For most of the millennials, life insurance happens to be one of the last things on their busy minds. Millennials today are too busy and preoccupied with their student loans, starting their careers, starting families, etc.
Life insurance is an important component for a millennial looking to achieve the financial goals before getting middle-aged. The best time for buying a life insurance is when you are healthy and young as you would find the best cover at affordable rates, and there are several top carriers offering great life insurance, ULIPS, etc. for the millennials who are looking to build a financial safety net at an affordable price.
For millennials who want the best of both worlds i.e. insurance as well and investment, ULIPs (United Linked Insurance Plans) are one of the best options worth exploring. ULIPs offer risk cover to an investor which is supplanted with investments into stocks, bonds or mutual funds. Life insurance and ULIPs also offer tax saving benefits, with up to INR 1.5 lakh exempt from income under the provisions of the Income Tax Act.
Why buy a life insurance when you’re young?
Buying a house, getting married and having children are good reasons for purchasing a life insurance. However, in case other financial obligations keep coming in the way, there is an economic consideration in case you are a millennial getting life insurance early is probably much easier and cheaper than you think.
Not having it is a gamble
Some of the people do not want a life insurance since there is a chance that the insurance won’t pay out, and the millennials view it as throwing away their hard-earned money. However, the truth is that not having a proper insurance coverage is a bigger gamble. By not being insured, they are making a statistically-questionable and big bet that nothing would happen to them. And when they are young, they have much more years of uncertainty ahead of them. Buying a proper life insurance is the logical choice.
Employer Life Insurance is Insufficient
While it’s good to have insurance, coverage provided by the employer, it’s likely to be a basic protection. You might need paying more from your own pocket in case of an unforeseen emergency, which might be inconvenient, particularly in case you’re running short of money. Such policies are also tied to the employers which imply that in case you leave your current employer, you won’t have any insurance protection for the period till you land another job. Having your own insurance policy which is tailored for your requirements would ensure that you’re covered adequately always.
The Bottom Line
Understandably, life insurances are typically one of the last things which millennials today focus on. They’re mostly focused on paying off debts and saving on their monthly budgets. However, if you have dependents like your parents, spouse or kids, not having a life insurance could derail all your plans. The safety net of insurance needs to come in first, not at last.
About Aegon Life:
Aegon Life Insurance Company Limited launched its pan-India operations in July 2008 with a vision to be the most recommended new age life insurance Company. Aegon is one of the world’s leading financial services organizations (providing life insurance, pension plans, and asset management) and Bennett, Coleman & Company (India’s leading media conglomerate) have come together to launch Aegon Life Insurance. This joint venture adopts a local approach with the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions to customers and to prioritize their needs.