Like the generations before them, millennial employees are entering new life stages. They’re getting married, buying houses, having kids and growing their careers. All those activities come with high-priority expenses, like weddings, mortgages, child-rearing costs and retirement accounts contributions. On top of new expenses, many millennials carry lingering debt from student loans, credit cards and medical bills.
As a millennial, life insurance premiums can be tough to fit into the budget given these converging responsibilities. Is life insurance really necessary?
Analyzing a Generation With Growing Responsibilities
The same life changes and responsibilities that make young people defer life insurance are the very reasons they need that protection in the first place. As millennials pay off or take on new debts, an unexpected accident could put the balances squarely on the people they leave behind.
The risks aren’t only for married millennials, either: The 27-year-old whose parents cosigned so they could buy their first house could unknowingly saddle them with that mortgage later.
Here are the facts about millennial employees:
- Roughly half don’t have a life insurance policy.
- Among those who do have a policy, many still don’t have enough protection to cover arrangements and debts after death.
Using the Benefits of Youth to Lock in Life Insurance
Many healthy people under age 35 can buy a flat-rate term life insurance policy for about $30 a month, which is typically much more affordable than alternatives, such as a whole life policy.
Locking in a low rate can also act as motivation to maintain the policy through its term, since their premiums will only increase as they age.
Attracting Good Talent With Good Benefits
Making life insurance part of your whole benefits strategy is an important part of helping to attract or retain good workers. In addition to employer-funded life insurance plans, there are voluntary life insurance plans, which allow employers to offer life coverage to employees via payroll deduction.
Educating employees on the benefits of life insurance is easier than ever. With materials, articles, newsletters, links to calculators and benefits reviews on hand, you can show them why they still need protection against the unlikely and unthinkable. A good source for educational information is lifehappens.org, or you can ask your insurance carrier for resources.
Also, don’t forget the generation following millennials: Gen Z. They’re more interested in practicalities than ever. If you bolster your benefits offerings with pragmatic options now, you’ll likely reap the benefits of those changes for years to come.