Top 5 Reasons Why Millennials Need Insurance

By | February 6, 2019

Most millennials are unsure about whether to get insurance or not. This article, however, will shed some light on its importance. Read on to know more!

For millennials, time is money. For this generation that believes in doing things ‘on the go’, immediate needs outweigh the importance of ensuring financial security for the future. This, however, exposes them to pronounced financial risks in the face of unforeseen circumstances.

When it comes to millennials, it’s important that we take stock of a few lifestyle changes that gradually stepped in over the course of time.

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Unlike the previous generation, the marriageable age for millennials has increased due to a greater focus on career. Therefore, it is only in his/her mid- to late-30s that a millennial gives serious thought to securing a stable future. In most cases, the need for Life Insurance is not felt until one experiences unfortunate circumstances such as health issues or a death in the family.

Why choose Life Insurance?

Life Insurance serves three functions. Firstly, it serves a direct purpose of acting as a safety net for your family in the event of your untimely demise or permanent physical disability. Secondly, it protects your funds. Thirdly, it functions as an instrument of investment.

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Let’s explore why it is necessary for millennials to avail Life Insurance policies.

Reasonably priced

Many of us are of the impression that insurance is unaffordable. Well, it’s time to bust that long-standing myth. Life Insurance policies are priced according to your needs. You only need insurance to cover your bases. For starters, begin by determining your risk cover and pick a plan accordingly.

Early-bird benefits

Life Insurance premiums depend on several factors such as your age and overall health. Therefore, insurance premiums increase as you get older. As a young and healthy millennial, you will be less of a liability to the insurance company. So, starting early can help you secure a better deal.

Easier to get a loan

Whether you want a Home Loan to finally get your hands on a lovely place of your own or if you need a Personal Loan to give wings to your entrepreneurial dreams, having an insurance cover in place is the best way to protect your home or safeguard your business.

And, it gets better. Individuals who have a Life Insurance policy in place have the benefit of availing a loan against their policy. This can help them tackle sudden emergencies without disturbing the benefits of the policy purchased.

Additional Reading: Everything You Need To Know About Life Insurance

Investment or Insurance

Have you ever felt undecided about which one to pick out of investment and insurance? Well, this choice is yours. But as a millennial who has just stepped into employment and is looking forward to grow his/her wealth, investments are of considerable importance.

Before you begin to multiply your wealth, it’s important that you fortify it. This is due to the simple reason that you can no longer augment the wealth you’ve lost. This is why it’s a must for you to get insurance and then consider avenues of investment as per your appetite for risk.

Long-term savings

Insurance policies are tax-free and accumulate cash value over time, enabling you to borrow against their value in the future.

Life Insurance acts as a low-risk vehicle for savings. Millennials, therefore, are likely to have many years to accumulate their savings.

Consider this. In the event that you outlive the policy or the policy hasn’t been claimed because you’ve survived its term, the sums you paid as premiums are returned to you, free of tax. However, it’s important to note that this is not applicable to all policies. This only holds true for return of premium (ROP) Life Insurance policies.

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Now that you’re aware of why you need insurance, there’s a factor that you need to be wary of. Purchasing Insurance is quite different from shopping for another financial product. And, it involves several financial considerations.

To make things worse, comparing the diverse range of insurance plans proves challenging. It is made even tougher due to the very nature of how insurance policies are conventionally made available. Confused? Well, it is common for insurance policies to be purchased from agents.

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In order to find the perfect policy for your needs, you will need to get in touch with several insurance agents. This can be immensely time-consuming. Luckily for you, we have plenty of options in store to hook you up with the best-suited policy for your needs!

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