Millennials, also known as “Generation Y”, are the generational demographic born between 1981 and 1996. Millennials are known for being tech-savvy, civic-oriented, frugal, attention-craving, progressive, and impatient. Millennials are waiting longer to enter the workforce, buy homes and have children. They are also crippled by student loan debt and living in cities where the cost of living is high. It’s no surprise then that many are also waiting longer to purchase life insurance. There are plenty of other financial priorities that Millennials are prioritizing. But because life insurance is cheaper when you are young and healthy, Millennials should consider buying a policy now.

Four Reasons Why Millennials Need Life Insurance

Co-signers. Do you have a co-signer on your student loans, apartment or car? If so, they would be on the hook for paying off that debt if you died. Consider making them a beneficiary on your insurance policy to ensure they’ll have some help paying off those debts.

Funerals are Expensive. Funerals can cost up to $15,000 depending on where you live. The simplest life insurance policies can help prevent putting that burden on loved ones. Also think about creating a will and testament. Let your loved ones know what you want so they don’t have to worry about it.

It’s Cheaper Now. Life insurance costs more the older you get. A healthy 30 year old can find a $1,000,000 20 year term policy for roughly $300 per year –that’s just twenty five dollars a month! You can always change your policy later in life.

Your Employer’s Insurance May Not Be Enough or Right For You. If you’re lucky to land a job that offers a benefits package, you may already have some type of life insurance. If you don’t have children, the coverage you get at work may be enough. But if you already have a family you might need to purchase more. Also, the coverage you get at work may be more costly than a policy you could get on your own. If you were to get sick or injured and unable to work, a separate policy would cover you if your employer’s policy lapses. A separate policy would also cover you in the event you’re laid off, change jobs or your employer goes out of business.

So why aren’t Millennials buying life insurance?

Not much patience. Unfortunately many young American think they’ll have to go through a long and tedious process involving intrusive health questions. They also don’t want to be bugged by a pushy insurance agent so they avoid the process altogether. While you can’t always avoid the insurance agent, the process of getting life insurance at a young age may actually not be long and tedious, especially if you are young and have minimal health issues.

A false sense of security. Studies have shown that Millennials overestimate the cost of term life insurance by three or four times. They also think it’s an unnecessary purchase because they don’t want to, or like to, think about their eventual mortality. Add onto that the growing popularity of fundraising websites such as GoFundMe.com, many Millennials think that there will always be a safety net in the event of an untimely death.

Those darn student loans. Another reason why life insurance isn’t at the top of a Millennials to do list, is a lot of them have student loans. This generation has more student loan debt than any other generation in history. That cost, added to the increased cost of living, means Millennials are prioritizing short term expenses that can’t be avoided at the expense of not having life insurance.

They’re saving for other things. Again, life insurance just isn’t at the top of list for Millennials. A lot of young people are putting their extra cash towards saving for a house or car. A down payment for a house isn’t what it used to be, so Millennials need to save even more before they can purchase a home. Life insurance may not even be on their radar until they’ve moved in, married, and had a kid.

The bottom line is that life insurance is something you’d rather have and not need, than need and not have. Millennials have a ton of different financial goals and priorities and sometimes life insurance just doesn’t make the cut. But at their age, life insurance is relatively inexpensive compared to what it would cost if they waited. The process to purchase life insurance at a younger age is usually an easier process especially if they don’t have a lot of health issues. Just talking with an insurance broker can be intimidating but it’s worth picking up the phone and starting the conversation.