Millennials may have most life ahead, have least adequate life insurance

The Millennial generation is the least prepared for unexpected life events due to a lack of adequate life insurance coverage, according to the latest edition of New York Life Insurance Co.’s Life Insurance Gap survey released Tuesday.

The survey asks Americans to compare how much life insurance they need, based on living expenses and plans for their loved ones, with the amount of life insurance protection they have in place, according to a statement highlighting the results.

Millennials being the most exposed contrasts with the 2013 edition of the study, which found Gen X under the most pressure.

Millennials with life insurance have a self-reported life insurance gap of $352,000 in 2018, with enough life insurance protection in place — $100,000 — to cover only 22% of their self-reported coverage needs of $452,000. The Millennial generation’s gap is sharply higher — 60% greater — than the gap for the general population, which is $210,000, enough to cover 49% of the average estimated need, according to the statement

In addition, the survey found that only 10% of Millennials have enough life insurance to cover 100% of their needs, which can include mortgages, funding retirements or financing a child’s college education. However, Millennials feel more financially secure than the overall population, with 81% saying they feel financially secure versus 76% of all respondents, according the statement.