Millennials tend to overestimate the cost of a life insurance policy. With a little online research, you can get quotes and compare the premiums that suit your budget. What’s more, you can now purchase term life insurance online at a lower cost.
While it’s true that we are spoilt for choices when it comes to buying life insurance, it all boils down to your affordability and needs. For most people, a term life insurance policy may be the best choice as it offers straightforward, customizable and the least expensive protection.
Just because you’re young, does not mean accidents won’t happen. Life insurance gives you coverage against possible critical illnesses, disability, and even accidental death. Another reason why everyone should consider getting a life or term life insurance as early as possible is because the policy will cost more as you age, as you’re more likely to develop health issues. So lock one in while you are still young, fit and healthy.
Sure, it is important to have savings, but you may not have time to save up enough if you develop a critical illness in your mid-30s for example. Opt for a term life insurance if you want to have a cheaper insurance policy that would still give you adequate coverage. Besides, you never know when you might use up your savings for something else - travel, a new car, or even your wedding.
Unless you expect to be working at the same company for the rest of your life, this thinking is highly unrealistic. You will be vulnerable as soon as you leave the company or lose your job. There’s also the possibility that your employee life insurance payout may be significantly low. It’s unlikely to be enough to support your family when you’re no longer around to provide for them.