Hello, fellow kid!
If you were born after 1997, then you are in a generation that we lovingly refer to as "Gen Z." Gen Z is young, yes - and because they're young, we generally assume they're healthy.
So, as part of this generation, you may be thinking, "Why would I need life insurance?"
Well, we're going to frank with you. Please forgive us, as this may come as a bit of a shock...
Just because you are young doesn't mean you can't die.
Life insurance is there to protect your loved ones financially if anything happens to you! Generation Z is currently out there doing all the major life things that usually lead people down the road to life insurance. You may be recently engaged. (Grats!) You be married. (Grats!) Or you may have young children -- in which case life insurance is absolutely key.
Even if that’s not the case for you yet, life insurance can still be a great way to start accruing wealth to pass on or use later in life. It’s also a safety net to ensure you don’t leave unpaid debts to your family if you die.
So let's take a look at the Perks (in Green) and the Cons (in Yellow) of purchasing life insurance as a Young Adult.
The Perks
Life Insurance provides a financial safety net for your loved ones when you die.
Members of Generation Z have loved ones, just like every generation before and every generation after.
If you died today, your spouse or living partner or child (or whoever!) would still face daily living expenses. And what if your spouse outlived you by 10, 20 or even 30 years? Would your financial plans, without life insurance, enable the people that you love to maintain their lifestyle?
This is the basic, fundamental question that leads most people to purchasing life insurance. It's a very compelling argument. And rightly so.
You can lock in lower premiums now, when you're young.
Maybe you're thinking that you will probably buy Life Insurance at some point in your life, but not now...
Well, what if we told you that today is the cheapest your premium will ever be?
It makes sense, if you think about how premiums are calculated.
It's affordable -- depending on what plan you use.
You can start creating wealth. And leave behind a legacy.
Wouldn't it be nice to not only be able to be able to cover the basic expenses that will come up when you die, but also to leave the world a little better than you found it? This is what we're talking about when say "legacy."
Think of an institution that you love. You can craft a policy that leaves them a large sum of money. How great is that?
You can pay off your student loans, instead of making them your parent's problem.
The Cons
It can actually be more expensive than you expect.
You might not ever have to actually use it.
This is listed as a con because, well, it kind of sucks to pay a lot of money for a thing that you never actually use.
But, seeing as how not using it means that you outlived your policy -- this is also kind of a pro?
It's really complicated and frustrating to get insured.
It's true! Getting insured means having to answer a lot of questions. It also means having to foresee into the future in a way that you may not be used to.
This is why it's, ultimately, the work of a dealer agent to guide you through this process. It's just as much about logistics as it is about the emotions of sorting through all this stuff.
According to data from the 2022 Insurance Barometer Study, the need for life insurance is high among Gen Z—just 34% have coverage. When it comes to their reasons for not owning life insurance, uncertainty about products is much higher among this generation, and they are more likely to say they would not qualify for coverage.
The more things change, the more they stay the same.
As companies go more digital across the board to appeal to younger audiences, it may seem like Gen Z would want an entirely online process for getting life insurance. But the same Barometer Study shows that they’re actually the most likely of any generation to say they would research insurance online, but ultimately buy in person. Gen Z still wants some face-to-face interaction when it comes to this important decision.
If this sounds like you and you’re looking for help in the process, we recommend speaking with an insurance professional. Fill out the form below to get started. An agent can help you compare products and insurance companies so you can find the best solution for your situation.
How do I find a professional to talk to about this?
There's no better way to move forward with purchasing life insurance than to reach out to a qualified professional. The Hanna Agency has one endeavor, and that is to educate people about their choices. We are not trying to sell you insurance. However, we are able to, under certain circumstances, to do so, if that is what you want.
There are many ways to reach out to us. The fastest might be using the form below:
