Millennial Survey on Life Insurance - New Data from Insuranks
What age should you get life insurance? While there isn’t a set rule for when to get life insurance, the most typical recommendation is to buy it while you are younger. It tends to be more affordable at a younger age, and 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. The main reason holding many of them back? Finances and confusion surrounding the insurance process.
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:
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.
There are several reasons Millennials do not have life insurance, but the most common reason is cost. In fact, 2 in 3 Millennials shared they’ve not gotten it just because it’s too expensive. Others explained it’s because they have no family to support or that they are overwhelmed by the complexity of it all.
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.
Many Millennials appear to already have regrets about not getting life insurance earlier in life with nearly 1 in 3 (29%) wishing 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. Overall, when choosing insurance, Millennials say the most important thing to them is cost followed by coverage and policy flexibility.
Of Millennials who have life insurance, the 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.
So, are Millennials buying life insurance? The short answer is yes. At least some Millennials are buying it, but others are holding off because of cost concerns or confusion surrounding the insurance process. This process can be difficult to understand and navigate but don’t let it intimidate you from making important life decisions. Do your research about life insurance to decide whether or not it’s right for you at this stage of your life.
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.
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