An increasing number of people in the United States, especially young Americans, have taken a higher interest in life insurance in the past year. About 31% of consumers say that the coronavirus pandemic has made them more likely to buy life insurance within the next year, according to the LIMRA and Life Happens organizations.
Millennials or people over 40 were the most influenced; nearly 50% of those surveyed said they are now more likely to purchase life insurance because of COVID.
COVID - 19 raised awareness about the important role life insurance plays in family financial security, said David Levenson, president and CEO of LL Global, LIMRA and LOMA. The research shows 42% of Americans would face economic hardship within six months if the primary wage-earner died unexpectedly.
The teens are at the highest risk for millennials in the US — more than half of millennials have no life insurance coverage, said Levenson. The good news is 48% of millennials plan to buy coverage in the next year. While we know not all will follow through, our industry needs to help these young adults get the appropriate coverage that will protect their families.
There are many good ways to compare life insurance products or consider long term's life insurance policy.
One industry expert, Megan Cherry, a licensed agent and Director of Customer Experience at Bestow, gives five reasons why millennials should consider life insurance now.
You can lock in a healthy lower rate while young and healthy.
Buying life insurance policies when you're young and healthy with less medical history, and locking in low rates or getting permanent insurance can help save money later on.
The younger and healthier you are, the more affordable insurance you will have, Cherry said. For example, a healthy 35-year-old woman can purchase a $30 per month 20-year - life insurance policy for as little as $20 per month. Unfortunately, none of us knows what our health will be like six months, one year or two-plus years from now, so it's best to purchase coverage once you have financial dependents and lock in the pricing for your policy's duration.
to see your coverage options and save up to 40% on regular premiums by comparing life insurance quotes from multiple providers for different types of policies. Credible's partner, Policygenius, can help you schedule a medical exam, fill out paperwork and negotiate with the insurance company comprised in the regular life insurance cost.
After getting married and having children, many people depend on their partner or family members for financial support. Millennials are currently the prime age for starting families, so life insurance can help with income replacement.
Many experts suggest that policy providers consider a premium amount that is at least the cash value of approximately five times their annual pay.
Most couples rely on their partner for some level of financial stability, including split large budget items like rent or the mortgage and all the expenses of raising a family together, Cherry said. With life insurance in place, your loved ones have a life safety net in case the worst were to happen to them.
Millennials who are now buying homes should also consider buying life insurance with the policy's cash value at least equal to the home’s value. Currently the largest population of homebuyers, millennials can get life insurance policies that pay out at least the cash value of their home to help get the mortgage paid off, preventing beneficiaries or heirs from having to scramble when figuring out what to do with the house.
The advancement of technology has made buying things much easier. Many millennials shop for their groceries or even order takeout with virtual assistant tech like Amazon's Alexa or Apple's Siri. Same-day delivery has become an industry standard, and apps and plugins can quickly tell you if you're getting the lowest price for an item without having to compare shop.
Life Insurance is no different. Through a marketplace like Credible, you can quickly compare several insurance companies for different types of life insurance at once and get a quote by filling out quick information like your age, gender, zip code, desired coverage amount and policy length.
Many employers include life insurance as a benefit, but millennials could lose this benefit because it is job-dependent if they switch jobs.
It's generally better to have insurance out of work, so you always have coverage in place whether or not you switch jobs, Cherry said.
Millennials are already thinking more about life insurance policies, as about 66% of respondents on the 2021 Insurance Barometer Study say they have dependents under 18 living in their households. Additionally, the study found that 43% of millennials believe they are more concerned than others about leaving their dependents in a rough financial situation.
The silver lining to this pandemic for our industry is that awareness of the value of life insurance is at an all-time high, stated Faisa Stafford, President and CEO of Life Happens. Twenty-two percent of insured Americans believe they need more life insurance. For those without coverage, 59% say they need life insurance, which represents 73 million Americans.
As educators about the importance of life insurance, we know that when people understand the need for life insurance and purchase it, they can take control of one important aspect of their financial futures, Stafford said.
If you are interested in life insurance and want to see what options are available to policyholders, call Credible or talk to a Life Insurance Expert for additional information or just fill out the form on this page.
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