Most millennials value life insurance, but cost and confusion are holding them back

The generation appears split on some key components of life insurance.

Life insurance is an often misunderstood and perhaps undervalued part of wealth protection and financial planning, but core-working-age Americans value it.

In a recent survey 82% of millennials said they see life insurance as important and 48% say they want it. However, 52% do not currently have cover according to the research from Insuranks, despite half of respondents saying they would struggle with finances within 6 months of their significant other passing, one in six would struggle within a month.

Two key barriers to arranging life insurance cover emerged from the study, cost and confusion. Two thirds of poll participants said premiums were too expensive including 54% who said the cost of other insurances meant they could not afford a life policy. Meanwhile, 59% are overwhelmed by the life insurance process.

Three in ten respondents said they wish they had done so when they were younger, with 27 the average age of taking out a policy while 19% did so before they were 21.

LIFE MILESTONES

Of those who do have a policy, a third did so when they started their first job, 27% when they started a family, and 14% when they got married.

But along with protecting loved ones, life insurance policies can have other benefits for older Americans such as helping them mitigate inflation with life settlements.

The value of life insurance offered through an employer is clear with a quarter saying they took out a policy through their work because it was free or low cost. Average monthly premiums for those with a policy via work was $29 while for those with a policy outside of work it was $56.

As well as cost, millennials want flexibility from their life insurance policies, and will also consider brand reputation, customer reviews, and deductible options when selecting an insurer.