The media paints us as carefree but we’re serious about our finances. We lived through the financial crisis and saw our parents struggle. As a result, our saving habits changed. Forty-one percent of us set aside money every month and most of us believe that saving for retirement is essential.
We’re concerned about insurance too. LIMRA’s annual Insurance Barometer Study shows that 54% of millennials have researched life insurance online. Two of five of us wish our spouse or partner would buy more coverage — and that’s much higher than Gen X or Boomers.
The reason we’re not buying life insurance isn’t a lack of interest. We’re thinking about it, doing research, and polling our social media connections for referrals.
The problem is competing financial priorities. For most millennials, paying for rent, utilities, or credit card debt come first. Research shows we also focus on paying off student loans, retirement savings, healthcare, and vacations. That makes sense. We worry more about the basics than other generations — and that’s reflected in our spending decisions.
Another reason we don’t buy life insurance is the perceived expense. 44 percent of millennials think the cost is a lot bigger than it actually is — over five times higher. Those surveyed guessed a $250,000 term life policy would cost a healthy 30-year-old $1,000 per year or more. The actual cost is much lower and this could be creating unnecessary barriers for millennials. Especially since younger and healthier applicants tend to see the lowest monthly premiums.
We may be delaying milestones like getting married, buying a home, or having children, but that doesn’t make us less vulnerable. Catastrophes happen every day, and by skipping life insurance, you could be leaving your family without a safety net.
Buying a 30-year term life insurance policy could cost less than a food delivery order or a few Uber rides. It’s unlikely the monthly premiums will ruin your budget, and the protection means one less thing for your family to worry about.