Compelled largely by the dire impact of COVID-19, millennials have a greater inclination now to buy life insurance than other generations.
Some 45% of millennials report they are more likely to buy life insurance due to COVID-19 than baby boomers (15%) or Gen X consumers (31%).
Two-thirds of millennials surveyed say they have dependents under 18 living in their households. As such, the study reveals 43% of millennials are more concerned than other generations about leaving their dependents in a difficult financial situation if they should die, or burdening others with burial/funeral costs.
The findings are intriguing as the report declares younger Americans are the least likely to be insured but are among the most prepared to purchase life insurance.
“COVID-19 has raised awareness about the important role life insurance plays in families’ financial security. Our research shows 42% of Americans would face financial hardship within six months if the primary wage-earner were to die unexpectedly,” David Levenson, president and CEO of LL Global, LIMRA and LOMA, stated in the study. (LOMA stands for the Life Office Management Association).
He added, “Young Americans, in particular, are at most risk — more than half of Millennials have no life insurance coverage. The good news is 48% of millennials say they plan to buy coverage in the next year. While we know not all will follow through, our industry needs to help these young adults get the appropriate coverage that will protect their families.”
Yet another analysis showed people who bought life insurance during the crisis wish they had held off.
Research from Expertise.com revealed that many young Americans perhaps bought life insurance in a panic during the pandemic and now 21% of them regret it. Of 1,000 Americans surveyed, the report showed that 25% of Americans bought a life insurance policy during the pandemic and within this group, 21% were ages 18-24, 32% were ages 25-34, and 26% were ages 35-44. Only 22% were over 45.
And among those who bought life insurance during the pandemic, 21% now regret it while another 13% preferred not to say. Within that group of 21%, 74% were between the ages of 18 and 44, the results showed.
Checking again with the 21% who regretted their life insurance buy, Expertise.com asked if they will cancel their policy now that COVID-19 appears to be winding down: 9% have already canceled it, 16% indicated they will cancel it eventually, 26% were not sure either way. Some 41% will not, and 9% did not answer.
At the same time, a synopsis by online insurance marketplace Policygenius.com includes insights on why millennials might want to consider acquiring life insurance.