Millennials' Money Delusions: Here's What They're Missing

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Young woman in office of healthcare worker
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By Shana Lebowitz

What does a millennial have in common with Superman? They're both indestructible.

Well, at least that's what young adults seem to think.

A new survey finds millennials are less likely than any other age group to be protected by health insurance -- even though federal law requires all Americans to get coverage.

The survey, commissioned by InsuranceQuotes.com, found that as many as 24 percent of consumers between the ages of 18 and 29 lack health insurance, compared to just 12 percent of adults over 30. And millennials who do purchase health insurance usually opt for the most basic policy possible.

What's more, results showed that millennials are actually less likely to purchase any kind of insurance -- including automobile, renters or homeowners, life and disability.

That's why it's especially surprising that 60 percent of millennials said they were either very or somewhat confident about their ability to handle the financial impact of an unexpected event, such as a car accident or becoming disabled. In fact, millennials were more self-assured than any other age group except those 65 and older.

It's hard to say exactly what's driving millennials' laid-back attitude. On the one hand, it might just be a classic case of young-adult overconfidence. But, on the other hand, there may be more generation-specific factors to consider. When it comes to health insurance, some might be disinclined to purchase coverage because they think they'd basically be subsidizing older and less healthy Americans, financial psychologist Kit Yarrow told InsuranceQuotes.com.

Other millennials may feel like they don't have the funds to spend on an insurance policy, especially if they're drowning in debt. Among consumers ages 18 to 29, the top reason for not purchasing life insurance was that they couldn't afford it.

Thinking about getting health insurance? Fall marks the beginning of the open enrollment period at most companies, when employees can make changes to their benefit selections.

And as for all other kinds of insurance you buy for yourself, don't automatically assume it's out of your budget. Take the time to get quotes from different providers to see which policy best fits your financial situation. You might be pleasantly surprised: After all, a relatively young, healthy person can pay less than $75 a month for a 20-year, $1 million term life insurance policy.

Bottom line? You never know when an unexpected event could wipe out your savings account and leave you wishing you'd purchased a policy earlier.


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8 Comments

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ncarreonjr

Ignorance is bliss.

September 01 2014 at 9:54 PM Report abuse rate up rate down Reply
scottee

pay attention people....everything becomes distorted in a manipulated economy. our economy is manipulated by the federal government. hold your politician accountable.

August 31 2014 at 7:42 PM Report abuse rate up rate down Reply
Thomas Rockford

Millenials are shaping up to be the wussy generation. I graduated college in 1994. I took a job for 26k and had 30k in student loan debt. I lived in my buddies unfinished basement for 2 years while I scrimped/saved to pay down my loan debt, save a nest egg and buy my first condo - at an 8.5% interest rate on a 30 year.

I continued to scrimp/save in order to completely pay off my debt, then purchased a bigger home. I moved up the ladder in my profession, I saved my money and today my family and I are just fine and continue to improve financially. We have our home, a vacation home, a couple of fuel efficient cars (all insured for $25/month with Insurance Panda), and what’s best - they are all paid in full. Ahhh the beauty of hard work and patience!

Millenials want free education, 6 figures straight out of school with a "work/life balance" and 0 risk investments.

Bust your butt, take some calculated risks and climb the ladder like generations before you. Despite what many will lead you to believe, the world owes you nothing. You owe yourself.

August 30 2014 at 5:38 PM Report abuse +1 rate up rate down Reply
chic773

Why would you buy renter's insurance if all you own is temporary first apt IKEA furniture? Sure they have a tablet or an electronic device or two, but with the momey they saved by not paying premiums, they could buy a new one if something happened. No need for life insurance for 18 year olds unless you they have kids. It's like travel insurance. I travel a lot, and nothing has ever happened, so, if something does happen in the future, it will cost me less, in the long run, than all those insurance payments I would have made over the years. Also, a LOT of stuff is covered with your credit cards..check your CC agreements!

August 29 2014 at 1:10 PM Report abuse rate up rate down Reply
John McBrearty

How can people afford insurance, when they can't afford life.

August 29 2014 at 10:50 AM Report abuse rate up rate down Reply
artemis923

Give us some jobs and we'll buy insurance. Otherwise we'll use the money to eat. Heard on the train the other day, said by a 20 year old to another one: "Wait, they just gave you a job? You realize most of us have to hunt for half a year to find a job?" Yeah, we're SO spoiled and entitled. A huge percentage of us still don't have work, or work multiple jobs for min wage with no benefits. I hope your retirement funds dry up.

August 29 2014 at 9:43 AM Report abuse +1 rate up rate down Reply
1 reply to artemis923's comment
Viv Beatty

If mommy and daddy's retirement funds dry up, then whose basement will you live in?

August 30 2014 at 5:16 PM Report abuse +1 rate up rate down Reply
jdykbpl45

Yet another shill article in Huffington Post from the insurance industry.

August 29 2014 at 7:33 AM Report abuse +2 rate up rate down Reply