When you’re young and healthy, the last thing on your mind is life insurance. You’re enjoying those everyday moments - making plans on how to spend your time, not what to do if it’s cut short unexpectedly.
The fact is, life insurance matters, no matter where you are in life. But it’s particularly important for millennial families with young children. However, statistics show that millennials lack life insurance coverage.1 In fact, 75 percent of millennial parents (born between 1981 and 1998)2 do not have a personal life insurance policy.1 And some millennials (42 percent) don’t think their partner or spouse has enough life insurance.2
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
More than 80 percent of babies in 2016 were born to a millennial parent.3 These young children have a long list of expenses ahead of them. Caring for their 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. And, given the fact that you finished college not long ago, you might have a student loan that you still need to pay. Insurance can help pay it off, which may be a relief if you have a co-signer for your loan, such as your parent or spouse.4
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.