Although the majority of millennials said they need more life insurance, only 11 percent of those between 18 and 34 years old said they're very likely to buy it, according to 2015 study by insurance research and consulting firm Limra.
"We know that as a generation, they are getting married later, buying homes later, having babies later," said Todd Silverhart, Limra's director of insurance research. "Their needs for insurance are being postponed as well."
The majority of millennials, like Kronick, also said life insurance was too expensive and they had other financial priorities that far outweigh buying it.
"Living in New York City is pretty expensive," said Kronick, who shares an apartment with roommates in Brooklyn. "The extra expense could hurt my budget."
Sixty-seven percent of millennials cited keeping up with daily expenses such as rent, groceries and paying the electric bill as financial priorities over purchasing life insurance, according to Limra. Twenty-six percent said saving for a vacation was more important.
"It's concerning to see that while many adults think they need life insurance, a significant portion are putting off purchasing a policy," said Yaron Ben-Zvi, CEO of Haven Life, an online term insurance provider. "Our research also uncovered that 67 percent of those surveyed would leave behind debt if they died today, thus potentially putting their families in a difficult financial situation."
Unlike the traditional way of purchasing life insurance, which requires meeting with a salesperson and undergoing a medical exam, Haven Life lets users apply for and receive life insurance coverage online — a process that aims to attract younger consumers. The site also has a life insurance calculator to determine how much coverage is needed. Otherwise, a financial planner can help determine the amount and type — and how to figure it into the budget.
Research shows that millennials, who are saddled with hefty student debt thanks to rising tuition costs since the recession, have struggled to set money aside for other purchases — from life insurance to buying a home. On average, student borrowers who graduated this year owe more than $35,051, according to Mark Kantrowitz, a student financial aid policy expert and publisher of Edvisors.com.