Life Insurance Without Life Value: Why Young People Are Snubbing Financial Advice

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Life Insurance Without Life Value: Why Young People Are Snubbing Financial Advice

Life Insurance Without Life Value: Why Young People Are Snubbing Financial Advice

This article is written by a 27 year old female (borderline Generation X / Y) called Rachel. Rachel spent six years at university, has no outstanding debts with the exception of government student loans. Rachel also has no pension plan, no life insurance, savings or property investment. Despite reports of average starting salaries for graduates beginning at £18,000, some even at £25,000, Rachel started on £14,000 three years ago, despite gaining a First Class Honours and offering extensive work experience.

This isn't therapy through Microsoft Word, but it's not uncommon to read reports of "apathetic youth" in the media. For driven young graduates who didn't quite land where they expected ? it is a little frustrating to be branded "ignorant", when it is already difficult working off university debts and fighting your way onto the career ladder in a very competitive market.

What is the point of having independence in old age, if you cannot experience it in youth? That is not to say young people should be encouraged or supported in their debateable extravagance, only that we remain unconvinced by old age. We may have seen our parents lose money in shares or private pension funds, or get divorced and lose money through property. We may be worried about global warming and in an age of suicide bombers, we may not even be confident about how much control we have on our lives anyway. With so much choice on what we can do, but so few people empowering us with confidence, we may well rebel for years to come ? chopping and changing until we find something that fits or until we get tired.

It's too easy to brand young people as apathetic just because they haven't got pensions or life insurance. Smug thirty-somethings who received full grants, graduated in a less competitive market and bought property when the house market was low are quite happy to "tut tut" at their twenty-something shadows in their lack of financially savvy experience, but today's twenty somethings are being squeezed from all angles:

* Student loans replace university grants
* Commercialisation of university life, with banks and credit card companies actively courting student customers
* High property prices
* Very competitive job market

What we need are comprehensive financial research sites that provide information which directly relates to our circumstances. Websites such as moneynet ( http://www.moneynet.co.uk ) with their product price comparisons and finance guides (especially the student finance guide) ?do go most of the way, but we want something that also takes into account our aspirations, situations and will go the distance. We're not adverse to pensions, life insurance and mortgages, but if we're going to splash out lots of dough, it has to be a reasonably reliable investment and we remain unconvinced from we've seen so far in provocative, panic-stirring media.

It's true that products such as life insurance would at least protect our families from our debts and that's important, but with regard to pension, who's to say that in our old age, we may not revert back to student lifestyles ? living in communities and on budgets.

Resources:

Google and the search command "define: generation X" or define: generation y" for age reference

http://www.abi.org.uk/Display/File/Child/237/June_2004.pdf (The source of inspiration for this article!)

About Rachel:

As well as the information in the article, Rachel writes for the personal finance blog Cashzilla. Please feel welcome to comment on any of the article, Cashzilla may bite, but Rachel doesn't!

Web: http://www.cashzilla.co.uk

E-mail: rachel@positiveinterest.com

In The News:

Yahoo! News: Top Stories

Dow drops nearly 680 on consumer spending worries (AP)

AP - The reality that the nation is indeed in recession and that the downturn may well be prolonged sent Wall Street plunging Monday, hurtling the Dow Jones industrials down nearly 700 points and wiping out more than half of last week's big gains. All the major indicators fell more than 7 percent, with the Standard & Poor's 500 index down nearly 9 percent.

Obama announces Clinton, Gates for Cabinet (AP)

AP - Barack Obama announced a national security team Monday headed by Hillary Rodham Clinton, who fought him long and bitterly for the presidency, and Robert Gates, the man who has been running two wars for George W. Bush Â— striking choices by a president-elect who declared he wanted "strong personalities and strong opinions."

Bush uses final 50 days in office to tout legacy (AP)

AP - President George W. Bush says history will judge him, but he is getting his own crack first. Bush is using his final 50 days in office to tout his legacy, hoping to leave a lasting impression of overshadowed progress. On Monday, World AIDS Day, Bush was heralded for his leadership in fighting the disease, a point that even his Democratic critics readily concede.

Estranged relative arrested in Hudson killings (AP)

AP - Jennifer Hudson's estranged brother-in-law has been arrested in Illinois in the deaths of the singer's mother, brother and 7-year-old nephew.

India demands strong action from Pakistan (AP)

AP - India demanded Monday that Pakistan take "strong action" against those behind the deadly Mumbai attacks, and Washington pressured Islamabad to cooperate with the investigation.

Palin implores Ga. Republicans to back Chambliss (AP)

AP - Alaska Gov. Sarah Palin urged Georgia voters to back Sen. Saxby Chambliss in Tuesday's runoff in an election eve appeal that underscored her popularity within the Republican Party and the GOP's efforts to stave off erosion of its shrinking Senate numbers.

Parents: Slain anchorwoman was sexually assaulted (AP)

AP - The parents of the television anchorwoman who was beaten to death said Monday there is evidence their daughter also was sexually assaulted, and that she broke her hand fighting her attacker. Five days after a suspect was arrested in the Oct. 20 beating of KATV anchorwoman Anne Pressly, Guy and Patti Cannady said on NBC's "Today" that the family still has many questions about the killing.

1 in 5 young adults has personality disorder (AP)

AP - Almost one in five young American adults has a personality disorder that interferes with everyday life, and even more abuse alcohol or drugs, researchers reported Monday in the most extensive study of its kind.

Man says God ordered him to ram vehicle at 100 mph (AP)

AP - A man who rammed his truck into a woman's vehicle on a highway early Friday told authorities he crashed into her while going more than 100 mph because God told him "she needed to be taken off the road."

Burress appears in court, has bail set at $100,000 (AP)

AP - Taken to court in handcuffs, Plaxico Burress posted $100,000 bail on weapons possession charges Monday as a frenzy grew around the case of the Giants star receiver who accidentally shot himself in a nightclub.

Obama names Clinton, Gates to lead foreign policy (Reuters)

Reuters - U.S. President-elect Barack Obama named former rival Hillary Clinton as secretary of state on Monday and said Robert Gates would remain defense secretary in a national security team charged with recasting America's leadership role in the world.

Stocks slide as economy, Bernanke raise fears (Reuters)

Reuters - Stocks tumbled on Monday as news pointing to the deepening economic slump around the world erased much of last week's sharp gains, with financial services companies and retailers among Wall Street's biggest casualties.

India demands Pakistan act decisively on Mumbai attack (Reuters)

Reuters - India demanded Pakistan take decisive action over deadly attacks in Mumbai it said were carried out by militants from its nuclear-armed rival, while the West urged cooperation to ease tension.

Bush calls flawed Iraq intelligence biggest regret (Reuters)

Reuters - President George W. Bush said the biggest regret of his presidency was flawed intelligence that Iraq had weapons of mass destruction and told ABC "World News" in an interview airing on Monday that he was unprepared for war when he took office.

U.S. in recession, Europe backs spending hikes (Reuters)

Reuters - The U.S. economy has been in a recession for a year, the nation's business cycle arbiter declared on Monday, while European leaders vowed to step up public spending to try to cushion a deepening downturn.

House to push $500 billion stimulus bill (Reuters)

Reuters - U.S. House of Representatives Speaker Nancy Pelosi met leading governors on Monday to discuss the size and shape of an economic stimulus package that one Democratic aide said was likely to cost around $500 billion.

Thai protesters consolidate hold on airport (Reuters)

Reuters - Thai protesters prepared to end their three-month occupation of the Prime Minister's office on Monday to consolidate their grip on the main airport ahead of a court verdict that could dissolve the elected government.

Alabama mayor arrested on corruption charges (Reuters)

Reuters - Federal authorities arrested the mayor of Birmingham, Alabama, on Monday in a corruption probe surrounding a massive sewer bond debt that has forced Jefferson County to the brink of bankruptcy.

Hawkish Obama names Clinton as top diplomat (AFP)

AFP - Barack Obama on Monday nominated Hillary Clinton to be his "tough," "smart" secretary of state as his former foe vowed to give her all to steer America through a storm of international crises.

Mumbai attacks: India demands Pakistan take 'strong action' (AFP)

AFP - India on Monday formally accused "elements" in Pakistan of being behind the devastating Islamic militant attacks in Mumbai and demanded that Islamabad take "strong action".

Life Insurance Without Life Value: Why Young People Are Snubbing Financial Advice

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