Life insurance is the only way by which you can ensure that your loved ones are financially secure beyond your lifetime. The death of a loved one is not easy to grapple with. But if you have been able to protect the financial future of your family you can rest in peace with the knowledge of having led a good life. This is where a Term Policy steps in.
Most urban families buy a life insurance plan at an important milestone or life event. It could be marriage or the birth of a child. Nearly 52% of families buy life insurance when a child is involved. The concept of term insurance is simple: you ensure that your family receives financial support in case you are not there or suffer a disability. It is the cornerstone of every investment portfolio.
When is the Right Time to Buy Life Insurance?
Conventional wisdom would suggest that you buy term insurance at a later stage in your life. A practical approach would suggest otherwise. The truth of the matter is that individuals in any age group should buy adequate insurance to protect his/her loved ones. Insurance is meant to safeguard your economic value, so the best time to buy life insurance is when you start earning. The earlier you invest in a life insurance policy, the better it is.
Tata AIA Life has many effective plans that appeal to Gen Next who are always too busy.
The biggest issue that millennials face when they think of buying life insurance is the lack of relevant information. Many insurance misconceptions are floating around. The following may debunk a few of them.
- Tax* saving is the only reason you need life insurance is a prominent misconception. You can save tax using other methods too. Life coverage to ensure the protection of your loved ones should be the top priority when you buy a term policy. The fact that you can save tax is a plus too!
- The second misconception millennials have about life insurance is that healthy and young people do not need protection. The threat of accidents is larger when you are most active. This is a period of life when your career can entail travel and stress.
- You need to be rich to buy insurance is the third most prevalent misconception about life insurance. Check out the Tata AIA term plan online to learn more about flexible plans that you can buy at affordable premiums.
- Your employer has bought insurance for you, and you think that should be adequate. In most cases, unfortunately, it is not the truth. The thumb rule is that you should have a term insurance policy that offers you a life cover of at least ten times your current income. Inflation should be factored in to make it feasible in the long term. It is a better idea to invest in a private policy to augment the same for adequate coverage. You should also consider that you might change jobs, and the life insurance policy that your employer has provided might be revoked.
- Another misconception is that your family might be denied a claim in the event of a mishap. A good step is to check the CSR or the Claim Settlement Ratio of the insurance provider. Most life insurance companies in India will provide the information on their websites. A better ratio is an indication that the company will settle valid claims.
- Most millennials think that buying life insurance is a cumbersome job. It is not so. Today, you can buy insurance at the click of a mouse. You can log on to the insurance provider’s website, calculate premiums, and fill some online forms regarding your physical health. It is easy to buy an online policy and you do not need a lot of time or effort to protect your loved ones.
Life Insurance for Millennials
Most millennials are not comfortable about buying life insurance as they believe that there is plenty of time for it later in their life. This may often be true, but accidents and mishaps are more common than you would expect. The ongoing COVID-19 pandemic has been an eye-opener in this regard. Life is unpredictable and you should be prepared for every eventuality.
Millennials are likely to be pursuing higher education or could just be in the beginning phase of their career. They are generally in the best of health and have no dependents. Responsibilities are limited and hence they feel that there is no need for insurance.
You should look for a term insurance policy that has an increasing sum assured and life cover as you and your income grow. You can prepare yourself for the imminent liabilities and life goals in your life by buying insurance when you are in a position to pay less for large benefits. It is a smart move to look for a life insurance company in India that offers you a flexible term policy that meets your current and future life goals with ease.
Current data shows that only about 17% of millennials have life insurance. The need of the hour is to ensure that all individuals should look at a term insurance policy as an important part of their investment portfolio. After all, the main reason to earn is to provide a secure financial future for your family.
Millennials should be aware of the value of buying a life insurance policy early in life and reaping rich rewards later.