When you’re in your 20s or 30s, you’re concerned about the here and now — and the where and when. Which is why planning your weekend and deciding where you want to travel to next are some of your biggest concerns.
Your thoughts rarely dip into the “what if” or “when I’m older” categories because you’re so caught up in daily life (and by daily life, we obviously mean Instagram). So when someone mentions life insurance, you roll your eyes in disbelief that you’ll ever need it.
Although we’re not exactly living like hunter-gatherers in 2018 (shout out to our Paleo friends), you can never predict the obstacles that life will throw your way. That’s why you’ll want to have some kind of backup plan for down the line.
Spoiler alert: Part of that backup plan is called life insurance.
We get it, you probably don’t see life insurance as a financial priority at this stage in your life, and you’re not alone.
According to research conducted by TD Insurance, almost half of Canadian millennials don’t have life insurance (and it’s not because they’re adverse to it). Over half of Canadian millennials think life insurance is too expensive (56%) and best suited for established couples with children (46%) or young couples starting a family (41%).
But this doesn’t mean millennials are totally put off by the idea of life insurance; 6 in 10 say they would consider getting it in the future. (Talk about adulting, right?)
If you’re one of those people or someone who thinks you’ll never need it, these life insurance myths might change your mind.
“Figuring out what life insurance policy I need is too difficult.”
Just over half of Canadian millennials (51%) say they aren’t knowledgeable about life insurance. Although it may seem overwhelming initially, you can start by researching your options to see what works best for your unique situation.
The most common type of life insurance for millennials is term – it provides coverage over a pre-defined number of years. Check out the TD Right Fit Coverage Assessment tool right from your smartphone, to learn what coverage would best fit your needs.
“I can’t afford it.”
You may or may not know that life insurance generally gets more expensive as you age and research by TD Insurance has revealed that 41% of Canadian millennials prefer to have more spending money rather than putting it towards insurance premiums. Perhaps you prefer to keep extra cash for brunch or a night on the town.
What’s good to know is that term life insurance keeps you locked in at a fixed rate for a period of time (e.g. 10 or 20 years). This means your rates won’t change until your term is up for renewal, and it’s a relatively inexpensive option for millennials. If you’re approaching your mid-30s, remember the window to get the best rates may be closing.
“I’m young and single, I don’t need it yet.”
What if you have no spouse or dependents? It doesn’t matter. Life insurance can provide coverage for other family members, too. If your parents are co-signers on any loans you have, as beneficiaries of a term life policy they could use the proceeds to help pay the balance off should something happen to you.
According to TD Insurance, 31% of Canadian millennials feel they’re young and don’t need life insurance. But if you’re planning to get married and have kids in the next few years, you’ll want to lock your rates in pronto.
“My employer already provides coverage.”
If you’re like 37% of Canadian millennials who think your employer-provided life insurance is all you need, you may want to think again. Beyond debt, life insurance can help cover things you never think of (or want to think of).
We’re talking about things like funeral expenses or miscellaneous charges. Even if you have employer-provided life insurance, it may not be enough to cover all of these financial obligations, so it’s a good idea to review the policy and look into a separate one to make sure your loved ones have sufficient coverage.
“It takes too long to do and I’m busy enough.”
Everyone’s busy, we get it. And with competing demands, some things fall down the priority list – it happens. But getting life insurance doesn’t have to be one of them.
Contrary to what you might think, life insurance isn’t about filling in an endless number of forms. Applying for life insurance can literally take as little as 10 minutes – less time than picking up a latte for your boss… and a lot more worthwhile.