The Three L's for Millennials


Millennials face many changes as they move away from home, one of which is finding their own insurance.  Once millennials move out of their parents’ home, they are no longer eligible to be insured on their parents’ insurance policies because they do not meet the definition of “resident relative.”  We think the following three topics are critical for millennials to consider as they start planning their own finances, including their insurance protection.

1)      Liability, liability, liability.  This is just as important to insurance as “location, location, location” is to real estate.  Millennials may not have accumulated significant wealth yet, but they often have substantial future earning potential.  These future earnings can be garnished as part of the settlement if a court awards a lawsuit judgement that exceeds the liability coverage limit on a millennial’s insurance policy.  Instead of risking their future earnings, millennials should simply carry higher liability coverage limits on their insurance policies.  The cost is often minimal. 

2)      Life Insurance.  Your health is what truly buys the policy; your money just pays for it.  Millennials may not have a large budget for life insurance, but they generally have an asset much more valuable than money: health.  Just ask a 40 or 50 year old that needs a new life insurance policy but can’t qualify for it because of a medical condition that developed later in life.  Millennials should apply for life insurance while they qualify for the best rates available.  It will only become more expensive to buy and more difficult to qualify for as millennials age.  

3)      Long-term perspective.  Although millennials spend significant time doing independent research online, studies show that they value the advice of an expert more than any other generation.  Millennials should find an insurance agent that will be around for another twenty or thirty years to advise them as their financial position and the insurance products protecting it change. 

This article was written by Brian Boer.  Email Brian with questions or comments at