Familiar with the concept of YOLO (You Only Live Once)?
Why wouldn’t you, Afterall every millennial wants to go with the flow and make most of their youth. It is very common to see them spending most of their income on gadgets, fine dining, and cloths. While there’s nothing wrong with living life to the fullest, it is always beneficial to act more responsibly. Recent research suggests that millennials are more risk-averse in investing money. About 45% of millennials believe that health is a top priority for them but still haven’t been able to connect the dots between health and Insurance because health is not valued till sickness comes.
Most millennials tend to view life insurance as a burden rather than a necessity and would, therefore, prefer not to incur the additional cost of paying the premiums in their monthly budget. According to Life Happens and LIMRA ‘s 2018 Insurance Barometer Survey, 44 percent of millennials overestimate insurance rates by up to 5 times the actual sum of money. So, the fact is that consumers overestimate the life insurance costs and therefore make the mistake of postponing their purchase.
Since you have no responsibilities right now, you might tend to think you have a long way to go before you need to consider insurance. But be prepared to pay much higher premiums for the same insurance policy when you buy it after a decade because in Insurance the early you start, the lesser the premium amount will be.
For unmarried millennials in the age group of 25 to 30 years, there is a huge responsibility of paying off the student loan. In case any unforeseen circumstance happens, the burden of paying the debt lands on their parents. Millennials who are newly married may have many financial obligations like Home loans, car loans, household supplies, future savings, etc. They have to make sure that their family has financial security even after their death.
So Instead of Keeping insurance at the bottom of the priority pyramid, buy it on the day you start earning as it helps you plan your financial journey with better clarity and insight and ensures you to leap towards a protected future.
Consider the above principles before buying Insurance
Written by- SHUBHANGI SRIVASTAVA
Great Lakes Institute of Management
