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Millennials. The new, technologically savvy, ever growing generation of individuals that have started taking over the work force. The generation that companies strive to impress, to reach out to, to pull in.
A millennial is a person born between the years 1980 and 1996. It’s a large group of individuals spanning from the late 20s/early 30s to high school students. Some have already made it into the work force, some are just starting to look at colleges. But the one common denominator is their vast need for knowledge and technology. Companies with many employees who did not grow up in the technological age want millennials to grow the business in ways that will thrive in conjunction with the growing lifestyle.
While this growth is a push in the right direction development-wise, it’s leaving a lot of millennials in the dark about things that predate that technology. Namely, millennials frequently forgo insurance. Only thirty-five percent of federal applicants for health insurance this year were people under the age of 35. Remembering that this is a generation that surpasses even the baby boomers in numbers, that’s not a lot.
The problem is that insurance is seen as old, outdated, boring. In a generation that’s constantly looking for the next big thing, insurance doesn’t make the cut. But knowledge and education are ingrained into the very fabric of these lives, and it’s about time they are educated on what insurance can do for them.
Here are 5 very good reasons to look into buying insurance.
- Insurance is in the business of risks. While a person may be perfectly healthy at the moment, that could change very quickly. When it comes to health, life, and accident insurance, the idea is to help with the costs a sickness, death, or accident may incur. Say a person crashes their car and ends up in the hospital for a few days. If they have health insurance and pay premiums each month, the cost of the hospital room and any surgeries/tests will be less expensive than if they came in with no insurance. And hospitals can charge up to thousands of dollars for their services.
- Millennials under the age of 26 can stay on a family health plan until their 26th birthday. This is good news for families who can afford the coverage because it would save millennials money for a few years. But if families cannot cover their children and the children still need help with coverage, Millennials 30 and under can qualify for a catastrophic plan — which is inexpensive, basic coverage. Everything will be paid out of pocket until the deductible is met, but the monthly premiums will be significantly lower.
- Auto Insurance rates have a tendency to be reduced at age 21 and again at 25, and can also be reduced for good grades, good driving records, etc. Auto Insurance is good to have just in case of a claims situation. For example: rear ending a pickup truck…which rear ends a Mercedes Benz and a Jaguar. Having enough coverage to cover an accident of this magnitude will give peace of mind. And with many discounts out there, it can be affordable.
- Life Insurance can help secure student loan payments in case of a tragic death. If a person should die before paying back a student loan, it’s most likely the family who will be forced to make the rest of the payment. By taking out a life insurance policy, the loan-holder can provide funds so that their family won’t pay for the loan out of pocket.
- Buying a house isn’t typically a priority for millennials, but a lot are moving out of their parents’ houses and renting apartments for the first time. As many as 70% of millennials aren’t taking renter’s insurance. Most likely it’s because of the misconception of price to coverage ratio. Millennials think they’ll pay a lot for coverage on items that aren’t worth much. On the contrary, items like couches and beds can cost hundreds of dollars to replace, and a renter’s insurance premium will cost less than $200 a year. Another benefit of renter’s insurance is identity coverage. If a laptop or smart phone is taken during a burglary, renter’s insurance can protect against financial fraud and identity theft.
Insurance can be bought individually or, for health and life, under a work group policy as benefits. The cost is going to be dependent upon age and location for individual plans, but group plans will offer flat rates based upon everyone in the group. And costs will increase every year; whether from age, growing families, or rate increases. Millennials will have the least expensive rates, and they should take advantage of that while they can.
Millennials won’t have to figure it all out on their own, either. Companies like and including Montoya and Associates have agents available to help navigate through the difficult jargon and numerous options. They will answer questions, facilitate phone calls, and help all the way through the application process. There is no reason to go through the process alone.
By: Lindsay Marsh