Less than half of millennials have life insurance

Less than half of millennials have life insurance, according to a survey conducted by insurance comparison website Insuranks. Of the 1,000 respondents born between 1981 and 1996, only 47% said they had a policy.

That’s not to say Millennials aren’t interested in life insurance: in fact, 48% of those without coverage said they want it. The main obstacle they cited was cost, with 66% saying premiums were too expensive. Nearly a third (29%) said they were overwhelmed by the complexity involved in choosing a policy.

Only 36% say they don’t have life insurance because they don’t have a family to support.

One in two married millennials surveyed said they would experience financial hardship within six months if their spouse died. One in six said it would only take a month.

Below, CNBC Select looks at why life insurance can be essential — even for younger people — and how to find affordable coverage.

Millennials are at a stage in life where they may be planning or have already started a family. If you have people who are financially dependent on you, such as a spouse or children, leaving them without support is a serious risk. An adequate life insurance policy can cover outstanding debts and provide replacement income.

Even if you have no family, insurance can pay for your funeral. It’s actually the leading reason millennials buy life insurance, according to the study. With funerals costing over $8,000 on average, this can be a real blow to those you leave behind.

Life insurance is also cheaper and easier to get when you’re younger. While many factors go into determining premiums, age plays a significant role. It may seem like a challenge to add another bill to your budget, but it will save you money in the long run.

Life insurance doesn’t have to be expensive. If you’re looking for affordable coverage, consider term life insurance, which covers you for a set period — usually between 10 and 30 years. If you die while your policy is active, your family receives a death benefit.

This type of cover is usually significantly cheaper than whole life insurance, which is TK for as long as you live. A 30-year-old non-smoker will pay an average of $26 per month for a 20-year term life policy with a $500,000 payout, according to Policygenius, or $440 a month for whole life insurance with the same payout.

For those looking for an inexpensive term life policy, CNBC Select recommends Haven Life Insurance. The Haven Term policy offers coverage up to $3 million and is available to those up to age 64. The Haven Simple policy, meanwhile, is for individuals between the ages of 20 and 55 and offers coverage from $25,000 to $1 million. The policy can be purchased online without a medical examination.

Haven Life Insurance

  • price

    The best way to estimate your costs is to request a quote

  • App available

  • Highlights in politics

    Haven Life offers coverage issued by MassMutual and CM Life Insurance Company, a company highly rated for customer satisfaction and financial security. Offers term insurance with and without medical examination.

Guardian receives high marks for financial stability and offers several types of policies, including term, comprehensive and universal. You can even convert a term insurance policy to whole life later.

Guardian Life Insurance.

  • price

    The best way to estimate your costs is to request a quote

  • App available

  • Highlights in politics

    Guardian offers a variety of policies including term, whole and universal. It also offers term policies that can be converted into whole or universal life policies along with strong financial strength ratings.

The best way to get a good deal is to shop around and collect multiple offers. And if anything about the policy terms is unclear, don’t hesitate to ask the insurance agent. Do your own research so you can make a more informed decision.

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More than half of millennials say they don’t have life insurance, with many citing cost as the culprit. But the right policy can save you stress and financial hardship in the long run.

At CNBC Select, our mission is to provide our readers with high-quality journalistic service and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. Although CNBC Select earns a commission from affiliate partners for many offers and links, we create all of our content without input from our sales team or outside third parties, and we pride ourselves on our journalistic standards and ethics.

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Editorial Note: The opinions, analysis, reviews, or recommendations expressed in this article are solely those of the editorial staff of Select and have not been reviewed, endorsed, or otherwise endorsed by any third party.

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