According to Money Magazine (Dan Kadlec, August 2014) Millennials (those age 18 to 29) are the most “underinsured generation” today. This group of young adults question the need for life, health, homeowners/renters or disability coverage.
Some of the factors behind this finding may be shifts in income and lifestyles. Large numbers of millennials are entering the workforce with a significant amount of student loan debt, and many are
delaying traditional adult milestones like getting married, having children and purchasing a house. Kadlec (2014) goes further in stating that the reasons they choose not to insure is that Millennials “often feel invincible when it comes to potential health or financial setbacks”. They may view their parents, family or friends as “their personal no-cost, all-purpose insurance plan”.
Reasons to Buy Insurance
Auto: Most Millennials will have car insurance if they own a car. But even if they rent or borrow one, there is a liability.
Life: In general, life insurance gets more expensive as a person ages. A 25-year-old person in good health can find a sizable six-figure term life policy for just a few hundred dollars a year. For a senior citizen, that same coverage can cost thousands more. In addition, if something were to happen any cosigners to loans (i.e parents) they would be responsible for the outstanding balances. Moreover, the average funeral costs between $6,000 and $10,000.
House: Many Millennials own a house, but if they are renting, it is prudent to consider Renter’s or Contents Insurance.
Health: Sickness nor accident know a age limit. A trip to the ER can run into $1,000 or more for a simple ailment.
*This article is for informational purposes only and is not intended to serve as medical advice. For further information, please consult a medical professional.
“Millennials often feel invincible when it comes to potential health or financial setbacks”. They may view their parents, family or friends as “their personal no-cost, all-purpose insurance plan”.