CHICAGO, July 1, 2022 (Newswire.com) - A few ways millennials can create more financial growth and protection include getting term life insurance, building an emergency fund, and paying off debt. Here's what to know about why millennials desire more growth and protection.
A Business Insider article noted that because of loan debt, millennials who don't have family support are at a disadvantage when it comes to accumulating wealth. As interest rates rise, car loans and mortgages are becoming more expensive for millennials. These financial concerns, among others, explain why 38% of millennials feel financially unstable. However, millennials can follow a few financial tips to create more financial growth and protection.
Get a term life insurance policy
A term life insurance policy provides coverage for a chosen period of time. If the policyholder passes away within that time, a death benefit is paid to the beneficiary. The beneficiary can use the death benefit to help pay for final expenses, loans, mortgages, or everyday expenses. If a young family relies on one person's income, the coverage can help keep the family financially stable. Individuals who are younger and healthier, such as millennials, can usually get term life insurance at a lower cost than those who are older. For example, a 25-year-old female could get a $250,000 20-year term policy for as little as $14 a month.
Grow an emergency fund
An emergency fund is money set aside to cover financial emergencies or unexpected expenses. These circumstances include a loss of income, medical bills, and car repairs. A recent survey found that only 41% of millennials had enough savings to cover a $1,000 emergency. It's ideal for individuals to have enough to cover three to six months' expenses. A few steps millennials can take to grow their emergency fund include determining an emergency fund goal, making a budget to find more ways to save, and saving any unexpected income.
Paying off debt
An individual's debt amount has the most significant impact on their credit score. A poor credit score can negatively impact a millennial's ability to get a mortgage, buy a home, and build wealth. Some helpful tips for paying off debt include paying more than the monthly minimum, paying more than once a month, and limiting credit card spending. Implementing all these financial tips can help millennials build more financial growth and protection for the future.
The bottom line
Lincoln Financial Group released a study that found more millennials under 40 will be purchasing life insurance in the next five years. Millennials desire growth and protection because of their concerns over student loan debt and rising interest rates. Fidelity Life offers term life insurance policies either with a quote online or from a licensed agent and makes it easier for people to get coverage.
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Source: Fidelity Life