Growing up is not an easy task. Many millennials have never been told how to deal with simple life tasks, such as pursuing health insurance.
A study by Vertafore, a leader in insurance technology, highlights how complex the issue of insurance is to millennials. For many, the risks of not having insurance are there, while the finances required to be insured are not. Millennials are 14 percent less likely to own health, renters, home, life, and disability insurance compared to older age groups.
17 percent of millennials don’t have drivers insurance, while 58 percent don’t have renters insurance, 20 percent don’t have healthcare insurance, 81 percent don’t have disabilities insurance, and 20 percent don’t have home insurance.
While millennials are aware of the risks of not being insured, other spending categories fight for their money. The study finds although millennials are willing to work insurance into their budget, it won’t be at the expense of Netflix, cell phones, or dining out.
34 percent of millennials surveyed said they spend 100 dollars a year on streaming services like Hulu and Neftlix, while 38 percent said they spend it on craft beers, wine, and liquor. Only 19 percent and 16 percent said they spend it on life and renters insurance, respectively. The importance of cell phones in millennials’ lives is apparent when asked if they’d give up health insurance or their phone for a year. 88 percent chose to give up their healthcare insurance if the situation presented itself.
Another example in the study of how much finances decide whether millennials are insured is that older millennials between the ages of 26 and 35 were more likely than their younger counterparts to have disabilities insurance. More than half of younger millennials are under their parent’s healthcare plan. This puts them at risk of losing their healthcare insurance if the Affordable Care Act is repealed. A fifth of millennials expressed their fear of losing insurance after the 2016 election. Millennials who purchased healthcare insurance through an exchange would also be at risk if ACA was repealed.
Republicans pushing to repeal the ACA could reassure millennial fears by providing a less complex insurance alternative.