Skip to content

6 Things Millennials Need to Know About Getting Life Insurance

Written by prositesfinancialJul 24 • 4 minute read

life insurance for millennials

As a millennial, you may not have thought much about life insurance. Yet many millennials are now in their 20s and 30s, with college out of the way and kids on the way. You might have bought your first home, married your dream spouse, and even started a business. All of these things are awesome, yet they also introduce risks in subtle ways. If you were to die in a freak accident, what would happen to your spouse or partner? What about your kids or your business?

If you don’t want all those who count on you to be left hanging in the event of your sudden and unexpected death, life insurance is something you should consider. While it may not be fun to contemplate, none of us is guaranteed to live to any specific age, and life is full of inherent risks. Life insurance is a way of mitigating some of those risks, particularly for those who depend on you. Plus, it can be pretty affordable when you’re young, and insurers will consider you low risk.

While many millennials could benefit from having that financial security net that life insurance provides, research shows that they are the most underinsured generation. One of the biggest reasons they don’t buy insurance is the perceived cost. The best way to get an idea of what insurance would cost you is to get a quick online quote. Here are six tips to keep in mind as you search:

1. Shop by Quality and Coverage, Not by Price

While it may be tempting to shop on price alone and buy the cheapest insurance policy you can find, that won’t serve you well. Just as with anything else, you tend to get what you pay for with insurance. You want to make sure that you go with a highly rated and well-reviewed company that you can count on when it matters most. The last thing you want when it comes time to file a claim is a disorganized company with lousy customer service.

In addition to going with a reputable company, you’ll also want to check out all the coverage details and ensure you have adequate coverage for your needs. Too little insurance could fail to provide for those who depend on you if the need were to arise. You’ll also want to make sure you take out the right type of policy, whether term life or whole life. Keep in mind that this is not advice, but rather a general assessment based on what some financial experts recommend. Only you will know the best option after doing some research and possibly consulting an agent, financial advisor, or planner.

2. Maximize Your Discounts

Your insurance provider probably offers discounts, so check to see what those are. You might want to factor these in when choosing your provider and policy as well. You could get a discount for being a safe driver, being a college student, getting good grades, paying in full upfront, going paperless, or using autopay.

If you need car insurance, renter’s insurance, or homeowner’s insurance as well, you might consider bundling those policies with the same insurer too. Many providers offer discounts for customers who bundle several types of insurance with them.

3. Do You Need Supplemental Coverage?

Life insurance can cover many things and provide a lot of value, but it isn’t an end-all-be-all. For example, you might want to check if you need insurance for expensive electronics, jewelry, or other items that would be difficult or pricey to replace. You can combine this insurance with a renters or homeowners insurance policy to fill in the gaps, so the two policies cover everything.

4. Don’t Wait to Get Life Insurance

It is generally cheaper to buy a life insurance policy while still young rather than waiting until you’re older. Younger people tend to be a lower risk to insurers, and so they will pass those savings on to you. Student loans, mortgages, childcare expenses, and educational costs for kids can all be things that a life insurance policy covers in your absence. You probably don’t want your loved ones to be stuck with any of these bills, so life insurance is an excellent way to ensure that doesn’t happen.

5. Comparison Shop Providers and Policies Online

Yesterday’s insurance world ran by phone calls with agents who would set you up with insurance policies. Today you can find a life insurance policy in minutes from your smartphone. As with any significant purchase, comparison shopping pays. You will want to make sure you compare several different insurers and plans before committing to anything to make sure you’re going with the best company and the best policy for your needs.

6. If You Need an Agent, Go With an Independent One

There are still some things you’ll want to consult an agent about. Perhaps you need someone who is an expert and can answer all your questions. If you do decide to look for one, try to find an independent insurance agent. Independent agents can sell you insurance policies from any company because they don’t work for a specific one.

If you go with the other type of agent, a “captive agent,” they work for one insurance company and can only sell you a policy from their employer. You don’t want a biased agent selling you a plan, because they might not sell you the best one for you. Instead, they are more likely to sell you whatever will make their employer the most money or earn them the most commission. Going with an independent agent can help prevent this and give you access to a wide variety of insurers and policies.

Do you have any tips or suggestions that could help others navigate the life insurance industry? Feel free to share them here in the comments below!

Ready to make the
jump to better finances?

Click here to access our financial guide
and start practicing better habits for life.

%d bloggers like this: