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Be Wise With Money

3 Reasons Millennials Should Consider Life Insurance

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Born between roughly 1982 and 2000, the millennial generation – also known as Generation Y – is the largest in U.S. history with a population of more than 83 million, according to the U.S. Census Bureau. At the same time, many studies have found this generation to be the most underinsured.

It's likely that this may be because many Gen Y individuals think they're too young for life insurance. Or perhaps they're focused on paying down student debt rather than thinking about life's future what-ifs. Another major factor: Millennials think life insurance is too expensive.

In fact, the 2015 Barometer Study from LIMRA and Life Happens found millennials overestimate the cost of life insurance by more than 200%! What many 20- and 30-somethings may not realize is that they're actually at an ideal age to purchase life insurance coverage.

So if you're a millennial and think you're too young for life insurance or that it's too expensive – think again. Here are some top reasons life insurance for millennials may be a wise choice:

1. Life insurance is generally less expensive while you're still young.

Age, among other factors, can play a role in determining the premiums on your life insurance. That's because life insurance premiums generally increase as your life expectancy decreases. Buying coverage now can potentially save you a lot of money down the road. Start by using our helpful calculator to determine how much life insurance coverage you may need.

2. You're at a lower risk for health issues as a millennial.

Closely related to young age is good health. Many diseases and medical conditions typically develop later in life, so being in your 20s or 30s means you're probably less of a health risk in the eyes of insurance companies. The 2015 Barometer Study notes that being young and in good health at the time you purchase life insurance can make it surprisingly affordable.

In addition, you can ensure future insurability. It’s not always easy to think about it, but your health can change without warning — and that could affect your ability to get insurance and find affordable coverage.

3. Help relieve your parents or heirs of inheriting your student loan debt.

Unfortunately, debt doesn't disappear when you die. So if you unexpectedly die while you're still paying off student debt, your family may be left to foot the bill if they cosigned on loans. Life insurance proceeds can help cover what you still owe so your family can grieve your loss rather than fret about your debt.

The fact is that life insurance isn't just for when you're older, and it's more than just protecting your loved ones once you're gone. Life insurance is something to consider at any age, but buying sooner than later may be most beneficial depending on your circumstances. Your local Thrivent Financial representative can help you figure out your life insurance needs and determine what would best fit with your overall financial goals.

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