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  • Writer's pictureJamie Smith

Gen Z and Life Insurance

Do you really need to think about Life Insurance yet?

Congratulations! You are young and healthy and have your whole life to adult! Getting old is most likely the last thing on your mind, never mind even considering retirement. Right? Well, there's Instagram, and then there's reality.

The reality is. Adulting sucks. What sucks even more is having to pay for everything you want but really should be paying for more of what you need. So, how can you make the most of what you earn right now to achieve a financially boujee future?

First, let me spill the tea about the types of Life Insurance.

Term Life Insurance

Term life insurance is generally the more affordable option. It covers you for a period, usually between 10 and 30 years. If you die during this time, the death benefit will be paid to your beneficiary. The beneficiary would be someone in your life, a partner, spouse, child, or parent that could use the money in your absence to cover any expenses. The downside to term insurance is that there is no *cash value (see definition in Permanent Life Insurance) after it expires.

Permanent Life Insurance

Permanent life insurance is usually more expensive than term life, as it covers you for the rest of your life, but the premiums will always have to be paid. Permanent life insurance gives you the death benefit and cash value, so as the value of your plan increases, you can take out a loan or withdraw as needed. While these policies are more expensive, they are an excellent option for accumulating wealth and for those with lifelong financial responsibilities.

Cash value is a savings component typically included in permanent life insurance policies. The cash value can grow at a fixed or variable interest rate over time, depending on your particular policy. You can borrow against your policy's cash value in the form of a life insurance loan.

The Death Benefit: The money – lump sum or otherwise – gets paid to your beneficiaries if you die while your life insurance policy is in effect.

The Perks of getting Life Insurance at your age:

  • Number one, your future self will thank you for locking in a lower premium now while you are young and healthy

  • A premium for a mid-forties person is nearly four times the amount than a premium for someone in their mid-twenties.

  • You would be surprised how affordable they are

  • You can create generational wealth leaving a legacy

  • You can ensure no additional debt is left on your parents

  • Provides a financial safety net for your loved ones if you die

  • Investment for your future

  • In a study from 2022, 34% of Gen Z has coverage

Other Options:

Income Protection

Income Protection is a long-term insurance policy that ensures a regular income until you retire or can return to work. After the pandemic, many people lost their jobs during these uncertain times. Income Protection becomes imperative to help ease the burden of a loss of income.

Universal Life Coverage

This is an excellent permanent coverage option because it offers incredible flexibility with premiums and end-of-life benefits. As a result, you can guarantee lifetime protection by paying and maintaining the premium. In addition, universal life provides an investment component that allows for tax-deferred growth and cash value accumulation.

Variable Life Insurance

Variable life is another excellent option since it allows you to save and invest your premiums to build cash value over time. Plus, there are flexible death benefits and tax advantages. Furthermore, the cash component can help build wealth and provide financial protection in the event of an untimely death.

Final thoughts on buying life insurance at your age

There are multiple options for you to choose from at a price point that is comfortable enough to fit your lifestyle. So if you’re in your twenties, there are several compelling reasons to invest in life insurance. Not only will the premiums be cheaper and approval chances higher than if you wait until later on, but other benefits include more significant cash earnings, which can help cover debts, surprise expenses or even act as a down payment for a mortgage loan.

Additionally, if you have any dependents — such as children or an elderly parent — life insurance can provide a financial cushion and peace of mind in the event of your untimely death.

Finally, specific life insurance policies are income tax-advantaged, meaning that any money earned through interest on these policies is exempt from taxation.

Invest in you. With Bedrock, you can!


Want to know more?

At Bedrock Financial Group, we're a Veteran and First-Responder-owned full-service insurance agency. We provide complimentary consultations and no-cost Medicare reviews. Our home office is located in New Albany, IN. We have a Senior Resource Center in Stanford, KY, and another office coming to Asheville, NC. We also offer the following services:

  • Life Insurance

  • Wealth Management

  • Home + Auto

  • Renter's + Condo + Home Insurance

  • Medicare Plans

  • Medicare Advantage Plans

  • Medicare Supplement (Medigap)

  • Hospital Indemnity

  • Final Expense (burial planning)

  • Mortgage Protection

  • Business Insurance

  • Retirement Planning

  • Medicare Enrollment Help

  • + More

We service the following states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Alabama, Connecticut, and West Virginia.

If you have Medicare questions, you can call our team at 502-200-1516. If you want to set up an in-person Medicare Benefits Review, please call 833-905-1060. If you would like a comprehensive overall review, you can call 833-905-1060 or email with your contact information, including your name, city, state, and phone number, and we will connect with you.

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