Millennial money myths: The insured generation?

Busting Millennial money & insurance myths

What do Millennials really think about money and insurance?

Let’s smash some common financial myths 

You probably know that Millennials can be stereotyped as the avocado-loving generation, who are all about the here and now. Unlike older Gen Xers and Baby Boomers, Millennials change jobs more often, care less about building a nest egg and are not exactly rushing out to buy a house or start a family.

The simple take? Millennials don’t really care about the future and are not interested in managing money, insurance or general finances. Let’s look at what Millennials really think about money and insurance.

The facts about Millennials and money

It’s true that Millennials aren’t following in the footsteps of older generations when it comes to big life events. Getting married, buying a house and having a baby are happening later in life, if at all. So Millennials aren’t taking up insurance and financial products as early as their parents.

But that doesn’t mean that Millennials don’t care about their financial future. 

Deloitte’s Global Millennial Survey shows that Millennials are financially savvy and literate, with more than 50% of respondents saving money. If you’re a Millennial, you’re probably saving more than your parents. Lol.

Millennials are also more likely to have a budget. After Pay found that 80% of Millennials have a budget, compared to two-thirds of older respondents.

Far from irresponsible spenders, Millennials are working hard to juggle competing financial burdens. With insecure work, rising unemployment, high property prices and increasing higher education costs, if you’re a Millennial, you’re living in a completely different world to your parents.

Millennials: the most insured generation?

Now, if Millennials were truly the spendthrifts the media loves to portray, they would not be the fastest-growing insurance market. Making up 44% of the workforce, Millennials currently represent 23% of total insurance premium value according to Roy Morgan, with that share only set to grow.

According to Gen Re, while only 16% of Millennials hold life insurance, 58% have travel insurance, 54% are covered for home contents and 37% have private health insurance. So, if you’re a Millennial it’s likely you’re no stranger to insurance and you already understand the importance of securing your financial future. 

Superannuation and the insurance gap

You might be one of the many Millennials who rely on your super fund to cover you for loss of income, permanent disability and death. While super funds provide generic cover, you probably don’t have the cover you really need.

A coverage gap is a difference between the insurance coverage you’re paying for and the coverage you actually need. Super funds usually provide a minimum level of cover that may not match your lifestyle. This puts your family at risk should the worst happen.

If you’ve already taken the time to protect your health, your home contents and your travel plans, it makes sense to ensure your family is fully covered if anything happens to you. Life insurance gives you one less thing to worry about.

Ease your mind with one quick check

Reviewing your life insurance is not as hard as you think. Give one of our life insurance advisers a call and we’ll do the hard yards for you. We’ll be upfront about your current insurance coverage and give you super simple advice to help fully protect your family.