A common misconception amongst most millennials and Gen Xers is that life insurance is unnecessary and expensive.
"I have life insurance at work, do I really need to buy more"
"I don't own anything yet, why do I need life insurance?"
"I don't need that"
"I can't afford more insurance right now, on top of everything else"
I hear these statements often, and every time it makes me cringe. Clearly, based on my occupation, I'm "risk adverse". Even before I was in the insurance industry, before I bought my first house, I purchased life and critical illness insurance. But I'm a a little unusual!
For most of us (and I say US because I'm a Millennial too), we're just getting in a groove. We're starting to take our careers seriously, maybe saving for or just bought a house, and are planning for or just started a family. These are all huge milestones in our lives, and it can get a bit overwhelming!
All this "adulting" can get exhausting!
Not only can these milestones wear you out physically and mentally, they can also add up financially! The downpayment on your house, mortgage/car payments, insurance, taxes, baby clothes, furniture, renovations, groceries, utilities, etc... it all can get very expensive. So I understand that the thought of buying life insurance - another expense - is a conversation you'd rather avoid.
Picture this: You and your partner just bought a house. You're thinking about starting a family in the next couple of years. Right now you have 2 incomes paying for the mortgage, car, insurance, gas, utilities, property taxes, etc... You're managing quite well and feeling pretty good! BUT think about what would happen if one of your incomes was lost? Could the other pay all the bills on a single income?
Most likely the answer is just barely or not at all. Life wouldn't be comfortable and changes would need to happen. Maybe sell the house and downsize, or move back home with family, until you could get on your feet again.
Which is more expensive: life insurance or supporting all those expenses on a single income?
For the average 25-35 year old, male, non-smoker, the cost of $250,000 worth of Term-to-65 life insurance would be between $29 - $36 per month. For a female the same amount of coverage would be between $21 - $27 per month.
The older you get, the more expensive the coverage gets, and the less options you have.
Build life insurance into your budget as young as you can! If not today, someday you'll have a house, a family to support or care for and all the expenses that come with it. If you buy life insurance now, it's one less worry later. Plus, you can same some money!
Peace of Mind is Priceless