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Now Might Be the Best Time for Millennials to Buy Life Insurance

Now Might Be the Best Time for Millennials to Buy Life Insurance

Brittney BurgettBrittney Burgett Communications Director, Haven Life

If you want to know the future of the economy, just ask a Millennial.

This generation, born in the 1980s and 1990s, has transformed the expectation of how and why we buy certain products. With a preference for digital services, Millennials have influenced the business models of many companies – new and old, which are adjusting to accommodate the preferences of this generation.

If you, like me, are in this age group, you probably remember the days of dial-up Internet and landlines, which has now been transformed to smartphones and gigabit Internet speeds that support an array of on-demand services. You’ve swapped brick and mortar stores, taxis and banks for the likes of Amazon, Lyft, and online-only financial management.

So when you’re getting married and having a child, and it’s time to buy life insurance, don’t you expect technology to be there to help you find and purchase the right policy?

Until recently, buying affordable, high-quality life insurance coverage was impossible to do online. A medically underwritten term policy – which is usually the better, more affordable option for healthy young parents – could not be purchased without meeting with an agent, filling out paper applications, taking a medical exam and then waiting several weeks to hear back about your coverage eligibility and final rate.

Now, the process of buying life insurance for your family and peace of mind for yourself has caught up with the rest of the Millennial-driven economy. Choosing a policy and purchasing it is now simple, transparent and painless – as we expect all our digital services (both larger and small) to be.

Change is Constant, and Life Insurance is a Must, For Many Millennials

In 2016 the Millennial generation surpassed the Baby Boomers as the nation’s largest generation. Currently, Millennials span several stages of life, from first-year college students to young adults, to established professionals in their mid-30s.

Despite the fact that Millennials are charged with delaying life milestones like buying a home, marriage, and children until later, we’re in a stage of our lives where change is imminent, constant and financial responsibilities are unavoidable.

Many Millennials (about 9,000 per day, but who’s counting?) are now having children, which means our generation is reaching a time in our lives when there are people who truly rely on us financially. In addition to marriage and children, there are a few other financial responsibilities Millennials are grappling with – high living expenses and student loan debt to name a few. It’s a lot for anyone to manage.

Now, consider the following: what would happen to your children or partner if you were suddenly no longer around? Would he or she be able to continue paying the day-to-day bills? Would your partner be able to afford childcare and other family-related expenses? Having a backup plan is important. Term life insurance is a backup plan.

Life insurance offers an affordable way to help financially protect your loved ones from the unexpected. A policy serves as a safety net for your spouse and children so that if you were to pass away, they would have the financial means to maintain as much normalcy as possible.

Life Insurance Coverage is Affordable for Millennials

Term life insurance is one of the most affordable life insurance options out there. As the name implies, coverage does not last a lifetime but lasts for specific term lengths – 10, 15, 20 or 30 years. This helps keep pricing very affordable.

When you buy term coverage, the intention is for it to last you through significant life moments – until your mortgage is paid off, until your kids are out of college or until you and your partner have substantial financial assets.

Most people tend to overestimate how much term life insurance costs. In a recent study by LIMRA, Millennials surveyed guessed that a 20-year, $250,000 policy would cost $600 per year.

For many in this generation, who are young and healthy, a policy costs significantly less. Case in point, a healthy 30-year-old man could buy a 20-year, $500,000 policy starting at $20.17 per month or less than $245 per year. That’s less than a couple of lunches out per week.

When purchased while you’re still young and healthy, term life insurance is a very affordable way to protect a growing family financially.

Choosing a Life Insurance Policy and Provider

There are plenty of tools online to help you determine how much life insurance you need and how much a policy will cost. In a self-directed world, we find that most people — especially Millennials — prefer to do their research online and seek recommendations from smart friends and family members.

Many experts recommend having coverage that’s 5 to 10 times your annual income. For example, if you’re making $75,000 per year and are married with children, you may want to consider coverage somewhere between $375,000 and $750,0000. This recommended amount could fluctuate, however, depending on how much debt or savings you currently have. A life insurance calculator can factor in your income, debts and family structure to recommend coverage that will adequately protect your family.

Once you determine how much coverage you need, it’s time to choose a policy and insurer. The price of coverage is pretty competitive across highly rated insurers – most only differing by a couple of dollars here or there per month. Insurer ratings matter, though, because it’s an indication of the financial strength and claims-paying ability of the company that’s financially protecting your loved ones. With Haven Life, our Haven Term policy is issued by MassMutual, an A++ rated company from A.M. Best.* That’s the highest rating you can get from A.M. Best.

One of the most significant differentiators between life insurers and life insurance agencies right now isn’t really price or rating, though. It’s the customer experience. With many insurance companies, you still can’t buy a term life insurance policy entirely online.

At Haven Life, we’ve completely rethought the life insurance buying experience to be one that’s actually simple. You can apply entirely online and receive an instant approval decision for your life insurance policy. No paper forms. No phone calls. No waiting several weeks for an answer. In fact, you can start now with a free, quick estimate for much your life insurance coverage might be.

Taking a Life Insurance Medical Exam

A medically underwritten term life insurance policy normally requires a medical exam. The paramed exam helps insurers verify the information submitted on your application and to determine how much your premium should be. If you’re healthy, you benefit by paying a lower rate.

Now it’s possible for some, qualified life insurance buyers to get quality coverage without the exam. If you qualify for Haven Life’s InstantTerm process, a medical exam will not be needed. That’s because Haven Life uses modern technology to holistically analyze and underwrite some applicants in real-time without always requiring a medical exam. And best of all, you don’t have to pay more for the extra convenience.

If you don’t qualify for the InstantTerm process, then a medical exam will need to be scheduled within the next 90 days. Most applicants are covered from the time they receive a decision until the medical exam results are back. A medical exam can be taken at your convenience from your work, home or the doctor’s office, and typically only takes about 20 minutes to complete

A Digital Way for Millennials to Get Some Peace of Mind

Millennials are a generation who want the very best for their growing families. And, part of securing the very best is having high-quality life insurance coverage to help financially protect their loved ones.

Thanks to modern technology, buying life insurance is easier than ever for husbands, wives, moms, and dads who are seeking an affordable policy to safeguard their families.

It’s possible to have coverage in place today, which means, you, like many other Millennials, can sleep well knowing that if the worst were to happen, your family would be provided for thanks to sound planning. Buying life insurance is a smart decision for anybody. If you’re young and healthy, it’s even smarter.

Protecting your family with life insurance is more affordable than you think. Get your free quote

*Rating is as of July 15, 2017, and is subject to change. MassMutual has also received high ratings from other rating agencies.

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