4 Reasons Why Millennials Need Life Insurance (2024)

If you’re a millennial, the chances of you wanting to invest in a life insurance policy are probably lower than the low. After all, you’re still young and healthy and you’d rather spend that money on amping up your career, buying the latest gadgets and gizmos, fine dining, travel, etc. You work hard and you should be able to celebrate your life the way you want to. However, we often forget the fact that life comes at you fast and nobody can avoid the unexpected tragedies of life (death, critical illness, et al). This is why investing in a solid life insurance policy that helps you stay prepared is important to safeguard the future for yourself and your loved ones.

Here’s a quick look at the top five reasons why millennials need to invest in a Life Insurance Policy.

Employer Insurance Might Not Be Enough

As a millennial, a life insurance plan offered to you by your company might seem sufficient. But, what a lot of people don’t know is that employer insurance covers only 1.5-2 times your CTC, which primarily covers basic protection and expenses. So, if you get any major critical illness, you’d still need to pay additional charges from your pocket. This is why it’s important you invest in an all-in-one life insurance plan that fulfills all your needs, no matter the emergency, than a basic one.

To help make the most out of your life insurance policy, you can add ‘Riders’, which when combined with the policy, enhances its coverage to give you the maximum benefit. A rider is an additional benefit on your base plan that offers a certain type of advantage. The base plan can be any life insurance policy you may want to buy depending on your needs. The Rider benefits go beyond the basic insurance cover. Since life insurance doesn’t always give you complete protection, there’s “Poora Plan” By Kotak Life, a renowned life insurance company in India, that encourages you to add different riders like critical illness rider, accidental death benefit rider, or permanent disability rider to your life insurance policy.

So, if you decide to buy ‘Poora Plan’ i.e. a term insurance policy with a critical illness rider benefit, and you were to get diagnosed with a major illness, it’ll act as an income replacement and will take care of all the indirect expenses involved. You can file for a claim and get a payout for the treatment. Similarly, the permanent disability rider will offer you protection if you were to meet with an unfortunate event that causes permanent disability due to an accident. It makes you eligible for a payout benefit which will be paid over a period of time. This total sum amount can act as either an income replacement for your family or can get proper care and treatment for the injury.

It Costs Less When You’re Younger

As you grow older, the chances of you developing some form of illness also increase. And this greatly decreases your chances of buying an insurance policy at an affordable price since factors such as age and health play a very important role in determining the cost of the policy.

So, when you’re young and healthy with no pre-existing conditions, you'd be able to get a policy at a cheaper rate. However, the cost of a Life Insurance coverage would go up over time as you age, since you’d pose more of a liability to the Insurance firm. Not to forget, there are also chances that you might not even remain qualified for insurance in case you end up developing a really serious health problem.

Help Out Your Loved Ones In Need

If you’re a millennial and unmarried, you might still have someone as your dependents in life such as your parents or siblings. So, if you were to meet with an unfortunate accident, your life insurance policy will act as a safety blanket and an ultimate emergency fund for those who depend on you for their monthly expenses. This is especially important if you’re currently also paying a student loan because any kind of a liability, in case anything happens, would be passed on to the parents.

In a nutshell, having a life insurance policy would help take care of your loved ones, ensuring they’re able to live a comfortable life without any added financial issues.

Fulfill Your Financial Goals

There’s no doubt that investing in Life Insurance offers security like no other. It’s something you’d thank yourself for investing in when you reach retirement or when stuck in dire situations. But, Life Insurance also acts as an important tool to fulfill your personal finance goals. So, whether it be for your future wedding, buying a home or car, you can always use money from life insurance and achieve those dreams and plans.

In fact, there are different kinds of investment plans that also act as a saving tool, allowing you to save money. You can get in touch with a Life Insurance Agent to get better details and suggestions around the kind of plan that works best for you. Moreover, you also get tax-saving benefits with different Life Insurance policies, making it all that more appealing.

To sum it up, life is uncertain which is why investing in a Life Insurance Policy that can offer complete protection for your loved ones is important. A plan like Poor Plan by Kotak Life is a good option since it completes your insurance policy with the rider benefits (Death, Permanent Disability, or Critical Illness).