CHICAGO, January 24, 2023 (Newswire.com) - Navigating inflation is seemingly an impossible task. With recommendations from experts and well-meaning loved ones alike, the tips to follow can be overwhelming for millennials. One tip that is often discussed during times of uncertainty is life insurance.
An increasing number of people in the United States, especially young Americans, have taken a higher interest in life insurance over the past year. About 31% of consumers say that the coronavirus pandemic has made them more likely to buy life insurance within the next year, according to the 2021 Insurance Barometer Study from nonprofit industry trade associations LIMRA and Life Happens.
Opting for another expense during a period of inflation can seem counter-productive. However, there are four important reasons why every millennial should consider life insurance - especially life insurance with no medical exam - even during inflation.
1. Create a Stable Investment
These two terms can seem unrelated at large, but the truth is that life insurance and inflation are closely intertwined. Inflation comes with a host of uncertainty. When purchasing a life insurance policy, the primary benefit is that the policy is with a person for a predetermined amount of time and cannot go anywhere. Unlike other financial tools such as stocks that can dissipate during economic shifts, life insurance can be a solid financial tool.
So while many things change, life insurance can remain a safety net. When it comes to why individuals purchase life insurance, the three top reasons are to cover burial and final expenses, help replace lost wages or income of a wage earner, and transfer wealth or leave an inheritance, according to LIMRA. These are all reasons anyone should purchase life insurance, but more specifically, here are additional reasons why millennials will want to buy.
2. Secure Lower Rates
When inflation occurs, prices rise for just about everything including gas and groceries. Because the economy plays a big role in determining interest rates, a high-inflation model may also result in higher rates all around.
With ever-changing economic conditions - consider purchasing insurance as soon as possible to avoid battling potentially higher rates a month or even a year from now. Remember that purchasing a life insurance policy enables the policyholder to lock in the rate for a term or one's entire life.
3. Purchasing Early = More Money
The earlier a policyholder purchases life insurance, the more money they can grow in a cash value component over time. The longer one has a policy, the better it can pace with things like inflation. On the other hand, purchasing later in life can mean less growth and less accessible cash in the future. Some life insurance companies may offer an inflation rider add-on option to boost the policy value.
4. Purchasing Young Is Easier
Above all else, buying a life insurance policy when young is easier than it will be in the future. This is because life insurance companies want to take on low-risk customers, which most young individuals are. Not only can this mean avoiding tedious tasks like medical exams, but it also means lower prices. When it comes to inflation, most are trying to cut costs wherever possible and while purchasing life insurance is an additional expense, it is unlikely to ever be as affordable as it is today.
How to Choose the Right Life Insurance Policy
When it comes to choosing the right life insurance policy, it's important to follow a few simple steps.
Compare Life Insurance Companies
One of the best things to do in order to find the life insurance company with the best policy for your needs is to dedicate time to researching. Compare companies and see which offers the necessary tools needed for financial soundness.
Consider Coverage Needs
Don't get stuck paying a premium on a policy that doesn't cover lifestyle needs. Instead, be sure to calculate just how much is necessary to protect the livelihood of loved ones.
To Sum Things Up
As educators about the importance of life insurance, we know that when people understand the need for life insurance and purchase it, they can take control of one important aspect of their financial futures.
Fidelity Life offers no medical life insurance, and life insurance shoppers can discuss their options with an agent or shop for online life insurance quotes. Shoppers just need to answer a few questions before being matched with a policy that suits their needs.
An applicant provides information to help match them with a life insurance policy that meets their needs. The applicant can select the policy and then get a quote online or with the help of a licensed agent. Fidelity Life will then guide the applicant through the application and purchasing process.
Source: Fidelity Life