Category Archives: Millennials

Millennials Focus on College not Insurance

By | Educate, FAQ, Millennials, Uncategorized | No Comments

Millennials

As the largest and most educated generation, you would expect that millennials would take insurance coverage seriously. Sadly, studies reveal that one in four adults between 18 years to 29 years do not have health insurance. Furthermore, millennials are less likely to take up other forms of insurance like auto, life, home, and renters. As the most educated generation, millennials need to learn the importance of having insurance.

According to research and interviews surveyed among millennials, it was found that millennials view insurance as an unnecessary expense. To them, they don’t need it and won’t need it any time soon. To the older generation, they appear as a generation that is subservient of the punches and curve balls that life throws at people each day.

While insurance does not inspire excitement, its impact on one’s life is virtually unrivaled. At some point in life, an individual will experience misfortunes such as theft, flooded home, fire, car accident, or others. Misfortunes are not planned and since they occur without any prior confirmation, it is wise to protect yourself.

Insurance provides peace of mind especially when faced with difficult situations. It can help you to settle financial problems brought about by misfortunes. Furthermore, getting insurance does not mean that you are paranoid, it means you are smart.

Here is an insurance checklist all millennials graduating college should keep in mind.

1. Research different types of insurance products

As a millennial, the first thing you need to do is learn about the different types of insurance products available in the market. There are those insurance products that have been around for a long time for example car, home, renters, life, and health insurance.

Today, rider share services like Uber and Lyft have offered millennials job opportunities but what many don’t know is that your personal car insurance does not cover commercial use and there is an insurance gap. It is important to learn more about comprehensive car insurance, smartphone protection plan, travel insurance and others. What are their pros and cons? What do they cover? Should millennials buy life insurance? This will help you to stay informed.

While researching, it is important to learn the terms and conditions, the premium rates charged for different levels of insurance products, and the best insurance companies.

2. Itemize your expenses

It is wise to take time and learn what you want and what you need. Today, millennials are faced with tough decisions when it comes to spending. Many will opt to order in rather than shop at a grocery store and prepare meals at home. Others will opt to own a car yet they cannot afford to maintain it properly. In order to plan your life, you need to itemize your expenses.

You can divide your expenses in three categories: ongoing, immediate and future. Examples of immediate expenses include mortgage, uncovered medical expenses, funeral costs, car loans, credit card debt, taxes and estate settlement costs.

Examples of ongoing expenses include food, rent, utilities, transportation, health care and clothing. Future expenses include retirement and insurance. If your ongoing and immediate expenses are more than your income, then it’s time to spend wisely. Take a bus or subway as the travel insurance costs are less, cook more instead of eating out and pay off your credit card debt to improve your credit score.

3. Talk with an experienced insurance professional

While your parents and older siblings have interacted with insurance brokers and have covered themselves with 2 or more insurance products, they don’t count. Millennials need to learn how to identify a good insurance company within your area. Walk in and make an appointment to speak with an experienced professional.

It is important to have a list of questions prepared early to allow for a constructive interview. Furthermore, it allows you to learn more about the products they have to offer. Experienced insurance agents will always provide you with tons of useful information even helping you create a customized insurance plan which covers important aspects of your life. This will not only help to ensure you are protected but it will save you money.

4. Find where to buy insurance

Today, there are several options of buying insurance not only health insurance but car, travel, smartphone protection plan, renters, home, and life insurance among others. If you are looking for health insurance providers, you can always start with the government health exchange or state exchange.

Millennials can also consult private companies. Doing so helps you to sample the different plans on offer and select one that fits your lifestyle. What you need to know is that when it comes to insurance, finding the best deals on premium should not be your goal but the best plan that fits you. Look at the options and support on offer too.

5. Read and re-read the fine print

Now that you have learned all about the different types of insurance products, their options and the market places where you can purchase them, it’s time to pick a plan. Once you have selected a plan that fits your lifestyle, you will be given forms to fill.

While millennials are said to be the largest educated generation, when it comes to contracts, many do not take time to read the fine print carefully. Scanning the documents quickly will result in you missing a key detail(s). This one detail can result in you not being compensated or result in you not being covered for something.

So, to avoid such mishaps, millennials should take their time to read and re-read the fine print. If you don’t understand what some phrases mean, consult an expert within or outside the insurance company. Having a better understanding of what you are getting into will save you a lot of money now and in the future.

Congratulations!

You have gone through the insurance checklist every millennial graduating college needs to know finally picking up a plan that fits their lifestyle. At this point, you need to know that you have added a new expense in your life – insurance premium. You need to keep up with the payments just like you do with your college loan, credit card payments, rent and other utilities. Not making the payments early will result in you not being covered and you may end up being penalized too.

Just a recap of the insurance checklist for millennials – start by learning more about different insurance products, itemize your expenses, consult an experienced insurance professional, learn where to buy insurance, select the right plan that fits your lifestyle and re-read the fine print before signing on the dotted line. It’s time to let go off the bullet proof attitude because misfortunes can occur at any time. Smart thinking will protect you.

Life Insurance and its Purpose for Millennials

By | Educate, FAQ, Life Insurance, Millennials | No Comments

Life Insurance for Millennials- Brooks and Stafford

(5 minute read)

Millennials often ask the question, “What is life insurance and do I need it?”

As a millennial myself, I can confidently say that life insurance can be beneficial for young adults.

Firstly, it is important to understand what life insurance is and how it can benefit you.

What is life insurance?

Life insurance is a contract with an insurer (insurance company) that pays out a lump sum of money (death benefit) to beneficiaries after the person insured passes away.

For example, a man has a wife and two kids. His wife is a stay at home mom that depends on her husband financially. The kids are still too young to work and depend on him financially as well. The husband passes away (with life insurance).

Not only have they lost a loved one, but they also have to pay the costs associated with the funeral and find a way to make an income to make up for his loss.

Since there was a life insurance policy in place, the funeral expenses are covered and the family continues to receive the same income as they would as if the father/husband were still alive.

This example proves that:

  1. Life insurance is a safety net.
  2. A person can still provide for their loved ones after he or she passes away if they prepare properly.

In the example above, the dependents are the kids and wife. The money they receive after the man’s death is the death benefit.

What are the different types of life insurance?

There are two types of life insurance policies: a term life insurance policy and a permanent life insurance policy.

A term policy is purchased for a period of time.

This type of policy would only be lump sum of money (death benefit) paid out to your dependents if you were to pass away during the term of the policy.

Term policies are usually sold for 5,10, 15,…30 years.

These are called level terms and are one of the most common types of term insurance. However, there are more types of term life insurance.

Term insurance can be inexpensive, but once the policy ends so does your coverage.

Permanent life insurance lasts your whole life and has a saving component as well (the “Cash Value Component” section in this article describes this nicely.)

Due to both of those reasons, expect to pay higher premiums  for a longer period of time.

To learn more about which option is best for you by consulting with experienced professionals at this Cleveland Insurance Agency.

Why would someone consider life insurance at a young age?

1. Dependents will be covered financially if you were to die. (Yes, it is possible to have dependents at a young age)

Consider a spouse, girlfriend/boyfriend, children, parents, grandparents, or anyone else that depends on you financially.

If anyone depends on you, you should be considering life insurance.

Also, it is very common for a millennial to graduate college with a significant amount of student loans.

You might be responsible for these loans or you might have a c0-signer (like a parent or guardian) helping you out.

God forbid, if anything were to happen to you, your co-signer would be responsible for any unpaid student loans. A life insurance policy would help pay off this financial burden.

2. Life insurance is less expensive at a young age (when your healthy).

Many young people consider themselves invincible until something bad happens to their health.

If you wait to buy life insurance when you are unhealthy, expect to pay higher premiums.

Avoid this problem, by purchasing life insurance at a time when you are healthy and expect to pay relatively low premiums.

3. You can tell your friends you are saving for the future.

The Cash Value component of permanent life insurance forces you to save for your future.

This helps people at a young age to generate positive money habits. Check out how much money you can save through this life insurance calculator.

Many millennials are known to spend their money on short-term products that do not serve a long term purpose.

Be an outlier and make saving for your future a priority. Permanent life insurance will help hold you accountable.

4. Be financially independent by being responsible for all your expenses (including your funeral expenses).

It says a lot about your character if you make the decision to cover your funeral expenses as well.

5. Be covered all the time.

Some jobs offer life insurance benefits during the on boarding process of a new employee.

However, in most cases you will not have this coverage follow you if you were to switch jobs (which is starting become the new norm).

Having your own life insurance will follow you anywhere and allow you to be covered all the time.

Millennials and Life Insurance

In conclusion, millennials are perfect candidates for life insurance if you have dependents and want to improve your saving habits.

If you are a single person with no one depending on you financially and have awesome saving habits, you may not actually need life insurance unlike auto insurance (find out 5 easy ways to save money on auto insurance).

However, a term policy could be a great low commitment and inexpensive option for the time being.

Regardless of what option you are considering, always make sure to get a quote from multiple companies.

Life insurance is simply a safety net, to ensure that funds will be in place when you are no longer here.

If you are still unsure about what policy is right for you or want clarification on terminology, contact a trusted Cleveland Insurance Agency that has been around since 1849.

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