Do millennials really need life insurance?
National Account Manager for Protection Craig Bryce examines why more millennials don’t choose life cover, and why this makes it even more important to have the protection conversation
I read a recent study of millennial parents which revealed some startling statistics and attitudes towards life cover. It showed that three quarters of young parents have no life insurance in place to cover them should the worst happen. I was also surprised to hear that 67% said that they simply did not have time to go through their options.
Looking at these figures, I think it is clear more needs to be done by the industry to help young people protect themselves against worst case scenarios.
So why don’t more millennial parents have it?
It seems that generally younger parents will always feel that life insurance is less of a priority than older generations, simply because they are less likely to die anytime soon. The survey revealed that millennials would rather spend their funds on new technology and experiences, than on insurance against future events.
But I wasn’t surprised to hear that many millennials assumed that life insurance was simply too expensive to consider, with 80% prioritising other financial needs, such as living expenses, recreational expenses, and saving money for the future. The cost of life cover is a common misconception among the public and one that has prevailed across the generations.
But life stages, such as buying a house, are being reached much later by millennials. This means that many young parents are left vulnerable while renting, without having had the life insurance conversation with a mortgage adviser.
Why is life cover still so important for millennials?
As you will know, one of the main reasons millennials should consider life insurance is their age. Life insurance is often cheaper when they are younger, which means putting it off only increases the cost, and taking advantage now will very likely save them money on their premiums.
If your millennial clients have dependents and people that rely on them, you can help them consider what would happen if their income was suddenly taken out of the picture. Would they be able to live comfortably? Would they have the same lifestyle? These are just some of the questions that form an important part of helping more millennials understand the importance of life cover.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.