Editors' pick: Originally published Feb. 16.
Two new studies out show that younger Americans would much rather travel, engage in a fine dining experience or buy a cell phone, among other purchases, rather than buy life insurance.
The data come from Vertafore, an insurance technology provider based in Bothell, Wa., which surveyed 450 millennials aged 18 to 35. Vertafore discovered "that although Millennials understand the importance of being insured, often times they willingly forgo coverage to avoid parting with luxuries such as TV streaming services, cell phones, or going out."
The study reports that although a majority of Millennials believe insurance is complicated and expensive, "more than three-quarters (77%) do understand that not having insurance is risky."
"Despite common misconceptions that Millennials are unaware and uneducated about insurance, our research clearly shows they value insurance but financial barriers and personal spending habits inhibit securing proper coverage," said Bruce Winterburn, vice president of industry relations at Vertafore. "As we begin the new year, now is a great time for millennials to align what they know to be true with the actions they take on insurance coverage. Their future finances depend on it."
Meanwhile, another study from Life Happens, an insurance industry consortium, reports a huge disparity in what Americans consider important, in relation to life insurance. "Americans pay $120 annually on cell phone insurance to protect an item that costs around $570 dollars at retail value," the report states. "Yet, 64% of Americans are unwilling to spend just a bit more -- $156 annually -- on level term life insurance policy to protect something priceless: loved ones."