If you are a Millennial, it’s better to bargain than to miss the life insurance

A person buys life insurance when he/she is getting married, need to buy a house or have kids. These all reasons are enough for getting a life insurance policy. But you may find it difficult to pay for these life insurances as other financial priorities may obstruct you especially if you’re a Millennial. It’s easy to get a life insurance these days. These are affordable and easier than before.

We have seen that people overrate the price of life insurance, especially young people come under this observation. According to a study, most people of the age group of the 20s and 30s wrongly think that they won’t be qualified for life insurance. The study that states this fact is 2017 Insurance Barometer Study by Life Happens. It’s a non-profit research group which is supported by brokerages and insurers and also LIMRA (a consulting group and global life insurance research group).

Is there a need for life insurance?

According to Rachel Podnos, a financial planner with certification in Wealth Care LLC, Washington, D.C., It depends on you whether you need life insurance or not. This can be known if you ask yourself a question: “Is there anyone who will financially be affected if you died?” If there is anyone who is financially dependent on you and may have to face difficulty in paying your debts, then you must need a life insurance.

The common reasons for purchasing a life insurance are getting married, buying a home and having children.

An individual can think of purchasing life insurance if he/she has a private student loan. Rules vary for various private student loans. For example, federal student loan gets discharged if the borrower dies and private student loans have different rules as per lender. If the borrower dies in case of a private loan, his/her parents need to pay the debts if required by the lender.

If you are alone, no one is dependent on you financially and you don’t have a debt to pay, you don’t need life insurance at all.

Life insurance is affordable even if you’re not rich

In an insurance survey, it was asked from the respondents about the cost of a $250,000 term life insurance policy for a 30-year old healthy person every year. The average response of the respondents was $500 which is three times more than the original price of the policy i.e. $160. Some of the millennials of the age group 18 to 36 even responded the higher value per year i.e. $1,000 or maybe more for a year. The insurance study concluded these estimates.

According to Marvin Feldman, the president, and CEO of Life Happens, people don’t search for life insurance as they think it would be beyond their economic considerations.

The millennials have the benefit of buying life insurance in their age. As the age increases, the policies start getting expensive. The life expectancy reduces and there is an increase in possibilities of getting health issues and problems.

The insurance study gets into the conclusion that nearly 40% of the Millenials have a thought of not qualifying for the insurance coverage as compared to 25% of the generation with age group of 37 – 52. The remaining 20% of the people between age 53 – 64 and 15% of the senior citizens think that they won’t get insurance. But the ones with the least age group are likely to get the best price for insurance policies.

What to buy and at what price?

Basically, there are two main life insurance types.

Term life insurance and Permanent life insurance

Term Life Insurance: The insurance that covers a fixed period of time like 10 years, 20 years, 30 years etc. It is very simple to understand and is the least priced. Most of the families use this insurance.

Permanent Life Insurance: The coverage for permanent life insurance lasts for a lifetime.

The kind of insurance you want to buy depends on your financial dependents expenses and their needs. You need to have an idea of the policy that remains with you until you pay for your house, your kids are grown and you become financially strong. Different individuals have different size and amount of insurance depending on their finances and needs.

In general, buying insurance is beneficial for paying mortgage and debts, funding college education for your kids as well as using the funds from the policy as income for several years so as to provide financial security to the family. Experts from the field recommend that buying coverage to overcome minimum seven years of your income.

Place to buy life insurance

You may get offers at work for life insurance. But this insurance is not as much beneficial for your spouse and kids. And one of the drawbacks of this insurance is that coverage will also end when you leave the job.

You can also purchase additional coverage during work. The process of applying is simple and this extra coverage is normally transferable. So, you can keep the coverage even if you leave the job.

A healthy person can be able to get less- expensive coverage himself. One of the methods to find coverage is online insurance that you can begin by giving a quote you want. You can also buy life insurance from an agent or straight from an insurance company. Some companies don’t even take a life insurance medical exam.