Five Insurance Tips by industry expert Mr. Rakesh Goyal, Director, Probus Insurance, Insurtech Broking Company
Born between the early 1980s and mid-1990s, millennials are infamous for their social media addiction and being in the digital world. However, studies show that close to 50% millennials own their own homes and about 44% have a bachelor’s degree or higher. Despite all this, millennials confess they struggle with managing personal finance. With limited financial literacy, it is not surprising that most millennials are not pro-investors. Since this tech-savvy population is accustomed to bite-size information, it was noted that millennials are not likely to spend hours researching insurance and want things instantly. So, here are some quick insurance tips to help millennials secure a better financial future.
Rework your budget to include insurance-related expenses:
Managing finances, as a young adult, is extremely hard. With the constant pressure of social media, it not uncommon for millennials to struggle as month-end arrives. If you are guilt of choosing a lifestyle that doesn’t complement your bank statement, take some time off, and analyze your expenses. Once you have a fair idea, budgeting can help you meet your financial goals. Saving a set amount for premiums every month is a good starting point.
Buy a small insurance plan in the beginning:
A common misconception among millennials is that insurance is expensive and time-consuming. This stems from the lack of understanding of the products available in the market. Since the insurance industry is now online, starting with a small investment in motor or travel insurance will offer a first-hand experience of the process involved in buying insurance.
Prioritize long term benefits:
Millennials are accustomed to instant gratification i.e fulfillment of a desire or goal in an instant or short while. This may not be helpful when looking for an insurance plan. For example: Buying life insurance will not have any immediate benefits. However, the impact it will have on your family is undoubtedly worth giving a thought to. Term plans are cheaper when bought at an early stage of life. The younger you buy term life insurance, the more you save throughout the plan tenure.
To woo millennials, insurers, these days, not only have a social media profile but also a sleek website. Browsing these websites will help to understand the different products and benefits they offer. To ease buying, these websites compare premium rates and sum insured amount to offer the best deals. Buying a life insurance plan also saves tax under Section 80C of the Indian Income Tax Act.
Talk to an expert:
With all the information available on the internet, making the right choice can be confusing. Most insurers offer a free online consultation to assist first time buyers. Millennials are encouraged to use this to discuss their needs with an expert. It is highly recommended to ask questions regarding terms and conditions to get a better understanding of the product.
With the growing focus towards a digital experience and some tips and tricks, buying insurance is nothing less than shopping from an e-commerce website to millennials.