Although many millennials are buying their first home or starting a family, many still don’t have life insurance or fully understand its benefits, according to a recent survey from Toronto-Dominion Bank (TD).

In fact, 55% of millennials don’t currently have life insurance while only about 33% have considered life insurance, particularly to protect their loved ones in event of worst-case scenarios, the TD survey finds.

“As millennials are in the midst of this new life stage, it’s clear that they want to protect their families and loved ones,” says Mark Hardy, senior manager of direct life and health with TD Insurance, in a statement. “But with so many other financial responsibilities, it can be daunting to know where to start.”

In terms of priorities, life insurance takes a backseat behind managing day-to-day expenses, paying down debt, saving for a house and saving for retirement, the TD survey finds.

“There is no doubt that getting married or becoming a parent is a key life event when people realize the importance of having life insurance,” Hardy says. “Less understood is that the younger you are when you buy life insurance, the less you’ll pay for your coverage and your premiums will not increase for the term you choose.”

However, the survey results indicate that many millennials are in the dark as to what life insurance protects exactly. For example, 68% of millennials believe life insurance is best used to cover one-time expenses, such as a funeral.

Many millennials are unaware, the survey finds, that life insurance can support day-to-day living expenses, mortgage payments, lost income and student loans.

For financial advisors looking to reach this demographic, Hardy says in a statement to Investment Executive that they need to dispel “some of the pre-conceived notions that [millennials have] built up over time with respect to the purpose of life insurance, helping them build an understanding of the real cost and filling that gap where they may not have even been asked about insurance in the past.”

Environics Research Group conducted an online survey of 1,000 Canadian adults from May 8–2 on behalf of TD.

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