image courtesy : freepik.com
Each business has to go through transformations as the years pass by. Due to the advancement in the technology and Internet of Things, adapting to these changes is the only way a business can thrive in today’s world.
The same applies to the insurance industry. Since the largest working population in India are millennials, the traditional selling models of the insurance industry are no longer effective.
Over 34 percent of the Indian population are millennials forming approx. 47 percent of the total workforce. The insurance industry can only thrive if it evolves to satisfy the growing needs of the millennials. In India, many insurance providers still sell products with a traditional approach (via agents).
The millennials are a technologically advanced generation, and hence choose online means to buy insurance products. Along with the buying habits, the product preferences, financial objectives, and career journey of the millennials are different from that of its previous generation.
Most millennials think that term insurance is a prominent way of accomplishing financial goals. One reason why millennials choose term insurance plans is because of its risk management feature. Since the generation has a high disposable income, they tend to take more risk. Because of this reason, term insurance is a risk management product for them.
A term insurance plan is a policy that provides financial protection to your loved ones for a specific period. It covers your family members in case any financial crisis arises in your absence.
As you grow older, you have to bear many responsibilities towards safeguarding your loved ones. A simple health insurance plan may not suffice their needs. In such a situation, having taken term insurance at an early stage comes in handy.
The reason why millennials should consider buying term insurance early in life is as follows –
- Low Premiums
Millennials are usually confused about when is the right time to buy term insurance. As a matter of fact, it is wiser to buy the policy at an early stage in life. Since you are at the peak of your health in your 20s, buying a policy during that period will attract less premiums.
The reason behind this is that as you grow older, you are prone to severe ailments. Getting a term insurance plan at an early stage in life for a nominal amount saves you from paying hefty premiums later in the future.
Apart from the death benefits under term insurance plans, the policy also offers rider covers. Generally, term insurance plans do not offer maturity benefits. But the ‘return of premiums’ features taken along with your basic plan, will provide you maturity benefits in case you survive the policy.
Similarly, other riders can be chosen as per your requirements. However, know that you will have to pay additional premiums on each rider cover availed.
- Protection to family
Lastly, term insurance plans financially protect your family members in your absence. This way, you do not have to worry about any financial liabilities that your family has to face in case of your sudden unfortunate dismissal. The death benefits received by the beneficiaries can be utilised in any way they want to.