What age should you get life insurance? There isn’t a set rule for when to get life insurance. However the most typical recommendation is to buy it while you are younger. It is more affordable at a younger age.
In addition, at that point in your life, you’re less likely to be facing age-related health issues.
But Millennials are torn on life insurance. A new survey by Insuranks of more than 1,000 Millennials discovered that while over 1 in 2 (53%) do not own life insurance, 48% want it. So what is the main reason holding many of them back?
Millennials’ Insurance Expenses and Concerns
In 2023, 26% of Millennials had trouble affording their insurance, and 1 in 4 are already worried about covering their insurance premiums in 2024. The three types of insurance most important to Millennials are:
- Health Insurance
- Auto Insurance
- Homeowners or Renters Insurance
Life insurance was ranked the fourth most important. However, over 1 in 2 Millennials admitted they have refrained from getting life insurance due to the higher costs of other types of insurance.
Nearly 1 in 3 (28%) Millennials who don’t have life insurance think they don’t need it.
But 1 in 6 Millennials who are married shared they’d experience financial hardship within a month if their significant other passed away, and 1 in 2 would experience it within six months of their loved one passing.
Reasons Why Millennials Are Not Buying Life Insurance
There are several reasons Millennials do not have life insurance, but the most common reason is cost. 2 in 3 Millennials shared they’ve not gotten it just because it’s too expensive.
Many Millennials appear unsure about what to ask when getting life insurance or any type of insurance. Survey statistics show that 55% are confused by the overall process of getting insurance.
Millennials and Life Insurance
Most Millennials appear to already have regrets about not getting life insurance earlier in life. Nearly 1 in 3 (29%) wish they got life insurance when they were younger.
Of those with life insurance, 19% got it when they were 21 or younger, but on average, Millennials with life insurance got it at age 27.
Nearly half who don’t currently have life insurance want it, and 82% think having life insurance is important.
Strategies for Millennials to Afford Life Insurance
If you want to purchase life insurance but are worried about the cost, here are a few tactics you could employ as a millennial:
Start Small: If you are budget sensitive, consider commencing with a lower insurance policy that would still afford you some protection while you slowly work your way to increasing your overall coverage.
Compare Policies: There is no shortage of comparatives for provider websites out there as well as insurance brokers that help get the best rates. When it comes to different insurance policies for case coverage among other options, be sure to make that use of them.
Bundle Policies: An overall cost could be lowered if your life insurance bundling policies would allow you to combine multiple insurances such as car, house and life insurances permitting the same company to sell them.
Automate Payments: In order to avoid adding on late fees and a possible lapse in your life insurance policy consider setting up automatic payments to ensure your monthly premiums are submitted on time each time.
Seek Professional Advice: Should you want further information on how you can proceed to further tailor life plans that would directly cut across your wants and needs, consider reaching out to a financial advisor for help.
Top Why Reasons Millennials Get Life Insurance
Majority got it to help with end-of-life costs such as funeral and burial expenses. The other main reason for investing in life insurance was to support family living expenses, provide money for children, and alleviate debt.
More than half (55%) have whole life insurance compared to 40% who have term life insurance. Over 1 in 3 got life insurance when they started working their first job, 27% got it while starting a family, and 14% got it after getting married.
Some Millennials are buying life insurance. However Others are holding off because of cost concerns or confusion surrounding the insurance process. Do your research about life insurance to decide whether or not it’s right for you at this stage of your life.
Methodology
In October 2023, we surveyed 1,036 Millennials about their perceptions surrounding life insurance. Ages ranged from 27 to 42 with an average age of 34. 57% were men, 41% women, 1% non-binary, and 1% would rather not say.
For media inquiries, please contact media@insuranks.com
Fair Use
When using this data and research, please attribute by linking to this study and citing Insuranks.com
