Younger Americans show the highest level of concern across all generations for common financial planning issues, including saving for retirement, paying for a child’s education and burdening others with final expenses…
If you are a millennial (between the age of 25-34), have you started planning for your financial future? According to the 2014 Insurance Barometer Study, released earlier this month by nonprofit Life Happens and LIMRA, it was found that younger consumers are noticeably more anxious about their financial plans, despite being best suited to take actions now that can make a difference.
The study reveals that…
– Half of consumers age 25-34 (52 percent) state they are very or extremely concerned about having sufficient funds for a comfortable retirement, compared with just 47 percent of consumers age 35-44.
– Nearly a third of millennials (27 percent) are as concerned about paying for a child’s schooling and burdening others with final expenses (28 percent).
– Consumers under age 25 show the most worry of all age groups when it comes to paying for medical expenses (43 percent are very or extremely concerned), leaving dependents in a difficult situation if they were to die prematurely (38 percent), and paying for a child’s schooling (36 percent).
“Having come of age through the recession and facing uncertainty about the future of employer and government protections, millennials are having to take personal financial responsibility to ensure their future plans are secure,” said Marvin Feldman, CLU, ChFC, RFC, President and CEO of Life Happens. “Life insurance can provide stability and financial peace of mind and yet, while younger Americans recognize its importance, they lack a basic understanding about it, which may be hindering them from getting the coverage they need.”
According to the study, nearly one third of adults overall (31 percent) believe they would feel the financial impact from the loss of a primary wage earner within one month of their passing.
About 65 percent of consumers agree that they personally need life insurance and one in four (27 percent) believe they need more. One third of those surveyed under age 25 (33 percent) and age 25-34 (29 percent) say they need more.
The two most commonly cited reasons survey respondents provided for not purchasing more life insurance?
– 63 Percent cited too expensive
– 59 Percent cited having other financial priorities
The irony of this is that younger Americans are generally more likely to qualify for preferred rates because of their age and health status.
It’s unfortunate that people have a misguided idea about how much life insurance actually costs. On average, people assume the price for a $250,000 level-term life insurance policy for a healthy 30 year old is $1,000. That’s nearly 10 times its actual cost of $150 a year! Overall, more than 80 percent of Americans surveyed overestimated the cost of life insurance and this misconception has been around for some time.
The best course of action is to get a quote from your insurance agent to know for sure how much life insurance will cost you. Call the Reno Agency for your free life insurance quote today, at 269-792-2232.
Financial planning for millennials needs to begin now. Begin the conversation with a certified financial planner (CFP) so you can first become educated on retirement funds and life insurance, and second so you can create a game plan for your financial future.