CHICAGO, July 5, 2022 (GLOBE NEWSWIRE) — A recent LIMRA study found that nearly half of millennials are now more likely to purchase life insurance due to the pandemic. Their interest was greater than that of Gen Xers and baby boomers. Millennials are also changing the life insurance game by buying life insurance online. Some policy options that best fit your needs include term life insurance. Here’s what you need to know about how millennials get life insurance and which policies are best for them.
Buy life insurance online
Millennials have gotten used to doing a lot of their shopping online. The pandemic has only led them to make more purchases online. As a result, life insurance companies are setting up their digital platforms to make it easier to find and purchase life insurance online. Millennials can get quotes from different companies without having to contact an agent. Once they’ve decided on a policy, in most cases, they can complete an online application and possibly receive same-day approval. An insurer may offer a life insurance policy that doesn’t require a medical exam, speeding up the buying process. Term life insurance and whole life insurance are policy options that come with pros and cons for millennials to consider.
term life insurance
Term life insurance is a policy that keeps a person covered for a temporary period of time. If the insured person dies within that period, a death benefit will be paid to the named beneficiary. On average, a term life insurance policy is between 10 and 20 years. If an individual outlives their policy, no death benefit is paid. Some insurers may offer the option to renew or convert to a different plan. Premiums are typically low for young people, making it a more affordable option for millennials. The disadvantages of term life insurance are that the coverage is only temporary and the premiums increase each time a new term is purchased.
whole life insurance
Whole life insurance is a policy that provides coverage for the life of the policyholder, as long as the premiums are paid. The policy can build cash value over time that can be borrowed, partially withdrawn, or fully withdrawn upon surrender of the insurance policy. The price of the premium is fixed for the entire policy, which means that it will not increase as the person ages. Many whole life insurance policies also do not require a medical exam.
The main benefits of a whole life insurance policy for millennials are that it never expires, builds cash value, and can earn dividends. Cash value growth and growth through dividends are tax deferred. It should be noted that whole life insurance can be more expensive than term life insurance. With the same death benefit, a whole life insurance policy can be five to 15 times more expensive than a term life insurance policy. Insurers are likely to continue to evolve their policies to cater to millennials as they become more interested in life insurance.
The bottom line
A recent study found that millennials are the most likely to be influenced by the pandemic to buy life insurance. Forty-five percent of millennials said they are more likely to purchase life insurance due to COVID-19, compared to 15% of baby boomers and 31% of Gen Xers. Fidelity Life offers term life insurance, either with an online quote or with the help of an agent, making it easy for people to get coverage.
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