In today’s context when Millenials are staying away from debts and liabilities, Why buying Insurance is a wise decision?
In a fast-paced and dynamic world, Millennials are being known for adapting to the latest in trends– whether it is gadgets, gizmos, bespoke clothes or accessories. Millennials are rather impulsive when it comes to making a purchase decision as they believe in living their life to the fullest.
However, the recent Covid-19 pandemic and the impact it created has not gone unnoticed in the eyes of this particular age group. From job losses, pay-cuts to financial uncertainty, the last few months have been an eye-opener making people realize the importance of being responsible and act in tune with the ongoing crisis in the country. While the trend has just begun, here’s our suggestion for all millennials on why they must buy life insurance:
1. Let health insurance cover the soaring medical costs
With physical well-being at an increased risk amidst the spread of the COVID-19, one of the most important reasons for millennials to invest in health insurance is that it allows you to get the best clinical treatment while managing your financial expenditure efficiently. Moreover, it not only covers the cost incurred during hospitalization but pre and post-hospitalization period also.
2. Having the right life insurance plan safeguard your savings
Choosing the right health insurance plan not only safeguards the financial burden that may occur due to an unplanned medical expenditure but also allows you to keep your savings intact and focus on other key areas such as education, travel, retirement as well as your aspirational needs.
Insurance companies study age and overall health to determine the cost of coverage. For instance, a healthy millennial is generally considered to be a low-risk client for a life insurance company, therefore, they are more likely to get an affordable life insurance policy. Other conditions such as smoking, lifestyle habits as well as pre-existing conditions can also significantly impact the policy amount.
4. Employer cover may not suffice
Many individuals abstain from investing in a separate insurance cover as they are already covered under the employer’s policy. However, as the policy is linked to a specific employer, an employee may not be able to benefit from leaving the job or switching between jobs. Know about what is health spending account and how it works for employers and employees.
5. Securing retirement plans
Even as millennials would look for retirement as something of a long-term proposition, health insurance still remains an important aspect given the fluctuations in income flow and the increased cost of wellbeing post-retirement. This allows you to spend on other things while also keeping you prepared as well as dependants safe.