Life Happens also reports that Millennials "continue to be an elusive target audience for insurers, as they not only presume the costs of life insurance to be the most, but also are willing to spend less in order to protect their loved ones compared to other generations."

Younger Americans say it's perfectly reasonable to bypass life insurance, although there are some gaps in logic attached to that rationale.

"Most Millennials feel their workplace life insurance is sufficient," says Emory Smith, an insurance specialist at EJS Financial Management and a Millennial himself. "But that said, most overestimate the cost of life insurance by a factor of three or more, and most don't understand the uses for life insurance and thus don't know what type of coverage fits their needs."

"Most don't know how simple the steps are to secure life insurance coverage," he adds.

Money matters, too, as always. Smith says most of his Millennial insurance clients are high-income earners who enjoy benefits of life insurance coverage beyond the pure death benefit protection. But many young American adults don't seem to care about that.

"With certain types of permanent life insurance, clients can contribute additional premiums over and above the minimum to enjoy tax free build-up of cash value inside the policy," he offers. "This 'savings' account can be accessed for a home purchase, college education, retirement or any other use. Permanent life insurance still enjoys the tax-free death benefit for designated beneficiaries."

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