The millennial woman’s guide to life insurance

ACCORDING to recent findings published by Pew Research, millennial women — of the generation born between 1981 and 1996 — are more likely than their male counterparts and women of previous generations to have higher-level education, be engaged in the formal workforce, and to plan for the start of a family.

These qualities not only set them apart as a group that values a unique mix of professionalism and familial bonds, but as one that is primed for opportunities to create wealth and plan for the long-term protection and well-being of their and their family’s needs.

Life insurance can be a significant factor in providing for these needs. For those contemplating a financial foundation based on proper risk management and protection for those you love, life insurance should be part of your overall financial portfolio. The good news for young women is that life insurance is significantly more affordable at this age.

Sagicor Life financial advisor, Nneka Alveranga, breaks down the reasons millennial women should include life insurance in their plans.

It creates wealth for the long term

Alveranga said most life insurance policies are linked to an investment component, which affords people the opportunity to invest in assets, such as stocks and bonds, which will yield meaningful returns over time. Some policies also allow for an accumulated cash value which can be used to supplement your retirement or be used as collateral in securing a loan.

Aids in real estate acquisition

Life insurance policies can come in very handy when purchasing a house as financial institutions may require that you have a policy that will cover the cost of your mortgage. This will serve to protect your loved ones and dependents from the burden of repaying the mortgage in case of your passing.

Provides financial protection for your loved ones or dependents with final expense coverage and income replacement

In addition to coverage of expenses related to funeral costs, Alveranga says life insurance can also support the family by covering final hospitalisation costs as well as be used to cover debt such as student loan. It will also help your family maintain a suitable lifestyle and continue the care of your loved ones by replacing your income. Noting that some millennials may believe this reality to be far into the future, she said it is recommended that people take out a policy that is valued at 10 to 20 years’ worth of their income, to support the financial needs of their dependents.

Provides critical illness coverage

Alveranga said having critical illness insurance can protect you and your family from loss of income due to illness, high medical bills that can deplete savings and assets, and provide you with the funds needed to get the best treatments possible.

Allows you to choose additional benefits as ‘riders’

She also noted that most insurance plans allow people to add facilities, known as riders. These provide the added benefit of coverage for newborns as well as for conditions such as pregnancy complications, which is ideal for women planning to have children. Other riders include disability waiver and accidental death and dismemberment.

Alveranga encouraged people interested in getting life insurance coverage to acquire the services of an insurance advisor, to properly guide them through the process.