Money may not guarantee happiness, but it does guarantee a safe and secure future for your family. If there is one thing this pandemic has highlighted is that we know not what the future will hold, so we need to make smart investments to ensure we are equipped with the right resources to get through whatever the future may hold. For millennials, life insurance may very well be the most important investment at this stage.
Purchasing life insurance may sound like a huge commitment to make, and it is. However, this is one long-term commitment that pays back in full, all the time and money you invest in it, provided you made the right investment decisions. Here, we bring you a guide to buying life insurance as a millennial, so you know what you should be searching for.
What Are Your Coverage Requirements?
Life insurance technically covers the deceased funeral expenses, pay off any debts on the house, and replace household income for a set period. The amount for all these expenses is paid to the deceased policyholder’s beneficiaries in the form of a lump-sum amount if the policyholder passes away while the policy is in effect.
When purchasing your policy, you may want to sit down with your advisor to identify your family’s needs. Take into account future expenses, including mortgage payments, tuition fees for your children, and retirement funds for your spouse.
While we all want to ensure our family lives as comfortably as possible, it may cost a little too much to bear financially. That is where you will have to take into account your budget. You do not want to end up overtaxing yourself financially now so that you may secure a stable future. Try to keep a balance between the two.
Type of Coverage
There are three main types of life insurance you can opt for, temporary or term, whole, and universal life insurance. In term life insurance, you pay a set amount of premium every month for a set period, and your beneficiaries get the benefits if you pass away during the set period.
Whole life insurance operates similarly to term insurance. However, here there is no set period, and you continue to pay the premium until you die, after which your beneficiaries receive the lump-sum amount. Here, you may have the option to withdraw some money a little earlier, which will then reduce the amount your beneficiaries receive after your death.
Universal life insurance, too, has no set period, but it offers a lot more flexibility to the policyholder. You can take out money, borrow some and pay it back as well. However, here you need to keep in mind that outstanding loan payments can significantly decrease the amount of money your beneficiaries receive after your death.
How Can We Help?
As we said earlier, purchasing a life insurance policy as a millennial is a challenging task. Trying to find a policy that meets your coverage needs and fits within your budget can prove very challenging. However, you need not worry as we at Renee Jackson Insurance Agency can guide you through the entire process. We are independent agents with years of experience in the insurance industry. We can help you assess your coverage needs, determine the type of life insurance policy that will be best for you, and find one that fits within your budget and fulfills your requirements.
Contact us today for a consultation.