The fact is, life insurance matters, no matter where you are in life. But it’s particularly important for millennial families with young children. Recent studies show nearly half of younger couples with children had life insurance, but that the majority of these couples purchased their policy within the last two years.¹ 2020’s COVID-19 pandemic only increased the interest in life insurance coverage and served as a trigger event for people to apply for or increase coverage.¹

Without sufficient life insurance coverage, your family, your most important asset, may suffer from financial hardship should you pass away. Dealing with grief at any stage of your life is hard, but dealing with financial stress on top of grief can make it that much harder. Proper coverage can help alleviate the financial stress.  

Why life insurance is important for young parents

Caring for children’s basic needs — like food, clothing, and shelter — gets more expensive with each passing year. Add to that the costs of daycare and schooling.

Life insurance can help pay for these expenses, perhaps even paying off a mortgage or covering your child’s education in its entirety.

Most importantly, life insurance can help your family maintain its current lifestyle during emotionally hard times. You don’t want your loved ones to worry about financial issues too.

Steps to take to get life insurance

Your work might offer free life insurance. If it does, take advantage of it. Just note that it’s probably not going to be enough coverage for your family’s needs. Group life insurance amounts vary by employer and may be low. Also, if you leave your employer, this insurance doesn’t usually go with you to your next job. So, you’ll need additional insurance to subsidize it.⁶

Look into life insurance. You might be able to buy it from your employer who has already taken the time to research carriers and products. And you might not need to supply your medical information, if you’re a new employee.⁵ However, given your young age, you might find less expensive coverage on your own.

Life insurance is an important investment in your family and you want to be sure you’re getting a policy that serves your needs. So, don’t be afraid to talk to a financial professional — in person or over the phone — to help you understand what you need to do today for your family, so you don’t have to worry about tomorrow.