Thoughts, Prayers, and Financial Illiteracy: Millenials and Life Insurance

It can be heartwarming. You’re sipping your morning coffee, scrolling through posts, and you see a family in need of help. You add your five dollars to the pool and, for just one moment, the world seems like a better place.

There’s only one problem with that: crowdsoucing Is not a viable financial plan for life’s emergencies, and donations usually don’t cover all of a family’s needs in the event of a crisis. While the Robinhood-like notion of banding all the little guys together to make a difference seems romantic, it would be quite the opposite should you find yourself on the receiving end of the those thoughts, prayers, and five dollar bills when what you need is six months of bills paid.

The main problem is: milllenials may fall into several categories when it comes to ensuring their financial futures are secure:

  1. Know they want to be secure, but don't know how.

  2. Know how, but don't know which options to choose.

  3. Feel like they can't afford things like insurance and retirement.

GoFundMe, although is is a lovely vehicle for helping those in need, is a poor substitute for life insurance. Which brings us to the question: Do millenials understand what life insurance is? The answer is, by and large: no. Most people, generally speaking, prior to meeting with a financial advisor, generally think that life insurance is a burial coverage policy.

It is important to understand that life insurance does NOT just cover burials. It can be used for a variety of purposes in an overall financial portfolio including estate planning, emergency planning, mortgage protection, and funding specific goals.

Financial education is crucial to planning for your financial future. Especially since many millenials are self-employed and employer-sponsored insurance programs are waning, now is the time to see if you qualify for financial protection in the event that you become seriously ill or injured.

Although many millenials may think they are too young for life insurance, the fact is the policies with benefits you can actually use while you are alive and ill at prices you can afford are only available when you are somewhat younger and in generally good health. Waiting until later is not a good strategy when it comes to buying life insurance any more than buy high, sell low is a good investment strategy.

If you are interested in learning more, please book a virtual virtual meeting here.

In the coming weeks, I look forward to launching fresh content geared at helping all of us better understand how to protect our financial futures in ever-changing times.

24 views0 comments