Benefit Insights- Article taken from Cincinnati Benefit Solutions
Many organizations invest substantial resources in putting together attractive benefits packages for employees. With its enticing promise of financial security for loved ones, life insurance has traditionally been a popular benefit option.
However, the generational shift taking place in the workforce has led some younger workers questioning the need for life insurance. A recent survey conducted by the Life Insurance and Market Research Association (LIMRA) shows that only two-thirds of Gen. Y, also called Millennials, have any kind of life insurance.
Some of the factors behind the statistics may be shifts in income and life styles. Large numbers of millennials are entering the workforce with a significant amount of student loan debt, and many are delaying traditional adult milestones like getting married, having children and purchasing a house.
Yet while these attitudes may seem to lessen the immediate need for Life Insurance for millennials, they are not entirely turning millennials away from the idea of Life Insurance.
The same survey found that Gen. Y consumers are more likely to report that they will buy Life Insurance in the next 12 months than other generations. Additionally, 1 in 4 Gen. Y consumers said they would prefer to purchase Life Insurance through their workplaces.
These numbers suggest that millennial workers are not adverse to life insurance, they just need to be sure of its value before signing up. With that in mind, here are some reasons that employers can use to encourage millennial employees to purchase Life Insurance.
Its CHEAPER. Generally, Life Insurance gets more expensive as the person gets older. A 25 year old, per say, in good health can find a sizable 6 figure term life policy for just a few hundred dollars a year. For a senior citizen, that same coverage can cost thousands more.
While there is no hard reference point for the start of Gen. Y the oldest millennial' s are now approaching their mid-30s, and the window may be closing on the time for them to get the best rates.
IT PROTECTS DEPENDENTS. Although Millennials are pushing back marriage and children, that doesn't mean all of them are, nor does it mean they are delaying these events forever. Life Insurance should be attractive for anyone with dependents regardless of his or her age. The reality is that FEW people have savings that their dependents could live off should they die unexpectedly.
IT PROTECTS FAMILIES FROM DEBTS. It's no secret that today's college graduates are burdened with record-breaking amounts of student loan debt. If something were to happen to them that included their parents as financial cosigners, their parents would be responsible for the outstanding balances. Similarly, a newlywed spouse who has joint credit card debt or mortgage debt would be responsible for the entire sum should their spouse die. Moreover, the average funeral costs between $6,000 and $10,000.
Buying enough Life Insurance can take care of these financial issues. A relatively small Life Insurance policy can help cover many financial debts.
Thanks to Cincinnati Benefit Solutions for the information!