By John Olerio, Director, Senior Vice President, Webster Investments
Only ten percent of Millennials1 can sleep easy tonight. They’re the ones who bought enough life insurance to cover the needs they themselves identified.
There’s nothing unusual about avoiding a conversation about life insurance. Generations have done it since 1759, when the concept was invented—often to their regret.
What’s different for this generation—and those to come—is an array of affordable options to cover a whole range of situations. It’s never been easier to gain more peace-of-mind.
Millennials in particular are right at the point in life where the responsibilities add up fast: a mortgage, kids, planning for education and retirement—not to mention a hefty student loan debt. Perhaps you’re an entrepreneur, invested in your business’ success.
The irreplaceable element is you. Without you, the debts still come due. You don’t want to pass that buck on to your loved ones. You want to ensure that your children’s college plans and your family’s comfort and security—all the things you work so hard for—won’t be interrupted. Life insurance is one way to help take that worry off your plate right now.
Above all, don’t let myths and misconceptions keep you from pursuing the protection you need.
Myth #1: I can’t afford it.
You may be thinking of permanent life insurance (aka whole life), which costs more because it covers your lifetime and may have a savings/investment element. Permanent life plays an important role, especially for business owners. But for the Millennial budget, the versatile answer may be term insurance:
It’s low-cost—surprisingly so. Depending on the term you need—10, 20 or even 30 years—you can find the right premium.
It’s designed to cover needs that exist over a specified period of time, such as a 30-year mortgage, a 10-year student loan repayment schedule or a 5-year car payment plan.
The older you get, however, the more term is going to cost. So based on your age, the solution for Millennials right now is highly affordable. (The cost of procrastination, alas, is not.)
Myth #2: I already get life insurance at the office.
You’re fortunate, then—but that policy isn’t designed for the many specific demands you may face. Just as Social Security provides a base of protection, not all you need, your life insurance at the office is a great foundation, but not the be-all and end-all.
Look at life insurance as part of an overall review of your unique obligations and aspirations. See how much security your real world needs.
How to make an unpleasant topic … really quite pleasant.
Start by going online. You’ll find a host of resources and tools there to give you a good grounding for your life insurance planning.
Then call on us for a professional, objective opinion. Since we don’t sell proprietary products, we can give you objective recommendations. We will help you find the most affordable solutions, based on your objectives, income and assets.
A life insurance review isn’t high on anyone’s fun list. You can think of it as ripping off a band-aid—the quicker you get it done, the less discomfort you feel.
At Webster Investments, however, we go out of our way to make the discussion positive and the whole experience uplifting. After all, it’s a conversation about the things you love, the plans you have, and the hopes you express.
As 2020 begins, call us or come in for a look—and hopefully come away feeling relieved and confident about your financial security.
Securities and insurance offered through LPL or its affiliates are:
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Webster Bank and Webster Investments are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Webster Investments, and may also be employees of Webster Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Webster Bank or Webster Investments. Securities and insurance offered through LPL or its affiliates are not insured Webster Bank deposits and are not FDIC insured. These products are not obligations of Webster Bank and are not endorsed, recommended or guaranteed by Webster Bank or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible. The opinions and views in this blog post are those of the author, and are not intended to provide specific advice or recommendations for any individual.
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