Do Millennials Need Life Insurance?

As usual, it depends.

When you hear the word “insurance,” think protection.  You have auto and homeowners insurance to protect yourself from major damages to those assets.  You have liability insurance to protect yourself from getting sued.  So what is life insurance protecting you from?  Dying?  Of course not, since all of us will die eventually.

The purpose of life insurance is to protect your family from being financially burdened if you were to die all of a sudden.  Here are some examples of when you might need life insurance:

  • If you bought a house with someone and the mortgage payment is heavily dependent on BOTH your incomes.  If one of you were to die unexpectedly, the other person would most likely have to sell the house because they wouldn’t be able to make the payments on their own.
  • If you have dependents (young children, parents who you support financially, etc.).
  • If you have any debts you want to have paid off when you die so you don’t burden anyone else with it.

If you’re in one of the situations listed above and decide you need life insurance, there are several different types of life insurance policies you can buy ranging from Term Life (the cheapest) to Whole Life (the most expensive).  All of them have pros and cons so it’s important do your research and select the best policy for your specific situation{Beware!  Most life insurance agents will try to push Whole Life policies on you because they get the biggest commission from it!}

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2 thoughts on “Do Millennials Need Life Insurance?

  1. Pingback: Life Insurance: Permanent (Whole Life) vs. Term | Millennial Finance

  2. Pingback: Getting Term Life Insurance – Step by Step | Millennial Finance

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