Employee benefits solutions company, Clarity Benefit Solutions, explains why millennials are the most at-risk generation when it comes to life insurance.
Young adults that range in age from 23 to 38, also known as millennials, face a unique set of financial challenges. First of all, many are burdened with overwhelming student loan debt. Factor in deciding on how to save for retirement, and it's no surprise that this generation is stressed when it comes to finances. This is also why they may not even be thinking about obtaining life insurance. After all, they have their entire life ahead of them and they are not thinking about unexpected life events that could change their situation.
However, this doesn't mean they should put a life insurance policy on the back burner. This is the time to purchase one since life insurance premiums are based on factors such as overall health and age. Millennials who do not smoke or have preexisting health conditions are even less of a liability. Delaying the purchase of life insurance could result in the rates rising significantly. Millennials should lock in a good rate while they are in the prime of their lives.
Unfortunately, no one is immune to illness and tragedy. Funerals are expensive—and can be an unexpected financial burden on loved ones. Even purchasing a small life insurance policy can help to offset this expense.
While paying for a funeral might be a top-of-mind concern when considering life insurance, a millennial's student loan debt could fall on his or her parents in the event of death. This is also true of any accumulated credit card debt. Millennials should be proactive and purchase life insurance to avoid these issues, which will also result in less stress placed on their loved ones.
It is up to employers to ensure that millennials obtain the life insurance coverage that best suits their individual needs, including the following: provide affordable life insurance options, address financial issues (offer a student loan repayment plan), and provide them with additional wellness tools (budgeting tools and seminars).
Employers can also encourage employees to participate in HSAs to save money for unexpected expenses. The triple tax benefit assists the employee even when the money is not being used. Not only does this help them prepare for possible medical expenses, it improves their financial wellness overall by giving them another method of saving money for the future.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.