Is Life Insurance For Millennials Really Needed?

• 18th Nov 2019
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Millennials, who have just started to settle in life, have many different financial goals. They need to save for traveling, buying a new car, and investing in funds that can secure a comfortable retired life. All these might force them to delay buying a life insurance plan.

However, life insurance for millennials is an important aspect to make the future of your dependents secure. If you are a millennial, here are seven reasons why you need to buy a life insurancepolicy at the earliest.

1. Cheaper

Insurance companies set the price of the life cover depending on the age and health of the policyholder. When you are young and healthy, it is less risky to sell you a life policy. Hence, the insurer offers a very affordable price. If you are not a smoker then the price can drop even more. So, if you wait until your 40s to buy a life cover, you will have to pay a higher premium.

2. Funerals can be costly

As a millennial, you have to be practical about your life choices. For example, you need to consider the threats of mortality even if that makes you uncomfortable. Funerals can be costly, and it puts an emotional toll on your loved ones. Certainly, you do not want to add the extra pressure of financial liabilities on them. If you have life insurance, the death benefit can cover the funeral costs.

3. You cannot leave your family in debt

You cannot avoid some debts if you want to meet certain important life goals. Purchasing assets can force you to opt for loans, which leave you with unavoidable debts. Your home loan, car loan, and credit card can leave you with a sizable financial liability. Surely, you would not want your parents or spouse to face financial challenges because of your debts. With a life policy, they can use the sum assured to clear the debts.

4. Life insurance policies come with a built-in savings option

Buying term insurance is cheap, but you can also check out other types of life policies. Some policies come with a built-in savings option and pay a lump sum at maturity.

5. You need to secure your children’s future

If you are a new parent, then securing the future of your child should be your utmost priority. Every kid deserves higher education and a comfortable life. When you buy a term plan, you make sure that your child is taken care of financially even during your absence.

6. Your employer’s insurance cover may fall short

You might have an employer that offers life insurance to their employees. Do not let that discourage you from buying a separate life insurance policy. Your employer’s insurance policy may not provide enough cover to protect your entire family.

7. The employer’s insurance plan may not be ideal

The biggest problem with an employer’s insurance policy is that it is discontinued when the employee changes the job. Hence, a separate term insurance policy can work better for you to have an additional cover for yourself.

Making life policy a part of your financial plan will help you set long-term goals, and provide you with peace of mind.

Buy Term Insurance now and Secure your Loved Ones

- A Consumer Education Initiative series by Kotak Life