You’re a full-fledged adult now, fresh out of college with your first real job. As you settle in to this phase of your life, it can be easy to focus on your immediate needs. That's a large part of the reason that only half of millennials own life insurance.1 At Western, we understand your concerns. But, we also want to make sure you are educated about the value of purchasing life insurance at this stage of your life. In the following segments, we break down some common concerns.
You are already familiar with insurance - for your car, your phone, or your apartment. Life insurance serves a similar but more important purpose. Life insurance does two things: it provides a payment for final expenses, and provides for loved ones after you die.
As a young person, you may not realize how much value you have to others. Commonly, young people have student loans. The co-signer on any kind of loan will become responsible for your debt after death. Is that a burden you want to leave behind?
You may also be considering your life partner. Even if you aren't married, you will want to consider how much of a financial contribution you are making to day-to-day living expenses. Over half of millennials say that they would have immediate trouble covering living expenses if the primary wage earner died.1
Life insurance is most affordable when you are young. For less than $19 a month, a 25-year-old man can purchase a 30-year term policy valued at $100,000.* That's less than you probably spend on take-out.
Term life policies are commonly recommended for young people like you. The name "term" means that the insurance coverage will remain in force for the duration you specify in your contract. This is a great way to plan for what life may bring -- be it marriage, children, or a mortgage. Additionally, you can discuss your needs with your agent anytime your life needs change.
The truth is, we don't have the fortune of knowing when we need life insurance. It could be tomorrow. We've also discussed the advantages of a lower rate when you are younger. The third reason is that when you are approved for coverage now, you can guarantee access to coverage later, regardless of changes to your health. Ask your agent about conversion options available to you with your plan, and how to best optimize them.
Work plans often expire when your employment does, so it may not be there if you change jobs for any reason. Additionally, many employers offer smaller benefits when compared to a Term Life plan offered by Western. The smaller benefits may cover your final expenses, but will probably not cover if you have other concerns. For more details about the disadvantages of Employer-Provided Plans, read our blog at this link.
Life insurance is a smart financial investment. Although Term Life is typically recommended for young people, there are also Whole Life products available which cost slightly more but do not expire.** Like Term Life, the Whole Life rates offered will be lower for you as a young person. Additionally, a Whole Life plan does hold cash value. Although it is recommended to either retain that value to increase the death benefit, or use it to purchase more coverage, it can also be used as a source for a loan in the case of an emergency, which may be valuable to you as you establish credit.***
Western Fraternal Life is here to help with your financial concerns, and talk with you to best formulate a plan to protect your loved ones. Call your Western agent or 877-935-2467 to make an appointment today.
12016 Insurance Barometer Study, Life Happens and LIMRA.
*Based on a non-tobacco super preferred. Individual rates subject to underwriting.
**Regular payments must be made for coverage to remain in force. Cash value dividends, if available, may be used to purchase additional coverage or make payments on existing coverage, at your discretion.
***Loan conditions may apply. See your specific plan and cash-value for details.
by Rudy Pino, FICF | Assistant Sales and Marketing Manager
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Call 877-935-2467 to speak with a Western Fraternal Life Representative.