Millennials have been blamed for “killing” a lot of industries, but disability insurance should not be on their chopping block. This generation craves financial security, and paycheck protection is a key element of that.
Millennials are adults now.
When you picture a Millennial, do you still picture a teen? Or maybe you imagine a college student. That was accurate years ago, but Millennials have grown up since then.
Millennials were born between the early 1980s and the mid-1990s. This means that in 2020, some Millennials are nearly 40, while the youngest Millennials are reaching their mid-twenties. Millennials are all grown up, and they’re prime candidates for individual disability insurance.
Millennials are starting families – or staying single.
Millennials are old enough to be buying homes and starting families, and many of them are doing exactly that.
But not all Millennials fall into this group. A report from the Urban Institute found that approximately one-third of millennials of Millennials own a home, but the homeownership rate is 8.4 percentage points lower than it was for Gen Xers in the same age group.
Marriage rates are down, too. According to a research paper from the U.S. Census Bureau, Millennials are marrying less than previous generations. Economic insecurity is presented as a common reason.
For Millennials who are getting married, having children and buying homes, the need for disability insurance should be obvious. They need paycheck protection to help them maintain the mortgage and raise their family, even if a disability derails their careers.
But Millennials who don’t fall into this group may need disability insurance, too. For many Millennials, a lack of financial stability is causing them to delay marriage and homeownership. Paycheck protection can help them achieve financial stability.
Single Millennials are especially dependent on their own ability to earn – they can’t fall back on a spouse’s paycheck – so their need for disability insurance is also great.
Millennials have a lot of debt.
Debt may be the cause of financial instability, or it may be the result, but one thing is certain – Millennials have a lot of it. In addition to credit card debt and car loans, Millennials also have a ton of student loan debt.
According to Experian, Millennials have an average of $80,666 in debt, an 11 percent increase since 2017. The average amount of student loan debt is $34,770.
Millennials are already struggling to pay off this debt. If a disability suddenly prevented them from earning an income, the debt would pile up quickly. Disability insurance is the solution to this common Millennial problem.
Millennials often live paycheck to paycheck.
According to Schwab’s 2019 Modern Wealth Report, approximately two-thirds of Millennials live paycheck to paycheck.
Without significant savings or an emergency fund to get them through hard times, Millennials depend on a steady paycheck. Otherwise, they might have to call their parents for help – or even worse, ask to move back in.
According to Merrill, 75 percent of early adults view becoming financially independent from their parents as the key indicator of being an adult.
Young adults want to be financially independent. Their parents, who have to plan for their own retirements, want them to be financially independent, too. But a disability could get in the way.
Millennials have many reasons to purchase disability insurance. Don’t miss out on this opportunity. Get the Millennial Opportunity Kit today.