When you’re young, it’s easy to feel invincible. I mean, you only live once … right?
Young adults have always been slow to purchase insurance. But, budget-conscious millennials with few assets to protect are found to be far less likely to be insured than previous generations.
We get it. With student loans to pay off, skyrocketing housing costs and a savings account to build, insurance might seem like least of your priorities. In fact, about 20 percent of millennials say they can’t afford health insurance.
But, health insurance isn’t just health protection. It’s protection against the unexpected — which could really damage your finances.
Your life could change in an instant. And if you “can’t afford” insurance, chances are slim that you could foot the bill if an accident were to happen today.
Yes, health insurance is expensive. But, so are medical bills — which are one of the top reasons why people go bankrupt. All it takes is one freak accident or an unexpected diagnosis. Nobody ever thinks it could happen to them.
Living without health insurance is a huge risk (and not the fun kind)! Although the chances are slim that you’ll need to use your health insurance often when you’re young, the stakes are high. You’ve got your whole life ahead of you.
As for life insurance, this might be even trickier to justify taking on the extra cost. But just as we don’t plan to get sick, we rarely plan to die prematurely, either.
Life insurance can offer so many things. It can transfer your wealth to your kids, cover burial costs and pay off debts so your kids don’t have to. The earlier you lock in your life insurance, the cheaper it will be — forever.
There is no “right” age where you need to purchase life insurance. The answer will depend upon your specific financial situation. But, it is important to note that if you wait too long you might be too unhealthy to qualify for an affordable policy, or one at all.
Other common forms of insurance, such as auto insurance, are partially required by law depending on the state.
Millennials have the highest percentage of only having liability coverage at 37% despite the fact that “on a percentage basis, [millennials] tend to get into more accidents and receive a higher propensity of vehicle citations” according to Mark McElroy, EVP of TransUnion’s insurance business unit. Millennials are less likely to enroll in homeowners and disability insurance as well.
For a generation who has been raised on fast food and instant, online shopping, it might be hard to notice how having insurance can immediately benefit your life. But if you’re on the fence about purchasing insurance, perhaps you can begin to view it as a safeguard against your financial future.
The bottom line is, you don’t know what is going to happen tomorrow — with or without insurance. But, you do deserve to feel safe. You deserve to be able to rest easy at night knowing that all of the wealth and health you’ve built thus far, and plan to grow in the future, won’t be shattered by an accident tomorrow morning.
As a young adult, putting the right insurance protection in place may seem overwhelming and expensive. Let a CommunityAmerica Insurance Agent help you develop a plan that fits your budget.