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Why Do Millennials Need Life Insurance?

Let’s talk about it

What is the best way is to discuss this important topic without immediately turning off my audience? I know that being a millennial myself, I take offense to condescending sales pitches. Nobody likes that. If you’re anything like me, you’re browsing your social media accounts, watching Netflix and carrying on a conversation with someone all at the same time. We love technology, multitasking, and Netflix (but seriously, though). If you want to reach a millennial, you’re going to have to skip the newspaper ad or TV commercial (what are those?) to sell life insurance, and find me online. Oh, and make it quick, because I’m busy!

Get ‘er done

It’s been said that millennials are the most uninsured generation alive today.[1] I remember a few years back, when my sister (who was an insurance agent), asked me about getting a life insurance policy for me and my husband. I was in my mid-twenties, and I had two thoughts run through my head: #1, isn’t life insurance for people who are in their 40’s or older? #2, I was somewhat relieved that she brought it up so that I didn’t have to. The process was quick and painless (minus the quick needle poke for the blood test!) and I was so at ease once the policy was in place. “Why was I so freaked about getting life insurance?” I remember thinking, after it was so simple to procure.

Is now a good time for you to get life insurance?

  1. Are you young and healthy? Then now is the perfect time to apply for life insurance because you’ll lock in a very affordable rate. Every insurance company understands risk. A healthy millennial is a low-key risk, especially if they’re a non-smoker with little to no preexisting conditions. If you qualify for the best rating, you could pay less than a dollar a day!*
  2. Does anyone financially depend on you? If you were to pass away tomorrow, would it leave your significant other, spouse, or children in financial distress? How would their lives be affected if your income was out of the picture? Even if you’re a stay-at-home parent, your spouse would have to pay for someone to care for the children, which is very costly.
  3. Do you have any debt? There are certain types of student loans that would be waived if you passed away. However, if your parents co-signed on a student loan, car loan, or credit card, then they could still be on the hook even after you’re gone. If your parents put them self in financial hardship in order to send you to college, then think of the financial burden you would relieve by naming them as your beneficiary.
  4. Do you have a policy through work? While it’s great if your employer provides a life insurance policy for you, it most likely ends when your employment does. Meaning, you can’t take it with you. Is it enough? Typically group life insurance policies are not enough to cover some of the exposures we previously outlined.

Read More Why Do Millennials Need Life Insurance?

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TIPS FOR SHOPPING YOUR HOME AND AUTO INSURANCE

If you’re thinking about shopping for a new insurance carrier, there are important differences you should consider.  It seems that every insurance carrier is offering the best price – but that’s impossible.  The claim to a low price can grab a prospective customer’s attention.  In reality, all companies in all industries compete for your business in three ways: Price. Service. Quality. 

PRICE:

We would all love it if we could pay low insurance premiums that never increased at renewal, wouldn’t we?  Unfortunately, that isn’t the reality we face.  Distracted driving and increasingly severe weather1 have driven claims payouts higher.  The insurance company has a higher cost of doing business each year, and a prolonged low interest rate environment have negatively impacted insurance companies.

Every carrier has a niche market and can offer competitive premiums for their ideal client.  Longevity with a carrier can lower your rate and often provide you loyalty benefits for being a long-time customer.

Carriers base your rate on many personal factors.  Your age, sex, location, marital status, credit score, vehicles, driving history, etc., all go in to determining your rate.  Many times consumers will say things like, “my neighbor is paying half of what I’m paying for insurance.”  That may be true, but we don’t know the specifics of their policy, or how their personal information may differ from yours.

When getting quotes from a new company, provide as much information as possible, so the proposals they prepare are accurate.  Inquire about the discounts they offer to see if you are eligible.  Most carriers offer price incentives for premiums paid in full or monthly payments that automatically draft out of a checking account. Because each carrier offers different discounts, be sure to ask if there are other ways to reduce your cost.

SERVICE:

Have you ever dined at an amazing restaurant where the food was spectacular, but the service left you with a bad taste in your mouth? (pun intended!)  In today’s world, service is becoming a lost art.  So many things can be done through automation that the personal connection is lost.  It matters who picks up the phone at claim time or when you need recommendations on coverage options.  Mistakes buying insurance can be devastating.  Because you are insuring your most valuable assets (even your life!), consider the person who will be taking care of you.  Like all industries, insurance policies change and evolve.  It can be invaluable to have a trusted professional answering your questions.  Insurance rates are easy to shop, but trusted advisors are not.

Not every carrier has licensed agents – many companies work via a call center environment where you will speak with a new person every time you call.   Don’t be afraid to ask questions.  You’re interviewing the new company just as much as they’re interviewing you.

In addition, consider the service from the claims department.  When it comes time to file a claim, you want to feel confident in your carrier to provide excellent service and prompt claim resolution.  There are websites who rate insurance based on different factors.  You can do you homework and look into some of these top carriers before you contact them for a quote.2

QUALITY:

Gucci said “Quality is remembered long after the price is forgotten.”  Strangely, nobody ever seems to ask about price when their home has burned down, their car was totaled in an accident, or they lost a loved one due to a premature death.

Carriers are not create equal.  Some provide quality policies with robust coverage and others offer basic policies that require more coverage be added through endorsements.  Have you ever read an insurance policy from cover to cover?  Probably not – you would be nodding off by the second page.  Because there is a plethora of information in a policy, having a clear understanding of how your assets are covered is not easy.  It is important you trust who you are working with, so they can explain the details of your coverage.

You don’t want to have a nasty surprise when you file a claim and discover there are gaps in your policy.  While you’ll never be able to insure against everything, there are quality companies with quality policies to best suit what you need.

Because insurance is intangible, buying it does not give us the excitement or instant gratification we get when purchasing a new car, home, or experience.  However, when we take our time to consider all of the details, there are great benefits to shopping your insurance and placing it with the carrier you feel best suits the needs of you and your family.Reference:

1 http://www.denverpost.com/2017/05/23/hailstorm-costliest-ever-metro-denver/

2 http://www.jdpower.com/ratings/study/U.S.-Auto-Insurance-Claims-Satisfaction-Study/1601ENG