. get all the education u can all the way through your life.....
. get involved in your communities schools and churches and good knowledge of what's going on
and THE SECRET GOOD SHEET..... GET LIFE INSURANCE AND ACCIDENT INSURANCE.... because guess what for a few dollars a month we could get loans, travel, had credit accepted faster and for longer periods of time.... BECAUSE... we paid this monthly fee that insured should anything happen... we were covered.... it's the best thing we can pass on to youth and millennials..... especially those singles with pets, kids and or lovers or stuff that u want buried with ya....
BLOG: Millennials-Life-Acc Ins -did u know u can get credit n loans faster 4 longer and Ins. is 4cheaper than 2-3 coffee A month –think of your pets, kids, pokomon and stuff u care about – we did back in 60 and 70s –saved us many times...Canada Gov. Resource sites and great links.
O CANADA- Insurance Carriers Missing The Mark On Millennial Consumers
Insurance companies have consistently missed the mark when it comes to attracting millennial consumers. If you're unaware, the term 'millennials' is used to describe people born between 1980 and 2000, and they are one of the most underinsured groups of individuals in society today.
The disconnection between millennials and insurance companies can be attributed to several factors.
Insurers Don't Fully Understand Millennials
First of all, many insurance companies haven't yet figured out how to properly market their products and make themselves visible to millennials. The obsolescent marketing style of pushing out sales-driven copy and generic stock photos is no longer a viable marketing strategy.There is a lot of room for insurance companies and agencies to start communicating how their products can benefit millennials and provide solutions to their unique problems. Helping is the new selling, so carriers are more likely to gain millennials' eyes and ears if they start to address the specific questions that millennials are asking.
Many Insurers Not Engaging Enough On Social Media
When it comes to marketing insurance products to millennials, its important to remember that they grew up in the technological age where much of life is lived on the internet and specifically on social media. So, instead of relying on traditional advertising mediums, such as radio and television, it is crucial that insurance companies expand their reach and engage more online.A growth strategy underutilized by carriers is to promote to influencers in their internal sales force, who can amplify the company’s value proposition to all of their followers, including existing and potential consumers who are active on social media. Also, it is imperative to have systems in place for handling social replies and mentions in a timely manner, there is nothing worse than getting a reply to a question 3 days later.
Another good way to increase brand awareness among the younger demographics is to create and advertise useful content on social platforms and online communities that are popular among millennials.
Must-have: An Accessible and User Friendly Website
Some Canadian insurance companies must take a look at their accessibility standards for their corporate website. At the very minimum, an insurance company needs to have an easily accessible website that meets the Web Content Accessibility Guidelines.Usability is very important among younger internet users. A bad user experience can leave a company with more than just one annoyed website visitor if that visitor decides to broadcast their negative experience throughout the web.
It’s also important for insurance companies to remember that millennials use a wide variety of devices to connect to their services. These devices include smartphones, tablets, wearables and just about anything that can connect to the internet. Companies have to make sure that they have the ability reach customers through these different devices and operating systems.
Insurers Underestimate Millennials
Many insurance companies also miss the mark when it comes to attracting the millennial generation because they believe that millennials won’t make good customers or are not interested in any insurance products.Yes, it’s true that many Canadians under the age 35 may not have dependants or big liabilities to cover yet but securing coverage while they are young and healthy could be a huge advantage. Insurers should see the potential to inspire millennials to get covered now to secure their future from financial calamity.
There are several insurance products that millennials are well-suited for. Let’s take a look at some of these products.
Health Insurance
A significant number of millennials are currently working entry-level jobs in order to pay off their expenses such as student debt. Because they have little savings, getting sick and having to pay out-of-pocket for medical expenses not covered under provincial plans could be financially devastating. Having personal or group health insurance is great way for younger people to have a safety net in case they are faced with tremendous medical costs.Disability Insurance
Loss of income if the single biggest risk for high wage earners. Getting a disability insurance policy is a very good idea for young individuals just stepping into a self-employed role. Many entry-level jobs for smaller companies or start-ups won’t provide any group disability insurance for employees in case they suffer an injury or illness that renders them incapable of working. Because of this, having individual disability insurance can safeguard millennials who become unable to work and earn any income due to a long-term disability.Life Insurance
Many millennials don't have mortgages to insure, family to cover or final expenses to worry about yet but that doesn't mean they still won't benefit from securing coverage for those needs now. There have been many cases of relatively healthy young people being diagnosed with non-life threatening illnesses yet still becoming completely uninsurable because of it. It does happen and millennials need to be aware that future insurability is not guaranteed for anyone, unless you have a policy that offers that protection in place before disaster strikes.These are just some of the insurance products that insurance companies should start marketing more towards millennials. There also needs to be more market research done by these companies in order to develop other products that are specifically aimed towards fulfilling the needs of the millennial generation.
At the end of the day, it’s important for insurance companies to realize the fact that the millennial generation is rapidly changing the life and health insurance industry. Companies that are interested in being successful in this new digital age will have to adapt to this change by shifting their corporate strategy to a more customer-centric approach that fully embraces the use of technology and help-based selling.
https://lsminsurance.ca/life-insurance-canada/2015/03/insurance-carriers-missing-the-mark-on-millennial-consumers
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How
To Make Sure Your Pets Are Taken Care Of After You’re Gone
This article on pets and animals is provided by Everplans — The web's leading resource for planning and organizing your life. Create, store and share important documents that your loved ones might need. Find out more about Everplans »
America is approaching a belly rub crisis. Or, in the case of cats, that spot right above their tail that makes them like you for a few minutes.
 (Source: Instagram @_oscarmayerhammy_) |
 Ollie (a.k.a. The First Dog of Everplans) |
 (Source: Instagram @guslittlekitty) |
What A Pet Needs
 (Source: Instagram @frankietherescue) |
- Food (including treats)
- Shelter
- Veterinary care (including medicine)
- Love (including kisses and cuddles)
A Little Bit of Human Touch
 (Source: Instagram @ralphielovesyou) |
 (Source: Instagram @cris_body) |
First Comes Power, Then Comes Money
 (Source: Instagram @bobafettpup) |
 (Source: Instagram @florencetheexotic) |
Is Your Pet Trust-worthy?
 (Source: Instagram @quincy_bostonterrier) |
 (Source: Instagram @hellosarahlee) |
 (Source: Instagram @4littledogs) |
 (Source: Instagram @maariabutt) |
 (Source: Instagram @dollardoggie) |
What About The Will?
 (Source: Instagram @illlani) |
 (Source: Instagram @harlowandsage) |
 (Source: Instagram @apokor) |
 (Source: Instagram @fearlesswift) |
What Are Your Pets Needs and Quirks?
 (Source: Instagram @anais_hayde) |
 (Source: Instagram @banezamakerdance) |
- Feeding habits (portion sizes, dietary restrictions, special treats)
- Veterinarian info and medical records
- Medical conditions, medications (example: heartworm meds, flea/tick prevention…)
- Favorite toys
- Favorite Activities: Swimming, long hikes, agility, watching Law & Order: SVU...
- Special quirks: Scared of thunder, doesn’t like to be picked up, won’t use the litterbox if you’re watching, etc…
 (Source: Instagram @peeweefurman) |
Last Bits Before We Take A Long Nap In A Sunbeam
 (Source: Instagram @minnietheyorkiee) |
 (Source: Instagram @littlemousemetz) |
 (Source: Instagram @frenchiebutt) |
State-By-State Health, Legal, And End-Of-Life Resources
Advance Directive Forms, Digital Estate Laws, Organ Donation Registries, Probate and more.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Col.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Col.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
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GOVERNMENT OF CANADA- Benefits
Includes Employment Insurance, pensions and benefits for housing, education, training, family and people with disabilities
Benefits
Includes Employment Insurance, pensions and benefits for housing, education, training, family and people with disabilities
Topics
Employment Insurance
Includes Employment Insurance (EI) temporary benefits for workers, sickness, fishing and family-related benefits as well as how to apply online and submit a report.Family benefits
Includes benefits to help your family with the costs of raising children, maternity and parental leave, compassionate care plus calculators to estimate benefit amounts to which you may be entitled.Public pensions
Information on the Canada Pension Plan, Old Age Security pension and related benefits, the Canadian retirement income calculator and retirement planning.Education and training benefits
Scholarships, grants and funding opportunities for students whether part-time, full-time, with dependents, with disabilities and from low or middle-income families.Housing benefits
Includes information on the GST/HST new housing rebate, financial assistance to repair your home, improve accessibility for disabled occupants and increase its energy-efficiency.Disability benefits
Includes disability pensions and children’s benefits, residential home rehabilitation, savings plans and a gasoline tax refund program.Benefits by audience
Find information about benefits and programs, including eligibility.Payment calendar
Includes payment dates for recurring Government of Canada benefit payments.Benefits finder
Includes a customized list of federal, provincial and territorial programs and services you may be eligible for.Features
My Service Canada Account
Provides convenient and secure access to view and update your Employment Insurance, Canada Pension Plan, and Old Age Security information online.Employment Insurance Maternity and Parental Benefits
Learn about income programs for individuals who are pregnant, have recently given birth, are adopting a child, or are caring for a newborn.Vanier CGS
The Vanier Canada Graduate Scholarship three year scholarships awards of $50,000 per year helps Canada’s universities attract highly qualified doctoral students who have displayed academic excellence, research potential, and leadership.- Date modified:
https://www.canada.ca/en/services/benefits/index.html
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The First 4 Things Millennials Should Know About Life
Insurance
By Elizabeth RenterDespite what you’ve read, you and other millennials aren’t all that unique. You’ll have to deal with many of the same financial decisions younger adults have been facing for decades, even if you’re making some of those decisions — like starting a family — a little later. And like generations of young adults before you, you are newcomers to term life insurance.
You might not need life insurance at all. If you have no dependents and money saved that could cover your funeral costs and any additional burdens your death might cause, you can go without. But if your death would put someone at a financial disadvantage, coverage is a very good idea.
You can’t purchase life insurance as easily as you summon an Uber or text for a pizza delivery, but if you decide you need it, you can safeguard your assets and the people you care about with a little education, a little effort and surprisingly little money.
1. Life insurance serves many purposes
If someone depends on you financially, there’s a good chance you’d leave them in a bind if you died without a life insurance policy. Even if you don’t have a spouse or children, you might share financial accounts with a loved one. Or, you might help care for a sick family member or contribute toward your family’s housework and bills.
People buy life insurance to pay the costs of their deaths — both immediate and long-term. It can:
- Cover funeral and memorial costs.
- Replace your income.
- Help your loved ones hire people to provide services you provided.
- Pay off mortgage, credit card, loan and other debts.
- Pay your children’s college tuition.
- Leave an inheritance.
2. Term life insurance is cheapest when you’re young
At this age, you can buy a high-value term life insurance policy for less than a gym membership. A healthy, tobacco-free 25-year-old can purchase a 20-year, $500,000 term life policy for about $15 per month, according to NerdWallet’s analysis of average life insurance rates. If you don’t have big expenses to cover after you’ve died, like a mortgage or college education for children, you might not need $500,000. If you decide you need a lower amount, it will cost even less. Even if you’re not in top shape, you can pay less than $25 per month.
As you get older and your health risks increase, you’ll pay more. Buying now locks in your rate for the length of your policy. If you’re planning to have a family down the road and have no other urgent need for life insurance, you could wait so your policy is sure to last until your children are adults, or you could pay a bit more for a policy with a longer term. Both options will mean you pay a little bit more. A 20-year, $500,000 term life policy would only cost about $16 at age 35 or $30 by age 45, but will be close to $65 by age 55.
3. Getting a policy will not be instantaneous
Many life insurance companies haven’t kept pace with technology and your do-it-yourself generation, according to NerdWallet life insurance expert Amy Danise. Some still don’t offer online quotes and instead direct you to an agent — very old school.
“People, and especially young adults, want to be able to purchase things quickly once they’ve made a buying decision, and get quick or instant product delivery,” says Danise. “With most life insurance purchases, the application process can take several weeks and can involve answering the same questions over and over.”
You can find online term life insurance quotes, but be prepared to follow your initial application with at least a few phone calls and a medical exam.
4. Life insurance isn’t a one-size-fits-all solution
Your ideal life insurance policy probably isn’t the same one that’s right for your parents. Online tools like this one can help you nail down the best policy specifics given your needs. Base your coverage amount on the things you want your policy to pay for in the event of your death. The term — or length of time it covers — should be based on how long those costs will last.
For example, if you don’t have children and have no plans for them, you may be buying a policy to cover your funeral costs and debts. If you have a 30-year mortgage, it makes sense to purchase a life insurance policy that would be in place as long as you’re responsible for that loan. Likewise, if you’re purchasing a policy to care for your aging parents in the event of your death, the term would reflect how long they might be dependent on your assistance.
As you shop for your first life insurance policy, there’s much to learn about this important part of long-term financial planning. Don’t be afraid to ask questions as you look for the right plan — it’s a purchase you’ll live with for years to come.
Elizabeth Renter is a staff writer at NerdWallet, a personal finance website. Email: elizabeth@nerdwallet.com. Twitter: @ElizabethRenter.
Follow NerdWallet on Twitter: www.twitter.com/NerdWallet
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Life insurance is a tough sell for millennials
(This version of the story corrects length of policy to 20 years from 30 years in fifth paragraph from end)By Bobbi Rebell
Joseph Shonkwiler, the proud father of newborn twin boys, owns a life insurance policy.
Like many millennials, the policy was not a priority for the 34-year-old from Cambridge, Massachusetts, until the twins were due. He will start paying down close to $200,000 in student debt after completing his MBA from the Massachusetts Institute of Technology's Sloan School of Management.
A study from Life Happens, a consumer group formed by insurance providers, and LIMRA, the life insurance trade association, found that 29 percent of millennials cited saving for a vacation as a priority over purchasing life insurance or increasing their coverage. And 60 percent of millennials said it was more important to pay for expenses like Internet access, cable, and cellphones than purchase some or more life insurance.
"Young people think life insurance is something you need to think about when you get old," said certified financial planner Shannah Compton Game. "It's a conversation topic for their parents, not them."
But young people need life insurance policies too, especially if they have children or do not have coverage through an employer. Even a workplace plan, which typically covers $50,000 in income replacement, may not be enough for a young person with a mortgage or heavy private student loan debt which they could pass to spouses or parents who co-signed for loans. Workplace insurance plans do not transition with you, so millennials who change jobs a lot may come in and out of coverage throughout their careers.
"The main reasons a young person needs life insurance are if they are married or have a family. Life insurance provides income replacement that can be valuable for young people who are just starting out, or in the situation where one spouse makes more than the other," said Compton Game.
REACHING OUT
The insurance industry is seeking new ways to appeal to younger buyers who are not offered a life insurance policy through work, or need extended coverage beyond a workplace plan because of risk factors.
Focus on benefits rather than telling stories about death, said Compton Game.
Most traditional life insurance policies require a medical examination and meeting with a sales person, processes that do not appeal to millennials used to making a transaction with a few clicks on their smartphones.
Some insurers have come up with new ways to attract millennials.
In May, USAA added an option allowing young people to increase coverage at key life events, such as having a child, without additional underwriting.
Also in spring, MassMutual started a life insurance company called Haven Life to target younger customers. To minimize the intimidation factor, Haven Life offers immediate decisions on up to $1 million in term coverage from top-rated carriers, and the underwriting process occurs online.
MISJUDGING PRICING
When Haven Life opened for business, Shonkwiler was among the first customers. He had spent close to 50 days working with a traditional life insurance company, and the mountains of paperwork and questions were wearing him down.
As a young, healthy non-smoker, Shonkwiler was frustrated that the coverage he wanted did not seem available. The online process at Haven was much smoother and was completed in a week, he said. His $500,000, 20-year term policy costs $25 a month.
That is less expensive than many people would think. In fact, 80 percent of all consumers misjudge the price for term life insurance, which is purchased in blocks of time like 10 or 20 years and does not yield a payout unless there is a qualifying event.
The survey by Life Happens and LIMRA found that millennials believed a healthy 30-year-old would have to pay $600 a year for a 20-year $250,000 policy. The annual rate is actually as low as$160, the organizations said.
Myriad other insurance options are available besides term policies, which offer more complicated investment opportunities and have different pricing structures. But anyone considering those should consult an independent financial adviser.
To do the math on what kind and how much insurance you need, you can call individual insurance companies to compare, or get information from companies like Life Happens and Bankrate.com, which have easy-to-use calculators.
(Editing by Lauren Young and Beth Pinsker)
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These companies want
millennials to think about their deaths
By Maria LaMagna
Published: June 12, 2016 8:02
a.m. ET
Want to create a will and
do some end-of-life planning? There’s an app for thatCourtesy of Cake
Consumers answer yes-or-no
questions about their funeral plans on Cake.
LaMagna
Kristen Sereci, a 25-year-old
who works in human resources in Portland, Ore., is already planning her
funeral.
ARTICLE
She isn’t sick. She just found
out there’s a website and an app for it. “It’s important for people to think
about end-of-life planning, even young people,” she said. “That sounds morbid,
but I have people close to me who have passed away, and the people in their
lives had no idea what they wanted them to do.”
For many people — particularly
those as young as Sereci — end-of-life planning may seem premature, not to
mention pricey.
Some 64% of American adults don’t have a
will, including 55% of those with children, according to a survey of
about 2,000 adults by legal services website Rocket Lawyer that was conducted
with Harris Poll in spring 2014. For young people, that number is higher. About
90% of adults aged 18 to 34 don’t have a will, and 80% of those aged 35 to 44
don’t, according to the poll.
Now, several companies are
trying to take away the discomfort of thinking about mortality and the hassle
of finding the resources for end-of-life planning by providing websites and
apps that allow people of any age to store and create important documents
including wills and funeral plans for a fraction of the hundreds or even
thousands of dollars it costs to do so with the help of an attorney.
Sereci has started planning her
own funeral on Cake, a Boston-based website and app that
co-founder Suelin Chen started about a year ago.
On Cake, users can create a
profile, which allows them to answer yes or no questions about their
preferences for health care at the end of life — such as “If CPR were not
likely to make me better, I would not want it” and “I would not want to be kept
in a vegetative state forever,” as well as how they’d like to be remembered,
including “I would like to have a tree planted in my memory” and “I want a
green burial.” Answering questions on the site or app is free.
After filling out the questions,
Cake provides links to resources customers can visit to make corresponding
arrangements. The site also provides a “concierge” service, in
which clinical social workers help customers make their end-of-life plans by
phone and email. It costs $119.99 for a single session, or $14.99 per month for
a “premium” membership which includes additional consultation sessions.
Cake stores customers’ answers
to the planning questions whether or not they opt into the concierge service.
Customers select a “key person” who can access the answers to the questions
they selected by giving Cake the person’s email address and phone number.
Muhammad Ali’s procession draws thousands of fans
(1:23)
The funeral procession of boxing
legend Muhammad Ali made its way through his hometown of Louisville, Ky., on
Friday, as thousands of onlookers chanted "Ali."
Cake isn’t only for young
people, of course, but Chen said the site could be a good tool for them to
start thinking about an end-of-life health care plan, even if they don’t have
many assets. End-of-life planning is a big pain point for a lot of younger
people, Chen said. “It’s so word-of-mouth to find an attorney, [and] hard to
find information online,” she added. “There’s a big gap in the marketplace.”
Abby Schneiderman co-founded the
company Everplans to fill that need as well. She began
the company as an online information resource in 2012; she came up with the
idea when planning her wedding, she said. There were so many websites and
online tools for that process, and other phases of life including raising
children and planning retirement, she said, but few for end-of-life planning.
Schneiderman was already an entrepreneur at the time; she previously co-founded
Haystack Media, a music social network, and was a principal at Tipping Point
Partners, a New York-based startup incubator.
She and co-founder Adam Seifer
wrote articles on topics including how to create a will and what to wear for a
funeral and eventually brought on more writers. And about a year after they
began the site, Schneiderman’s brother died in a car accident. “We were put in
a position of having to figure out what he would have wanted and track things
down. It was really a nightmare situation for my family,” she said. “What Adam
and I realized was that more so than providing content for people, we could
help them get a plan in place ahead of time.”
In 2014, they added features to
Everplans that allow users to not only read about end-of-life planning but to
get recommendations on the steps they should take if they don’t yet have
important documents such as a will or life insurance. Users can also store
information on the site including health and medical preferences, funeral
plans, passwords to online accounts, wills, trusts and insurance policies. It
costs $75 a year.
Similarly to Cake, customers on
Everplans select people who can access their Everplans accounts to find out
their wishes for end-of-life. The site calls those people “deputies.”
Everplans also has a
“Professional” version of the site it sells to financial advisers, estate
planners and life insurance agents, who distribute it to their clients. About
150 firms have signed up for that version since it became an option in May
2015, Schneiderman said. Between the “Professional” version and individuals
signing up, Everplans has “tens of thousands” of users, she said.
Part of the appeal of the site,
Schneiderman said, has been its conversational tone. The site’s editorial
director now is a former Maxim editor, she said. “It’s much more human and real
than you might think of when you think of an end-of-life planning company,” she
said. “It looks more like an article on BuzzFeed than a traditional end-of-life
planning site.”
Houston-based financial adviser
Matt Schwegman, 33, said he signed up for Everplans and later subscribed to the
Professional version for his clients. Six of his clients now use it. Some of
his younger clients have also used Everplans to organize their parents’ plans
instead of using it for themselves, he said.
“(End-of-life planning) isn’t a
fun subject to broach usually,” he said. “It’s actually easier to broach with
the under-40 crowd because it’s so far off, they’re more like, ‘Sure, let’s
talk about it,’” whereas older clients can become more anxious to discuss end
of life, he said.
Rachel Podnos, a 29-year old
attorney and financial planner based in Washington, D.C., said few of her
clients, particularly younger ones, have end-of-life plans when she begins
working with them. “It’s an important need for almost everybody and rarely
discussed, and there’s not a lot of information out there,” she said. “Now we
have robo advisers millennials can use to invest without having to hire a
financial adviser, but you don’t see a lot of that in estate planning.”
She has also sometimes been
dissatisfied with online services or software she can suggest to clients for
making a will or other documents online, she said. As a result, there’s a need
for companies like Cake and Everplans, she said.
At a bare minimum, adults should
create two basic documents
(online or otherwise), Podnos said. One is an advance health care directive,
which includes a living will and designates a health care proxy, or a person
who can make health-care decisions when an individual is incapacitated. The
other is a durable power of attorney, which designates a person who will handle
financial transactions (such as paying bills and filing tax returns) if an
individual can’t.
That said, seeing an attorney in
person can be a better guarantee of creating documents that are free of errors
and pertain to individuals’ unique financial situations, said Chantel Bonneau,
a wealth management adviser at Northwestern Mutual who works with millennial
clients. Laws for end-of-life documents vary by state and by particular health
problems, Podnos said, which can make the do-it-yourself method complicated.
When MarketWatch did an
investigation of online legal documents in November, for example, legal experts
said online forms can sometimes be inaccurate or out-of-date, or a non-standard
version of a particular document that may not hold up under state laws.
“If you do have properties, kids
you’re a guardian for or adequate resources, you may want to seek a
professional,” Bonneau said.
Creating the health care directive
is the most important step to take as a young person, particularly for those
who want a partner, rather than their parents, to make health-care decisions
when they are not married, Bonneau said. And, regardless of age, those with
children should have a will and plans in place for who will take care of them
in case of death, and who will take charge of financial assets for them.
Although end-of-life planning
might seem stressful, not having a plan would be more so, Bonneau said. “Think
about what you actually want,” she said. “Don’t minimize it.”
Individuals should also
double-check they have named beneficiaries for their retirement accounts, life
insurance and bank accounts, Bonneau said. She suggested disability insurance
for those who don’t have it and cautioned that federal student loans are
usually forgiven in cases of death, but private loans are not — the debt would
go to a co-signer in that case.
“Creating those documents is
just a very proactive way to ensure things will run smoothly if something
catastrophic happens,” Podnos said.
----------------
coming of age
-----------
Millennials remain unconvinced of their need for life insurance
While it may not be as popular as November or December with their Thanksgiving and Christmas holidays, September is Life Insurance month. For some people, it's just a good reminder to revisit beneficiaries and death benefit limits to policies because of life changes.Maybe you have an addition to the family that necessitates increased limits. Maybe you have fewer bills and dependents and don't need as much life insurance anymore. Or, maybe you're a millennial and haven't even considered buying life insurance.
While the age range of millennials varies by source, it is typically considered someone in their 20s and early 30s. They are also, by all accounts, remarkably absent from the life insurance market.
In a recent study by LIMRA, the insurance and financial services trade association, six out of 10 families falling into the millennial generation thought their households would suffer a negative financial consequence given the death of the primary breadwinner, compared to only one-third of baby boomers. It's important to note that the study was conducted beginning at age 25, so it is not capturing students in their early 20s, many of whom are single and still rely on their parents.
Furthermore, in 2010, the percentage of households owning life insurance in the United States hit a 50-year low, and insurance companies continue to grapple with the inability to convince younger consumers to purchase life insurance.
Since life insurance is of paramount importance for your family, let's look into why millennials have shunned such a basic and important facet of financial stability. The need for life insurance is triggered by two major events: marriage and children. One of the reasons millennials don't buy life insurance is quite simply because they don't feel they need it.
While this is partly the hubris of young people, it is also a byproduct of the financial crisis. Many people in their mid to late 20s got a late start on careers as the U.S. economy recovers. As such, decisions to get married and have children were postponed, and with it the need for protection.
Another reason goes back to the adage that life insurance is sold, not bought. And, many young people are wary of sales pitches and even less enamored with the landscape of financial advisors. Financial planning as a whole is struggling to attract young talent and today's millennials don't relate to the age-old method of distribution. Insurance companies and financial advisors alike will need to tailor their approach to attract the younger generation. Simpler products delivered on their terms, i.e., online, may be the best way to reach them.
The irony that I am using the print medium to discuss the need to change how we get through to millennials is not lost on me. As you might imagine, I would be better off texting this article to them than expecting them to read it in a newspaper. The hope is that this is a catalyst for the conversation.
Having life insurance that isn't attached to your employer is important. If you have millennial children with young families, as I do, it may be helpful for them if you broach the subject.
Waddell & Reed is not affiliated with LIMRA. This article is meant to be general in nature and should not be construed as investment or financial advice related to your personal situation. Consult your financial advisor prior to making financial decisions. Gary Parsons is a financial advisor with Waddell & Reed and can be reached at 894-9950. Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements. Waddell & Reed Inc., Member SIPC.
http://www.tallahassee.com/story/news/money/2014/09/21/millennials-remain-unconvinced-of-their-need-for-life-insurance/15918335/
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Millennials, do you need life insurance? Maybe not
Millennials, do you need life insurance? Maybe not
This post is sponsored by Haven Life, an online life insurance agency that lets you buy quality term life insurance online in 20 minutes. Views are all my own.If you have ever read my blog before, you know that as a financial planner, I value life insurance as an integral part of my client’s financial lives. Before training as a financial advisor, I honestly never gave much thought to life insurance. However, now I know that it’s a valuable tool to help protect you against certain financial risks.
While I value life insurance as a smart way to financially protect your loved ones, I don’t value it for every client; and for the most part I rarely recommend it to my millennial clients.
What would happen if you weren’t around?
Before you can even begin to wonder if life insurance makes sense for you (no matter how old you are), you need to go through the morbid process of imagining a world without you in it, and what it means to the people you leave behind.Yes, many people will miss you, maybe some people will rejoice and for others, it will not make a difference in their day-to-day lives. For most millennials, the primary ‘risk’ to their departure from this world is emotional, and while life insurance can prevent a number of risks, it can’t solve the emotional dilemma of losing a loved one.
I analyze risks in my client’s lives all of the time, and for millennials the biggest risks are usually not having enough in emergency savings, too much debt or not investing properly. I usually see minimal risks for my millennial clients that life insurance would solve. There are a few situations, though, where I have found myself suggesting life insurance to a millennial client.
Debt upon death
What happens to your debts when you die?During a meeting with a one of my millennial clients earlier this year, she lamented over the fact that she recently lost a friend at the young age of 26 and how his death acted as a wake-up call for her to lead a healthier lifestyle. His early departure also led her to the exercise of wondering what life would be like if she were gone; and she immediately worried about her student loans.
This client currently has over $120,000 in student loan debt that she is paying off. Her parents are co-signers on all of these loans and should this client pass, her parents would not only suffer the pain of losing a child but they would also bear the burden of $120,000 in student loan debt that she would leave behind.
Unfortunately, this is a scenario that many millennials are facing. They have significant student loan debt that would cause a serious burden on their parents should they pass away suddenly.
Unless this client wins the lottery, her student loan debt represents a risk upon her death for the next 10-15 years, and I suggested she look into a term life policy to cover this risk. Term life insurance monthly premiums vary by your age, your health and the term, but for her situation and the coverage she needed, she was able to secure a policy for only $12 a month. As she said to me later, “Shannon that’s two less Starbucks lattes I get a month, but at least I know it will protect my parents should something happen to me.”
If you’re curious how much it would cost you, find out here.
The Typical Life Insurance Needs
I think most people realize that they have a life insurance need when they go through life events like getting married and having children; and I typically advise millennial clients in these situations to make sure they are protecting their loved ones with life insurance.In my opinion, getting married doesn’t instantly make you a life insurance candidate. I have clients who are married with minimal debts and substantial savings that feel prepared should one of them die suddenly, so the extra monthly expense of life insurance doesn’t make sense.
However, I do feel as though as soon as you have a child, you have to think about protecting that child should something happen to you. Even if you have a significant amount saved, you don’t know what added expenses could arise when you pass and you don’t want your partner to clean out their savings to cover it. Perhaps the surviving parent will not be able to return to work, or your assets aren’t as significant as you assumed, and the nest egg depletes faster than anticipated.
When I worked at Merrill Lynch, another advisor’s client passed without having life insurance, leaving the surviving spouse and two small children with minimal cash and three real estate properties. It was going to take her time to sell those properties for cash and she didn’t know what she would live off of in the interim.
The younger and healthier you are when you apply for term life insurance, the lower your monthly premiums. However, it only makes sense to buy term life insurance when you actually have people who are financially dependent on you to pay the bills.
Financial dependence could exist when:
- You’re married and your spouse relies on your income to help with paying the bills or paying down debts like a mortgage
- You have children and your spouse can’t afford to take care of them and cover all expenses (think about college!) without you around
- You have significant co-signed student debt that would be left to your loved ones (likely your parents – don’t do that to them)
If you’re still not sure if life insurance makes sense for you, here is a great calculator to help you through the exercise.
Do you have risks?
As a financial planner working with mostly millennials, I think the greatest risks you need to protect against are the financial well-being of a partner or child and debts upon death. If your death would create a substantial cash drain for someone they love, then you should consider term life insurance as a potential solution to ease those risks.Otherwise, I would suggest using that additional monthly payment toward other life goals or to indulge in an extra latte from time to time.
Are you a millennial with life insurance? If so, why? Do you think millennials should have life insurance?
*This post contains affiliate links. You can find more on affiliate links on my disclosure page.
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Debt After Death
When a young person dies
unexpectedly, his or her family could end up with the burden of paying off
student loans. Can that be avoided?
What would happen to all of your debt if
you died?That’s a morbid question, but it’s a pretty important one, even for young adults. Back in 2012, ProPublica told the story of Francisco Reynoso, a gardener from Palmdale, California, whose son was killed in a car accident on the way home from a job interview. Reynoso, who made $21,000 a year, was held liable for paying off his son’s student-loan debt, which numbered in the six figures.
Reynoso’s story is, unfortunately, not a unique one. Millennials are the most educated generation yet, but with all those degrees has come a mountain of debt. On top of that, a shaky economy and changing views of work mean many young adults are working as freelancers or contractors, positions that often don’t come with the benefits that can help families cope with financial burdens should something bad happen.
The conversation about what happens to outstanding debts after death is crucial because not all debt is created equal. While a student’s federal loans would be forgiven if he or she were to pass away, the same can’t be said for loans that are taken out from private lenders. And while the tally of private-student-loan debt isn’t as large as the amount doled out by the federal government, it’s still a large sum—more than $150 billion in total, according to a 2012 report from the Consumer Financial Protection Bureau.* And private lenders are often much less lenient when it comes to repayment.
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Is there any way for families to protect themselves in cases when a young person with tons of debt passes away? Life insurance is a potential safety net. “If the debt is such that it would transfer to a parent or family member, life insurance can provide a very good and relatively low-cost solution for making sure that debt gets paid off and that family member is not left with that burden,” says Yaron Ben-Zvi, the CEO of Haven Life, an online life-insurance provider.
It’s easy to understand why more young adults don’t have life insurance: The process can feel complex and sometimes involves in-person visits to doctors or insurance agents. And approval for coverage can take several weeks. The multiple-step process can feel discouraging. For their part, Haven Life, which currently only operates in Massachusetts, says they’re trying to simplify that process by allowing prospective clients to sign up online and offering immediate decisions about whether or not coverage is approved (though clients will still need to complete a medical exam within three months).
Even for those whose employers provide life-insurance policies, many don’t quite understand the coverage or its limitations. If someone with life insurance dies, his or her policy will likely pay out somewhere between one year to two years’ worth of his or her salary. In some cases, though, that might not be enough to cover outstanding debts. In addition, Ben-Zvi says that some policies aren’t portable across employers, which could be an issue for a generation that switches jobs relatively frequently.
For many Millennials,
insurance isn't a necessity, and might not even be the best response to
managing cosigned loans. But the question of who will be left footing the bill
if something happens is a critical one for everyone—especially young people—to
consider.
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