When it comes to adulting, there are a few words that come to mind that usually leave us feeling unenthused. The one we are going to talk about today, life insurance. That’s right, life insurance. As millennials, many of us have this on our to do list and never manage to get around to it.
I mean we are busy building full time careers ( some have the luxury of doing this from home courtesy of Covid-19) while running a side business, a podcast, a YouTube channel and traveling the world (with our masks of course!).
Life insurance is the last thing on our minds and is the lowest of our priorities. Well today, let’s touch on three reasons you should bump it up to the top of your list:
1. AFFORDABILITY - It is important to note that life insurance is based on several factors, the two biggest are your health and your age! The older you get, the more it will cost you. The amount of insurance we are typically able to afford is significantly higher than what it would be if waited until the AARP membership cards start rolling in.
Not only is age a factor because of price but also it is imperative to note that we are usually healthier while we are younger. This allows for not only much more affordable coverage, but access to a variety of options with more benefits.
2. FEWER DEBT & ASSETS - When calculating how much coverage you should purchase you should know like everything else..there are levels to this. (Please see our guide for levels of coverage) As you may be aware, life insurance is paid out in a lump sum to a person of your choosing, called a beneficiary.
If you have outstanding debt that could negatively impact that person(s) or organization, you want to aim to at least cover the amount of debt you owe and remove that burden from them. Fortunately, with the exception of student loans, millennials generally aren’t carrying a whole bunch of debt.
According to a survey by Northwestern Mutual, the average debt carried by a millennial is only $42,000. This is the perfect reason to look into a permanent insurance policy( insurance meant to cover you for your entire life)
3. OPPORTUNITY FUND- Given you have the proper type of life insurance, you will be granted the chance to build an opportunity fund. This Once you start a policy, you will typically have monthly payments established. Every month you make a payment, a portion of what you pay gets stashed to the side. This money is in what is known as a cash value account.
This account will build and grow over time accruing interest. In some cases, you will be fortunate enough to also receive dividends! Talk about making your money work for you. You will notice this compounding growth will accumulate into a respectable amount of money. The best part is, you will have access to this money.
Now, here is where the opportunity fund comes into play. The terms for you to access this money are heavily in your favor. For that reason, people will leverage this account for business funding, buying cars, college expenses etc. Who needs a bank for loans when you can be your own bank.? The opportunities are endless. To learn more about the details of an opportunity fund and how to start one. Schedule a call here.
