An ideal guide for millennials to buy life insurance

Updated: February 28, 2019 5:05:15 PM

Read on to find when and how life insurance policy can provide you with financial security and how it can be a wise decision for millennials.

Millennials ,Life Insurance,endowment plan,financial goals,Insurance policiesMillennials usually carry the attitude of “There is no tomorrow” and hence end up spending huge money at things that are not important and which would make them regret later.

Millennials usually think that why do they need a life insurance policy? Is it worth investing in such a plan or how this policy can benefit me?

The answers to these questions are that there are a number of reasons for buying a Life Insurance Policy. Getting married, buying a new house or having kids or dependents could be some of those.

As you scroll down this article you will find when and how life insurance policy can provide you with financial security option and how it can be a wise decision for millennials.

Need of Life Insurance for Millennials

As it is said that, Do the right thing at the right time. Millennial usually carry the attitude of “There is no tomorrow” and hence end up spending thousands of money at things that are not important and which would make them regret later. Ideally, the reality is that millennials need to think about their and their family’s future in order to live a stress-free life later. A Life Insurance proves to be an ideal pick in such case as it offers financial coverage to your dependents in your absence.

Doing the right investment at the right time, can help millennial systematically invest in their better future. As we all know that life is highly unpredictable, it is very important to plan and be prepared for any unforeseen situations that come your way, so that you and your dependents do not have to bother about the financial part in your absence. Life Insurance would work as a safety net for your dependents or loved ones in such situations.

As it rightly said that, Unless You Are Immortal You Need Life Insurance

Opting for a life insurance policy doesn’t mean that you are getting into insurance but it is another way to build funds as well. In other words, it could be said that Life Insurance is more than an investment opportunity to build up the funds.

How does Life Insurance help?

Life insurance provides the life cover and keeps your family financially equipped in your absence. Life coverage differs from person-to-person and plan-to-plan. Hence, one has the option to choose the plan as per his or her requirements and budget.

What kind of insurance policy should a millennial buy?

There are different types of Life Insurance policy which provides various saving opportunities along with the life cover. Some of the types include Term Plan (a product that covers the life insured against an untimely death) and Unit Linked Insurance Plan (ULIP) which includes an investment component so that you can invest money as per your risk capacity.

Life Insurance also comes with an endowment plan which is basically a traditional plan and offers life cover along with an opportunity to start saving. Additionally, there are optimum plans to secure your child’s future. These are long term plans which are designed for your child’s education or marriage. Hence, for Millennials who have kids need not worry about their kid’s future expenses since this plan is a wise pick for you.

Besides these policies, there is a Money Back Policy which is designed to meet the short term financial goals and offer returns as a % of a sum assured over a regular period of time.

To choose the right type of Life Insurance, it is imperative that one must first figure out their financial goals i.e.both long term and short term goals.

What factors to consider while finding the best pick for you?

Finding the right type might seem like a Hard Brick to Break. The things which you must take into consideration before opting for any policy is you must assess your financial needs and goals. You must also consider inflation and accordingly check the different Life Insurance plans available.

You can also evaluate various Life Insurance policies that best suits your needs and if possible consult a trust for the financial advisor to help you find the right pick for you.

Analysing the right plan as per your requirement and budget is a significant step before opting for any plans since it would help you to reap the benefits in the long run.

Although the Life Insurance policy may not seem like a top priority in your checklist at this time in your life, it would be a very crucial part of your financial goals at some point. It’s better to take the right call at the very right time. This plan would not only offer you protection but it will also make the best use of your money along with financial stability for your loved ones.

(The author is Rakesh Goyal, Director, Probus Insurance)

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