Most millennials, when quizzed about their likelihood to purchase life insurance, report that they are unlikely to ever do so. However, if you have financial obligations or dependents, it’s best to purchase a life insurance policy at the earliest. Keep in mind that life insurance tends to get more expensive the older you get. So, it is, in fact, great to purchase a life insurance policy in your 20s.
What Type of Life Insurance Policy Should You Purchase?
There are broadly two types of life insurance policies – whole life insurance and term life insurance. Whole life insurance policies accumulate cash value and remain in effect for the duration of your life. The premium you pay for a whole life insurance policy is invested, and so you receive a payout. Whole life insurance is more expensive in comparison to term insurance.
Term insurance policies offer basic life insurance coverage, usually for a period between 5 to 30 years, to the policyholder. If the policyholder succumbs to an untimely death during the policy term, a payout is given to the nominee. Unlike whole life insurance plans, the policyholder doesn’t receive a payout during or after the policy tenure. The key benefit of term insurance policies is that they are cost-effective.
Tips For Millenials Looking to Purchase Life Insurance
Opt For Sufficient Coverage: When purchasing life insurance, it is vital to opt for adequate coverage. While it may be tempting to buy a policy with the lowest premium, keep in mind that it may not benefit your dependents financially.
Shop Around: The next step is to shop around for a policy. To purchase a policy with adequate coverage at the best possible rate, it is necessary to compare the premiums quoted by different life insurance providers. It is important to find a policy that offers the coverage you require at a premium that is still affordable.
Check The Reputation Of The Company: Purchasing a life insurance policy helps you ensure that your loved ones are financially protected when you are no longer around. Given this, it is important to check the reputation of the insurance provider before you buy a policy from them. Make sure to read reviews left by customers online and assess if you can reach out to the company for assistance, without too much effort.
Check For Discounts: Before you purchase a policy, make sure to ask your insurance provider if you may be eligible for any discounts. If you maintain an active lifestyle and don’t smoke, you may be eligible for discounts.
Inquire About Riders: While the coverage offered by a life insurance policy is more or less fixed, you can opt for additional riders to customize the coverage. So, make sure to ask your insurance company about the various riders that you may be able to purchase.
Insurance shopping is no longer the tedious process it once used to be. With several companies giving customers the option of purchasing insurance online, you can have your policy in place in no time.