For you young Millennials out there, the world is your oyster. After all, what’s more exciting when you’re in your 20’s and 30’s than international travel or pursuing your career with an extended stay in a foreign country? However, we shouldn’t forget that there are certain risks involved in all this adventure. In this guest post, the folks at Clements Worldwide explain why it is important for Millennials to have adequate life insurance coverage when traveling abroad.
He did a TED Talk about “How to find and do work you love” that got over 3.8 million views and grew one of the largest communities teaching this topic online. He lived his dreams traveling the world as a young adventurer. But then, disaster struck in a rock climbing accident.
Loose rocks fell on him and he turned his wife-to-be into a widow. Unexpected accidents happen all the time and being unprepared can leave your loved ones with massive financial debt they cannot pay off. Having life insurance can prevent this tragedy from happening to you.
If you are a Millennial, you have probably heard about life insurance but still find it confusing. The basic idea behind life insurance is that you pay a small monthly fee as protection in case a tragic accident occurs. If an accident does happen, your insurance covers costs for your dependents or provides a lump sum.
But is it worth the cost, especially when you are young and healthy?
Here are five reasons why Millennials should consider life insurance when traveling abroad. These will help you avoid the mistakes that other people your age make:
1. Financial Stability For You, Your Partner, Or Your Family
The period after disaster strikes can be unpredictable, troublesome, and taxing for your loved ones. If you have any debts or expenses from housing, travel, or school, those may still have to be paid for. Your family could be put into a stressful period if they have to pay for everything you do on top of their current expenses.
Life insurance gives a healthy cushion so that they can handle their current bills (medical expenses, retirement funds, mortgage, tuition debt, etc.) and pay off any of your debt (car bills, credit card bills, etc.).
Some policies cover more than the primary income earner. It can also include the spouse or significant other. Insurance helps keep your partner safe and financially stable when trouble strikes.
When traveling, there are all sorts of unexpected dangers that can pop up in a foreign country you are unfamiliar with.
2. It Helps Ensure A Brighter Future For Loved Ones
Did you know that funerals can cost upwards of $15,000? Ask yourself if your loved ones could even have the time or money to mourn for you properly.
If you forget to have insurance, you can burden loved ones with unexpected fees in the form of everything from airplane costs to wedding bills to education expenses.
Picture the scene:
You think you will not have a child for a long time. But one day, you discover that your partner is pregnant. These situations happen all the time.
An unexpected tragedy can leave your significant other with hundreds of thousands of dollars to pay off in the form of a future child’s food, clothing, and education costs.
Whether it’s for your bride-to-be, future child, or family, the simplest insurance helps stop suffering from spreading even further.
3. It Covers Costs You Cannot Pay Otherwise
An accident can cause massive bills that are unexpected. These could be costly medical bills or damage and losses that rack up to the tens of thousands of dollars or more.
You never know what could occur in a foreign land. You could get robbed, mugged, attacked, or face an unexpected natural disaster.
4. You Can Lock In A Bargain Price Because Of Your Age
As a Millennial, you get the most affordable rates on life insurance because you are young and less likely to die. If it does get triggered, you often also get a larger amount.
For a 28 year old non-smoker, you can get $250,000 for a 5-year policy for as low as $20 a month abroad.
Because of your youth and health, you can lock in a bargain price for when you are older.
5. It Can Relieve The Burden of A Default Payment
Some students have tuition debts over $150,000. The ability to pay it off over time rather than all at once obviously relieves the burden a bit. But did you know that a death could throw a co-signer (like your parent) into immediate default?
Private loans often have a clause that lets lenders call the entire loan in full if death occurs. That is a huge, sudden burden for your co-signers to pay off that could throw them into years of stress and turmoil. This rule does not just apply to school loans. It can apply to any other debt you co-signed.
It can be intimidating to get life insurance but it does not have to be. Insurance can be a one-time set-it-and-forget-it event that takes place.
If you have debt you or your loved one potentially have to pay off, insurance can really help cushion any disaster that strikes. The last thing you want is to burden your family, friends, partner, or future child with more debt, stress, and suffering. Especially if they cannot handle it.
This is a topic that is never addressed or taught to you because it is not pleasant to talk about. But now, you are well-educated beyond the average person and are safely prepared for what can come.
According to the LIMRA and Life Happens 2016 Insurance Barometer Study, 51% of Millennials are smart enough to own life insurance. Are you going to be one of them?