The Big Reason Gen Z and Millennials Should Get Life Insurance
Let’s be honest: For most members of Gen Z (and even many millennials), the concept of life insurance can seem like a wildly unnecessary expense, a financial safety net designed for people near the end of their lives.
This can be especially true for members of Gen Z just beginning (and sometimes struggling with) their financial independence. If someone is still renting or putting off marriage and kids because of the financial burden, then paying monthly premiums on a life insurance policy that might not be used for decades can seem all the more extraneous.
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According to Fortune, many younger adults are doing exactly that — putting off important life milestones like home ownership, marriage, children and especially life insurance — because of high housing costs, dizzying inflation and low, stagnant wages. Of those milestones, life insurance can seem all the more unnecessary if there is no spouse or children to benefit.
That said, there is a major reason to rethink that blasé approach to life insurance — you may need it more than you think.
Life Insurance Can Aid You Financially While You’re Still Alive
A major misconception about life insurance is that it’s something that only benefits your loved ones after you die. That simply isn’t true, though. Some policies offer living benefits — that is, benefits that can help you while you’re still alive. Certain policies build in cash value over time and can later be borrowed against or withdrawn from for major expenses. In fact, you can even withdraw the cash value from your policy to help purchase your first home.
This is an important distinction for younger adults to realize — life insurance isn’t just to protect loved ones after death, but rather it can serve as a financial asset to aid members of Gen Z as they begin to make the first major purchases of their lives. Withdrawing against the life insurance policy can help you have enough for a down payment on a first home or a safe SUV for your family.
Having a life insurance policy can actually make it easier to make other major financial decisions in your life.
The Bottom Line
For Gen Z and millennials who are already struggling with high costs (and delaying major life milestones as a result), life insurance can often feel like an unnecessary extravagance that won’t be needed for years to come.
However, life insurance isn’t solely designed to protect your loved ones after your death — it’s a useful financial tool that can actually help unlock the very decisions you’ve been putting off. Some life insurance policies offer usable financial value during your life and skipping life insurance can also mean skipping access to a greater financial flexibility you didn’t even realize existed.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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