A Guide to Life Insurance for Millennials

Forget what you’ve heard about millennials wasting their money on lattes and smashed avocado on toast.
Research shows that millennials (the generation born between 1981 and 1996) are financially savvy: 68% are budgeting, 44% are actively saving for a house deposit and younger consumers are cutting their spending due to cost of living pressures. So how does life insurance fit into the financial picture for millennials?

When you’re battling with the high cost of living, life insurance might seem like one expense you can do without.

Here are some reasons why you might want to consider a closer look at life insurance.

1. There’s more to life insurance than death: Products such as income protection, total permanent disability (TPD) and critical illness/trauma insurance can cover you for living benefits if you’re critically ill, or unable to work for an extended time due to illness or injury.

2. Lower savings: If the unexpected were to happen, a lack of savings could leave you financially exposed. Income protection can help fill the gap and keep your plans on track.

3. Paying off debt: Between credit cards, student loans and high rent it can be easy to accumulate debt. If you’ve bought a home, you may find yourself with a larger mortgage than previous generations, with less time to pay it off. Life insurance may help cover these debts.

4. Starting a family: Children need care for a long time, and there are many things to consider about their future; income protection, critical illness and life insurance may provide valuable financial support for you, your partner and your kids.

5. Protecting your independence: Life insurance products can help protect your financial freedom. When you are your own best asset, don’t underestimate the importance of investing in yourself.

If you’re interested in finding out how life insurance can help you, both within and outside superannuation, HPartners can help you tailor a financial plan that suits your individual needs and financial goals.

Talk to us today.

References:
Research: Young Aussies hanging on to the home ownership dream – ubank
Australians in their early thirties and renters feeling most pressure from rising cost of living

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.