All too often, thinking about the future seems unnecessary.
In reality, every decision you make today affects your future.
As you get older, more financial responsibilities come up. With mortgages, debt repayments, healthcare bills, and monthly bills, life insurance may not be on the front of your mind to purchase.
However, young, single individuals aged 18-35 should consider life insurance as a financial first step to protect their future loved ones.
In fact, only 52% of Americans own life insurance, leaving nearly half of the population uninsured.
In 2022, 34% of adults aged 18-24 own life insurance, and only 52% of Millennials own life insurance.
Additionally, compared to older generations, 27% of Baby Boomers own life insurance, and have coverage after retirement age, which significantly increases the rate of premium.
While statistics vary, the theme is the same: Young generations are thinking about life insurance but are misinformed.
Barriers to coverage
Based on current trends, it appears that Gen Z and Millenial individuals are thinking more about their future, but still, there are barriers to coverage that have prevented purchasing life insurance to be a priority.
Extra cost
One of the most common barriers to owning life insurance is believing it is too expensive, but the earlier you apply the cheaper the premiums.
According to New York Life Insurance, 50% of Millennials overestimated the cost of life insurance, which could have prevented them from purchasing a plan.
Between high rent payments and student loan debt payments, it can be hard to justify another monthly payment for something you may not need.
However, the cost of life insurance is lower than you may think. While factors like health, age, and gender play a role in your monthly premium, the premiums will be the lowest now, so it is the best time to enroll.
Purchasing a plan now can help to keep your costs low and will “lock it in” for the entirety of your policy, meaning it cannot be raised as you age.
Lack of knowledge
Another barrier to coverage is a lack of knowledge about life insurance. Life insurance is typically not part of the traditional curriculum in schools, so many people do not know what it is or how it works.
Additionally, life insurance is confusing. Between term policies and whole-life policies, it can be difficult to know what policy is right for you or the amount you actually need.
Instead, educating yourself about life insurance and consulting a licensed broker is the best way to learn more about what policy is right for you. While it may be easy to enroll in a plan on your own, you could end up underinsured and leaving your loved ones at risk.
Believing it’s not needed
Finally, one of the most common barriers to owning life insurance is believing it is not needed right now.
Living in the present is a good way to enjoy life, but thinking about the future should also be important.
Life insurance is used to help your loved ones protect their wealth and lifestyle. Even if you do not have a spouse or children in your life now, what about siblings or other family members? Having a life insurance policy can help them with any unexpected expenses that may arise when you are gone.
In conclusion, although it may be hard to think about the future, it is necessary when it comes to managing your finances. Changing your mindset to be future-focused can make a difference when deciding to purchase a life insurance policy. Your future self will thank you.
Need help to find a plan? Contact me today for a free quote.