For many Millennials, life insurance doesn’t feel like an imminent priority. Rather, it’s something to worry about later down the line.
“It never really crossed my mind,” said Julie Kronick, a 23-year-old who recently got her first job out of college at a nonprofit in New York.
“They don’t offer insurance, it didn’t come up and I didn’t particularly care,” Kronick said.
And Kronick is not alone in this sentiment. Despite insurance companies ramping up their advertising and appeal to the most profitable demographic, Millennials aren’t biting.
While the majority of surveyed Millennials agreed that they needed life insurance, only 11% of individuals between the ages of 18 and 34 actually have it. In the general population, around 85% of individuals agree that they need life insurance, yet only 62% have it.
While life insurance may not seem like an imminent necessity, failing to acquire it sooner than later can reap serious financial consequences. Not only is it less expensive to invest in life insurance at an earlier age, but it provides a sense of security for loved ones and family down the road.
Yet despite its importance, many Millennials say that they simply cannot afford the expense at this point in their lives.
Instead, it’s things like rent, health insurance, loan payments, utilities, and groceries that take priority while expenses like life insurance get shoved aside.
But Millennials with loans may want to reconsider stalling the acquisition of life insurance.
“Life insurance really should be a source of consideration, particularly if you have debt,” said Amy Jo Lauber, founder of Lauber Financial Planning in West Seneca, NY. “A lot of Millennials have credit card debt, auto loans and are struggling to make ends meet, but who will be left responsible if they pass away?”
The right life insurance policy can effectively absorb these loans, protecting loved ones from taking on these financial burdens.