Really? Yes, really. Look – it flies in the face of reason if you’re looking at it from a traditional insurance perspective. I’m with you on that.
If we look at insurance in the traditional sense, we’re mitigating a risk that is likely to happen over a period of time where the results of that event happening would have a significant impact on your life (read; estate) and lives we leave behind. If you accept that definition.
Unless you have children, a spouse, a mortgage, a cause that you’re committed to positively impacting (in your lifetime or beyond), dependents (other than children, like ailing or aging parents) or a large estate that will have tax implications at death (even then you’d need someone who’s supposed to benefit from it), then – common sense would say, you don’t really need life insurance.
Fine. The traditionalists will say we all have final expense needs – as in, we all have a funeral to pay for and we’re responsible for that – save for those who don’t mind having someone else pay for it. Even then, the government will chip in to the tune of $2,500 to help out there. So, technically, you have that need. But to buy insurance in your 20’s or 30’s for that? Both morbid and a little unrealistic to be worth enough to move someone in to action.
So then, what? What would be worth while? Well, consider the following:
- Buying life insurance early will save you money in the mid to long term, because you’re young and insurance is cheaper when you’re young and healthy.
- Unless you strike gold – you’ll need insurance in the future anyways. And even with all that gold, you’ll have taxes to pay and there’s a strong case for insurance in that instance.
- In the case of permanent insurance or living benefits, you’ll build a cash value that you can tap into in the future – having this automatic saving mechanism is a plus for our inherit impulsive nature.
- You’re at your healthiest and insurance does not come easy or cheap later in life – especially with health issues (we’re talking simple stuff, like diabetes, high blood pressure and other stress related ailments). So, you’re guaranteeing that you’ll qualify for it, before you need it. And that’s the point of insurance.
- There’s a lot to be said about creating from the future – as in, purchase the kind of insurance you’ll need once you’ve achieved what you say you want. None would have been the wiser, except you. You knew it.
- Finally, and most controversially, use it as an investment.
We’ll get some flack on number 6, so here’s full case study on that, click below.
What you need to know:
- The concepts offered are based on information available at the time of writing, it is subject to change.
- Coverage is not guaranteed for everyone – this coverage is underwritten and based on an applicants age, sex, smoking status, family history, medical history and a slew of other pertinent information.
- As always, seek advice from your financial professional, accountant and tax lawyer.
- For more information regarding life insurance for millennials, reach out to our office – we are elated at the opportunity to offer a no obligation consultation.
The information in this article is derived from various sources. We do our best to ensure the sources are both accurate and reliable and – information changes. As such, we make no guarantee or warranty to the completeness of the information presented here or it’s application to your personal circumstances. The concepts in this article are for informational purposes only. Before acting on any of the above concepts, reach out and get a personalized look at the applicability of this and other insurance strategies for your unique personal or corporate circumstances.