The world, for as old as it is, has seen billions of human beings come and go. There have been too many generations to count, and there are currently six generations still alive today: The Greatest Generation, The Silent Generation, Baby Boomers, Generation X, Millennials, and Generation Z. And now, millennials are either in their prime for purchasing life insurance, or almost at the point when they should be at least thinking about it. And yet, some statistics are showing that most millennials are still looking at life insurance the wrong way.
The millennial generation is comprised of approximately 80 million Americans, the largest generation in history. And although they are large in number, they are low on life insurance. According to a study from LIMRA (Life Insurance Management and Research Association), millennials are, by far, the generation that has the least amount of health insurance. The study shows that, of the millennials surveyed, a whopping 34 percent do not have health insurance, compared to previous generations whose numbers never even broke 30 percent. To make matters worse, less than 20 percent of millennials will actually purchase life insurance.
That means that there are tens of millions of millennials out in the country who, potentially, have no backup plan for their untimely passing. While life insurance can be an incredibly sensitive issue to touch upon, it is absolutely imperative. Unfortunately, studies suggest that younger Americans wouldn’t necessarily agree, with 29 percent of millennials surveyed choosing to save their money for a vacation as opposed to purchasing life insurance. Another 60 percent believe that other expenses, such as cell phone bills, student loans, and Internet access are more important than life insurance. And, to an extent, they are right; those are necessary aspects of modern life, but the importance of life insurance is being grossly understated.
So many millennials believe that life insurance is not something to be concerned about until old age, but that couldn’t be further from the truth. Youth that do not have life insurance are typically focused on themselves and ensuring that their careers are forged and their bills are paid, but they are forgetting that life insurance runs deeper than oneself. Life insurance ensures that those you care for are protected and taken care of in the sudden event of your passing. If you have children or partners or even parents who rely on you for a steady income, your passing could leave them in a bind.
And insurance companies—and the industry in general—have noticed this trend, and have tried to capitalize by appealing to younger demographics. New startups like Fabric and Ladder Life look to appeal to millennials with simplicity and value. They incorporate contemporary, modern designs and user interfaces with instant setup and a hassle-free experience. Time will tell whether or not these new life insurance startups will endure.
Unfortunately, this current trend of life insurance mindset that is shared by millennials does not bode well for future generations. Regardless, whether you are a millennial or older, if you do not have life insurance, make sure that you at least consider purchasing a policy. It is far more important than it may seem.