How millennials are changing lives

CHICAGO, July 05, 2022 (GLOBE NEWSWIRE) — A recent survey by LIMRA found that nearly half of millennials are now more likely to buy life insurance because of the pandemic. Their interest was higher than both Gen Xers and Baby Boomers. Millennials are also changing the life insurance game by buying life insurance online. Some policy options that best suit their needs include term life insurance. Here’s what you need to know about how millennials handle life insurance and which policies are best for them.

Buying life insurance online

Millennials are used to making many of their purchases online. The pandemic only made them do more online shopping. As a result, life insurance companies are building their digital platforms to make life insurance easier to research and buy online. Millennials can receive offers from different companies without having to communicate with an agent. Once they decide on a policy, in most cases they can fill out an online application and possibly get approved within the same day. The insurer may offer a life insurance policy that does not require a medical examination, making the purchase process faster. Term life insurance and whole life insurance are policy options that come with pros and cons that millennials should consider.

Term life insurance

Term life insurance is a policy that provides coverage to a person for a temporary period of time. If the insured dies within this 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 a person outlives their policy, no death benefit is payable. Some insurers may offer an option to renew or convert the policy to a different plan. Premiums tend to be 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 taken out.

Whole life insurance

Whole life insurance is a policy that provides coverage for the policyholder’s lifetime while premiums are paid. The policy can accumulate cash value over time, which can be borrowed, partially withdrawn, or fully withdrawn upon surrender of the insurance policy. The premium price is locked in for the entire policy, meaning it will not rise as a person ages. Many whole life insurance policies also do not require a medical exam.

The main advantages of a whole life insurance policy for millennials are that it never expires, builds cash value and can earn dividends. Cash growth and dividend growth 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 will likely continue to evolve their policies to cater to millennials as they become more interested in life insurance.

The bottom row

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 say they are more likely to buy life insurance because of COVID-19, compared to 15% of baby boomers and 31% of Gen Xers. Fidelity Life offers term life insurance policies either with an online quote or with the help of an agent, making it easy for people to get coverage.

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