Millennials live in an innovation-driven economy moving faster than any other generation. We can’t predict the future, but we can prepare and manage it with life insurance. It serves several purposes — all intended to build, provide for and protect the future financially.
Buying life insurance during early adult years offers several advantages. It’s likely that many haven’t a clue how life insurance works. And even fewer realize life insurance is an investment of themselves to be used against whatever life throws in their path — making the age of twenties and thirties ideal to purchase a life insurance policy.
Reason 1: Life Phasing Polices
As millennials focus on seizing new opportunities for education and careers — there’s little interest in life insurance. Granted most see life insurance as a method of paying debt in the event of a life tragedy or family misfortune.
It’s really about managing change accompanied with financial responsibilities.
Reason 2: Employer’s Insurance
Millennial or not, it's important to take the time to read your employee benefits. Take a close look at the features offered in the life insurance policy and ask questions if your unsure about anything. Most employers will not offer a standard plan with an option for additional coverage but the majority of companies have limited coverage.
In the event an injury prevents you from working — an employer’s policy may not cover your financial needs. In this case, you may need to secure independent coverage. In addition, having independent coverage will provide you with uninterrupted protection should the employer go out of business, you change jobs, or you get laid off.
Reason 3: Cost and Benefits
Premiums are calculated on the applicant’s age. A good health status translates into less risk, which typically reduces the premium.
If you are suffering from a health disorder, it’s a good idea to talk with an agent and get specific information on the features you need or should consider in the future. If diagnosed down the road with a serious health condition, the policy remains active.
Reason 4: Know Your Needs
Determine how much coverage you need. Do research on types of policies along with an insurer and look for the insurer’s rating. It’s an industry rating, verifying the financial strength and the ability to pay the policy claims.
Life is full of surprises for young adults and their children, some of which can cause serious injuries. So it's also important to ask about riders for long-term healthcare or disabilities. These policies can help cover the financial expenses.
Reason 5: Take Care of Business
As you accumulate assets and begin to raise your family it’s essential to secure a backup plan using the life insurance features for paying day-to-day bills for childcare and family expenses. It’s an affordable method of providing for your family when you can’t.
· Choose between the two major types of life insurance: term or whole life.
· Term insurance pays a death benefit (sole provision) as long as the policy is in force whereas term policies can range up to 30 years.
· Whole life pays a death benefit and offers three plans — traditional whole life, universal life, and variable universal life.
Reason 6: Plan, Plan and More Planning
Most of us know about life insurance payouts for injuries, death, and beneficiaries. Whole life policies also have a savings program — earning interest and building equity. Provisions vary from company to company. It’s worth the time to learn about this component. Portions of the policy earnings are tax-free, accumulating a cash-value over time.
With a sufficient cash value, you can borrow against it or use it to pay the insurance premium during early retirement, keeping the policy intact. This is a valuable financial resource for young adults.
How Union Financial ServicesCan Help
As you embark on the exciting journey of retirement planning, envision a future where your legacy is not only protected but strategically enhanced. This is where our expert financial advisors come into play, seamlessly incorporating life insurance into your retirement strategy. Beyond the typical scope of coverage, life insurance can be a dynamic tool, offering a unique blend of protection and growth potential – all carefully curated to maximize the benefits for you and your loved ones.
Our seasoned advisors at Union Financial Services understand that life insurance is not just a safety net; it's an integral component of a comprehensive retirement plan. Picture a retirement where your financial legacy is strategically leveraged to create lasting impact, whether it's providing for your family, funding a child's education, or leaving a charitable legacy. With our personalized approach, we analyze your unique financial situation to tailor life insurance solutions that align seamlessly with your retirement goals and aspirations.
Why leave the legacy you've built over a lifetime to chance? Our dedicated team is committed to optimizing life insurance as a powerful tool in your retirement arsenal. By partnering with Union Financial Services, you gain access to a wealth of knowledge, strategic planning, and a roadmap to a financially secure and impactful retirement. Let us help you navigate the intricacies of life insurance and retirement planning, so you can enjoy the peace of mind that comes from knowing your legacy is in expert hands. Secure your financial future and leave a lasting impact with the guidance of our experienced financial advisors.
Contact us today!