they lack reasons in buying a life insurance.
What they don’t realise is that life insurance is not just about death benefit or protecting your loved ones in case you become ill. Life insurance is also an essential part of your overall financial strategy. Buying life insurance while you are young will give you guaranteed cash value in the future. Today is the best time for Millenials to lock in premiums and death benefit.
Why get a life insurance before hitting 30? Most permanent life insurance can be a stable part of a secure financial future. Millennials usually prefer a slow and steady approach to investing and life insurance can give them just like that. When you buy permanent life insurance now, it starts building cash value that you can use for emergencies or opportunities in the future. If later you decide you won’t need the death benefit anymore, the cash value can be used towards retirement.
The concept of insurability is something that is not completely understood by most Millennials. They don’t feel the need yet because they feel like death or illness is still far away and they don’t even have dependents to give protection. But getting a life insurance while you are young has many benefits. First, the cost of life insurance depends on many factors. One of these is your age and health at the time of taking out a policy. Taking a life insurance while you are young and healthy will give you great policy rates. Also, if something happens to your health in the future, your rates will always be based at the time you bought the policy. In some cases, you can also buy additional insurance in the future at the rates based on your health at the time you originally purchased the policy. This is beneficial, especially if you later develop an illness like diabetes.
It is hard to predict what tomorrow may bring. It is always best to think and prepare ahead than be sorry later. Think about how your life has changed in the last five years. You might have left home, started a career in a new place, moved to your own apartment, and so on and so forth. Now think about the next five years. Do you think your situation will be the same? Certainly not.
If you want to know more about insurance and policies and if you want to plan your short term and long term financial goals, Focused Advice is here to help you! Give us a call today at 02 9003 0611.