When you think about all the financial worries and situations that 20-somethings face every day, you might feel a tad bit sorry for them. But when you look more keenly at their situation, you may think that at least some, if not most of them, have life insurance coverage. But that is not the case.
Life insurance coverage could be a fundamental piece of their financial plan and yet very few of of them actually go for it.
Most millennials are more focused on how they can budget their money and pay off their debts. But in situations where you have other people (such as children) who are dependent on the income you make, not having life insurance coverage can end up derailing everything. Life insurance coverage basically acts as a safety net. It should be a haven that you go to first, not last.
The reason why you find this kind of situation with almost all millennials is because most of them are yet to accumulate home equity, build up a good 401k, or have enough savings in their accounts that can support and push the family for a long time should something happen that makes them lose their jobs or even death.
The stakes and risks grow along with your family and your children, partner, and mortgages all bolster your need to get life insurance coverage. Ironically, you find that almost all employed millennials are in a position where they are able to pay for the life insurance coverage if they decide that they really need to have one for themselves.
Come to term
One thing you need to know about insurance is that they consist of two types: term insurance and permanent insurance.
Term insurance, as the name suggests, is usually the type of insurance which is in place for only a specific term which can run between five to thirty years maximum. But the premium you pay every year never changes with a level-term policy. It is usually based more on your health from the time you are purchasing the premium, your age, and the amount of payout which you wish to provide. This is the death benefit.
If you die within this term, your beneficiaries are the one who will collect and use the benefits to survive and continue living their lives comfortably. But if you are still alive by the time the term you agreed upon ends, then you will walk away with nothing. But good news at this point is that you are still walking at least. But some people might think that this is a waste of some good money. In such a case, you can put the money in other policies like car or homeowner’s insurance, which can protect you from financial calamities.
Figure out your needs
You can do this by asking yourself whether you will be leaving anyone in a financial lurch should you die now. And if the answer is yes, then it is time that you looked into getting life insurance.
Do you have a question about life insurance? Click here to contact Davco Insurance today!