You’re young, looking to save up to travel or maybe buy a house. You’ve got a lot of expenses and goals/dreams, should you really be thinking about insurance?
Being a millennial myself, I know that insurance isn’t a popular topic of conversation, so here are a few things to consider about getting insurance while you’re young:
1. Your most important financial asset = you.
Yes, I know you’ve probably heard before that your biggest asset is a home, or some other material thing. But the reality is, nothing material can exist without your ability to work and pay for it. Your skills, knowledge and abilities are the biggest assets you have and should anything happen to your ability to perform, you need to consider:
- How will the bills get paid?
- How long can you go without a pay cheque?
While we all have car and home insurance, we need to consider insuring ourselves and not just material things.
You may be thinking when I say insurance, that I automatically mean Life Insurance, but as a young person your chances of passing away are much lower compared to becoming disabled or getting a serious illness.
An insurance priority should be disability insurance or critical illness insurance so that your standard of living can remain relatively the same while you recover and are unable to work, or so that you can get the assistance you need.
2. It’s cheaper – you’re younger and healthier.
One of the simplest reasons to get insurance while your young. Life is truly unpredictable in terms of health, and any health condition can hinder you from getting a good price and/or a more comprehensive plan. Getting insurance early is what we like to call “protecting your insurability”. If you can afford the low premium while you’re young I guarantee you’ll thank yourself later!
3. Your employer’s insurance may not be enough & do you know if you’ll be at the same job many years from now?
One of the most common objections to buying insurance is that you have it through work. While work benefits are a great perk, the millennial generation seems to be one where people change jobs the most, or don’t stay at one job for their entire lifetime. And in addition, many workers are being hired as contract with limited benefits and uncertainty in their jobs. Having your own insurance policy with make sure that you always have coverage and don’t have to worry about the fine print of your company’s group benefits. Because honestly, If I asked you to tell me exactly what coverage you have at work – could you tell me?
4. Do you want to leave your family with debt or costly funeral arrangements?
In terms of life insurance, depending on the stage of life that you’re in, you may have some debt. Weather that’s student loans, a mortgage, credit cards, etc. Just because you’re gone, it doesn’t mean that the debts don’t still need to get paid.
In addition, should you happen to pass away, do you really want to leave your family with a costly unexpected burial bill in their time of mourning?
5. Your policy can help you accumulate cash.
If you decide to go with a whole life or universal life insurance policy; these types of policies not only provide coverage but also have the ability to accumulate tax deferred cash that you can use during your lifetime.
So those are just a few reasons to consider insurance as a millennial.
As always, if you have any other questions about insurance please don’t hesitate to contact me.