Nowadays, most millennials have a laundry list of financial responsibilities, so you’d think life insurance would be a low priority. But many experts believe that insurance should be a fundamental part of a millennial’s financial plan.
Understandably, life insurance is typically the last thing millennials focus on. They are mostly concerned with monthly budgets and paying off debts. But if you have people dependent on your income, such as a spouse, a child, or aging family members, not having life insurance can derail all your plans. An insurance safety net has to come first, not last.
Most millennials have yet to build up their TFSAs, accumulate home equity, or build savings that can support their family if they were to die. So until they’ve built up those nest eggs, a life insurance policy is a nice pot of money that can take care of dependants if things go awry.
The necessity of insurance grows with your family. Spouses, children, and mortgages all increase the need for insurance coverage. Thankfully, insurance is cheap to get when you’re young. A 20-something in good health can get a 25-year term life insurance policy with a payout of $1 million for as little as $25/m. That’s a lot of protection for only $1 to $2 a day. A 35 year old can get a $1 million policy for as little as $45/m. The great thing about applying for insurance when you’re young is there’s no need for invasive blood tests or even a conversation with a salesperson – you can apply for insurance online, quickly and cheaply.
Get A Policy That Works For You
Figure out what you need. If you die tomorrow, will you leave anyone in a tough financial spot? If the answer is yes, you need to get life insurance. There are two types of insurance – term and permanent. Term insurance is in place for a specific period of time: often between five years and thirty years. If you die during the term, your beneficiaries collect the benefit.
Permanent insurance is something you need to be wary of, especially as a young buyer. Permanent insurance is much pricier than term life insurance because it includes an investment component which comes with management fees. You’re likely better off buying a cheaper term life policy and taking the savings and investing on your own. Experts say that for most millennials, term coverage is the way to go.
When thinking about how much coverage you need, you need to think long term, not just your monthly bills. If you are married, will your spouse be able to pay the rent or mortgage? Do you have kids who you want to attend university without taking out loans? You need to consider all possibilities and prepare for it.
Work Coverage May or May Not Be Enough
You might have some life insurance provided through work, with a death benefit between $25,000 to $100,000. Even if you are lucky enough to be on the high end of the scale, chances are you’ll need more protection. It’s important to remember that the moment you leave your job, you may lose your coverage.
Many employers who provide life insurance also give employees the option to buy supplemental coverage. However, the supplemental coverage a workplace offers may not be enough or may be inflexible. The convenience and automatic payroll deduction of work coverage has its merits, but you should still shop around for outside policies. If you aren’t a smoker and don’t have a pre-existing medical condition, you may find a better deal online than through an employer. If you do go with work coverage, confirm how much, if any, is portable. Portable work insurance means that if you leave your job, you can keep your insurance. This feature is becoming less common nowadays, so be sure to check.
Juniper Life Insurance Offers Affordable Term Policies Online
With Juniper Life Insurance, getting life insurance is made easy, so that you and your family can start living more comfortably with as little hassle as possible. Our online application is quick and simple with no invasive blood tests. Sign up today and give yourself some piece of mind.
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