Getting a job, buying a house, and having kids is a few good reasons to invest in life insurance. However, if other financial priorities keep coming in the way, they will have an important consideration if you are a millennial. Getting an online life insurance plan is much cheaper than you think. Many people are of the view that life insurance is an unnecessary expense and a large percentage of them are under the misconception that they do not qualify. Millennials and life insurance have always been a strong debate.
While many millennials think that they do not need life insurance, they need to give the main concept a thought. How would they feel if their loved ones face financial problems after their untimely death? Would their loved ones be financially worse off in case of their death? If you are a millennial who has a debt or many dependents to take care of, you need to invest in a life insurance plan.
You may think that life insurance for millennials is very complicated. This is not the case. A term insurance plan is one of the most simple and purest forms of insurance policies. If you think that insurance is very expensive, you have a shopping advantage because the premium increases with age. Hence, when you are young, you can get a high cover at a low cost. Health is on your side and the chances of developing any critical illness are low. Moreover, if you think that you are not eligible for an insurance cover, you are most likely to quality considering your age.
If you think that term insurance is the only option available, you are mistaken. You have the option to choose your preferred insurance policy from a wide range of life insurance plans. You can consider Unit-Linked Insurance Plans (ULIPs) that are designed to serve two purposes—insurance and investment. You can choose the tenure and the sum assured as per your requirements. However, you need to consider your risk appetite while investing in a ULIP. Conversely, with term insurance, you can avail of a high cover for the risk of death at a cost-effective premium. The idea is to buy a plan that lasts until your kids grow up and are financially secure. Consider the lifestyle, household expenses, and the financial requirements of your dependents when making a decision. No one-size-fits everyone when it comes to the sum assured.
It is ideal to buy a term plan at a young age so that you can live stress-free and take the benefit of availing a higher sum assured at a lower premium. Ideally, you need to opt for a sum assured, which should be at least ten times your annual income.
You no longer need to visit the physical offices of different insurance companies. You can simply compare the plans and their features online to make a purchase. The process of buying life insurance has become quick and convenient with the penetration of the Internet across the country. If you are healthy, you will be able to find affordable coverage. Depending on the company you choose, you might not need to go through a medical examination.