Reasons Why Millennials Should Consider Life Insurance

Anisha Arora | March 13, 2019, 11:41 a.m.

Millennial – a term that defines the unique generation that has a different approach towards life, unlike their predecessors. The young adults of 21st century whose unconventional choices and uniqueness has changed the way the world works. While the previous generations strived on securing the future, millennials are more focused on living in the moment.

Be it buying luxury automobiles, investments in costly gadgets or the passion for travelling, millennials have changed the past way of life. Focusing on something like life insurance is not the most essential thing in their mind, the reason being no liabilities. 

However, buying a life insurance policy is no longer a luxury, it has become a necessity. If you also fall in the category of people avoiding purchasing an insurance policy, it is high time you reconsider your thoughts. In this article, we have jotted down some crucial reasons why millennials should consider purchasing life insurance. 

1.    It is Cheaper When Purchased Early

Did you know that the premium amount you pay for life insurance is based on your physical state and age? When you are young and healthy, you pose less of a liability to the insurance company, so the premium amount is low. However, if you wait to purchase insurance till you turn 30 or 40, the amount of premiums will dramatically increase. 

2.    Helps You in Saving Taxes

lpWhen you purchase a life insurance policy in India, you can claim various tax rebates under the Income Tax Act, 1961. The Act allows you to claim deductions on taxes up to Rs. 1,50,000 under its Section 80C irrespective of what plan you purchase. This can come as a relief when you have to pay a large sum as income tax. 

3.    Your Employer Insurance May Not Be Enough

There are only so many companies in India that offer life insurance as a part of a package to their employees. However, if your company provides you life insurance, buying a standalone life insurance policy is a good thing. It is vital because in case you were to lose your job, the security of life insurance will also cease for you. Thus, your standalone life insurance policy will help you by allowing you to cover some of your medical costs by borrowing money against it.
4.    You have Debt

If you have any outstanding debt like a personal loan, car loan, home loan or another form of liability, purchasing a life insurance policy can always help. The amount received by your nominee after your sudden demise can be used to cover these debts. By buying a policy, you can be sure that you will not leave your financial liabilities over to your family.
5.    Helps You in Achieving Your Long-Term Goals

Since life insurance is an instrument that keeps you invested for a long-term, it helps in ensuring that you achieve your long-term goals. These goals can be buying a home, your child’s education, or saving for your retirement. The diverse investment options available in life insurance products like ULIPs allow you the benefit of both life cover and wealth creation. These plans are goal-specific insurance policies that are specifically designed for your needs.

6.    You Might Not Qualify for It Later

Life insurance policies in India always run on various uncertainties. You might be young and healthy now and paying life insurance premiums may seem like a burden, but what if you suddenly fall ill? If any such thing happens and you suffer from a significant disability, you might not be allowed to purchase an insurance policy. Therefore, it is crucial that you purchase one while you are in your prime of health. 

‘Summing Up’

Managing money while you are in your 20s involves a lot of trial and error. But these trials and errors also teach you the basics of life. Today, life insurance might be the last thing on your mind, but it is something that should be in your life plan. Moreover, purchasing life insurance has become extremely easy today. Leading insurers like Future Generali offer online buying options to ease the journey of their customers. So, what are you waiting for? Hurry up and purchase a life insurance policy and secure your future!

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