Millennials have plenty on their plate when it comes to financial #adulting. From paying off student debt and managing day-to-day expenses to buying a house and starting a family, the new financial responsibilities can seem daunting.
A recent survey by TD revealed another gap in millennials’ financial picture: life insurance. The survey found more than half (55%) of millennials don’t have any life insurance, but more than a third have thought about it, especially when it comes to protecting their loved ones.
When prioritizing their financial “to-do” lists, things like paying down debt (25%) or saving for a home (21%) were most important, while life insurance came in dead last. For people starting a family – or those who already have young families or dependents – who don’t yet have life insurance, it’s important to bump it up the priority list because this is the time when financial obligations really start to increase.
The survey also found most millennials assume life insurance is best to cover one-time costs, like funeral expenses (68%), but many don’t realize it can assist with so much more. For instance, day-to-day living expenses like mortgage payments or student loans are areas where life insurance can help protect loved ones from financial pressures in the event of the unexpected. Bottom line, it’s an important part of a comprehensive financial plan.
Cost is a cup of coffee a day
Another survey finding cited cost (55%) as a top barrier to purchasing life insurance. In fact, the younger one is when buying life insurance, the less coverage will cost. And many may find it surprising that on average, the cost of life insurance breaks down to less than a cup of coffee a day over a 10-year period.
Finally, it’s important that first-time purchasers have a strong understanding of their options. To do that they’ll need to start with a complete list of financial obligations – like mortgages, debt, and whether theirs is a single or multiple-income household. With that information in pocket, they can check out online assessment resources, like the Right Fit Coverage Assessment tool, which will help calculate the type of coverage best fitted to their unique needs. And, they can also speak to an insurance advisor if they have more questions or need additional advice.
Remember, life insurance is a vital piece of the overall financial picture and will offer some peace of mind to loved ones.
Mark Hardy, Senior Manager of Direct Life & Health, TD Insurance is an insurance professional with more than 15 years of experience in the industry in a wide range of roles including Technology, Data, Strategy and Product Management. As Senior Manager of Direct Life & Health at TD Insurance, he is responsible for bringing life & health insurance solutions directly to Canadians. Mark has an MBA from the Rotman School of Business.