Millennials may be thinking that they don't need to start thinking about life insurance yet. But there are many benefits to getting life insurance sooner rather than later.
Millennials that look at life insurance quotes today might like what they see now more than if they wait a few years. That's because life insurance rates tend to increase with age, and while people can take out a life insurance policy at any time in their lives, now is as good a time as any to find the right plan. Here are three things millennials should know about life insurance:
1. Term life insurance is good for covering periods of the policyholder's life
Term life insurance is a temporary policy, with the period of coverage predetermined by the type of plan people choose. Typically, people have the option to choose between a 10-, 15-, 20-, or 30-year plan. This means they could think about life insurance coverage in terms of covering periods of their life, such as the early stages of starting a family, providing for children until they're finished college, or paying off the mortgage of their home.
2. Health matters
The healthier someone is, the better life insurance rates they can expect. Since younger people tend to be in better health, getting a life insurance policy at a younger age can mean they may qualify for better terms and pay lower premiums.
Make sure to be as honest and truthful as possible on any medical evaluation forms. For those that have a disability or chronic illness such as type one diabetes, there may be special life insurance plans available.
People may be asked to take a health exam for some life insurance policies. This would likely be very similar to a routine physical or checkup, and the cost of the exam may be covered by the life insurance company.
3. Life insurance protects co-signers and business partners
Many people have co-signers on debts, such as student loans. But if someone with student debt dies, their co-signer can become responsible for the outstanding debt. Life insurance can help borrowers protect their co-singers from facing financial hardship.
Similarly, anyone who shares ownership of a business should have a life insurance policy to protect their partners. Even if the business doesn't have a significant amount of debt, it's good to ensure that all partners, employees, vendors, and customers will be able to continue to rely on the business or have time to transition.
The bottom line
Getting a life insurance plan may seem daunting, but not to worry. By doing research and considering individual needs, millennials can find out what policy would fit best with their financial plan. And for those that need a hand with navigation, be sure to speak with a financial advisor about what life insurance plan could work best.
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Contact: carolina.darbellesv@iquanti.com
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Original Source: Prudential Financial: 3 Things Every Millennial Needs to Know About Life Insurance
