Millennials account for roughly 46 per cent of the workforce in India. Given that this is a generation that believes in enjoying life to the fullest, term insurance might be a difficult sell. After all, millennials have varied interests and obligations that consume a large portion of their disposable income. In addition to spending on household bills and fun activities, a significant portion of their salary goes toward servicing auto loans and home instalments. However, life is full of uncertainty, and it is strongly advised to purchase term life insurance as soon as possible.
Why Do Millennials Need Insurance?
Although there is an increasing trend among Indians to purchase different types of life insurance products, term insurance penetration is still 28 per cent. One factor for millennial’s apathetic attitude toward purchasing term life insurance products is a lack of awareness. According to a survey undertaken by a major insurance company, only 45 % have heard of term plans, and only 17 % have purchased such policies. Other reasons for not purchasing term insurance coverage include misconceptions and poor lifestyle choices.
Life is highly unpredictable, and it is easy to imagine the agony that a family would go through if a solitary breadwinner dies. As a result, it is crucial to be prepared to deal with the fallout from such incidents. Insurance for millennials entails investing in risk-management tools that can safeguard them from future uncertainty while also assisting their loved ones to live stress-free lives.
Things to Keep in Mind When Purchasing Insurance
Some of the insurance tips for millennials while buying a policy are described below.
Analyse Your Needs
Before acquiring a term insurance policy, it is crucial to analyse your insurance needs. How much of the family’s income do you contribute? Is there anyone else financially dependent on you? In the event of our unexpected death, how would your family pay your debts? Based on the aforementioned factors, determine how much and how long you need coverage. You must buy enough to cover the financial repercussions of an unexpected incident.
Do Your Research
The first crucial aspect while looking for term life insurance should be acquiring appropriate coverage. Price is important, but you should also consider the type of coverage you require. After that, try to determine which insurer provides the most comprehensive insurance that matches your needs while still being inside your budget. Getting a cheap policy is appealing but buying a policy that does not give appropriate financial protection when filing a claim is pointless. Hence, it is vital to do proper research before buying a policy.
Start Young with Life Insurance
Millennials are, by definition, conservative when it comes to insurance. They may be more likely to put off obtaining life insurance for a few more years. However, because the cost of insurance coverage is directly linked to age, you have the maximum advantage if you are young. The sooner you begin, the more value will be accumulated for you and your family. You can use an online term insurance calculator to determine the amount of coverage you require depending on your age, health, and other factors.
Look for Discounts
After you’ve assessed your coverage requirements, consider your budget and look for methods to save. Inquire with your broker about any discounts available for your plan. Insurers frequently offer discounts on things such as fully paying your policy, among other things.
Look for Added Benefits
Additional factors assist you in building a stronger financial protection umbrella that can safeguard your family from a range of risks. Some of the additional features are:
- Income tax benefit
- Increasing cover
- The accidental death benefit cover
- No smokers benefit, etc.
It is not easy to live and work as a millennial. Most of them are saddled with debt that has accrued over time. However, millennials must purchase life insurance and provide financial protection to their loved ones in the event of an untoward accident.