Single or millennial married? Here’s how to buy life insurance at different stages of life
For most millennials, buying life insurance isn’t high on their list of priorities. However, if they have dependents financially, it is important to have adequate life insurance coverage even for working adults. What is suitable for a young age is a term insurance plan which is a pure protection plan that helps to secure the financial future of his family in the event of an unfortunate event with the insured. Buying life insurance should not be a one-time event, but rather a correct estimate of the need for insurance based on one’s goals, then purchasing insurance plans.
There are life insurance calculators available on the web that can help you calculate the amount of insurance coverage. But life insurance needs keep changing with age and therefore a review becomes just as important in order to avoid underinsurance at any stage of life. There might be goals to be achieved such as raising children, buying a house, etc. Parag Raja, MD and CEO, Bharti AXA Life Insurance, shares his advice with millennials who might be single or married with or without children on how to take a life cover at different stages of life. Extracts:
For a working single millennial, a term insurance plan will help secure your parents financially. If you have a loan like a student loan, in case an unfortunate event occurs, the claim money can help your parents pay off the loan.
Understanding that you’ve just started making money and that there are various aspirations millennials want to achieve, like buying a smartphone, going on a trip with friends and more, a good entry point could be a one year plan.
It is a plan in which one can subscribe to a term plan for one year at an extremely low premium rather than committing to a plan for 20-30 years or more for a higher premium amount. It offers the much-needed customization that the millennial lifestyle demands today. The plan is fully customizable according to their needs. In addition, as one progresses in life, one has the option of adding or changing the candidate into his wife and children as well. Temporary plans also offer great tax benefits.
Married millennials are loaded with responsibility – they may have a home loan, a car loan, elderly parents, or a child on the way. Therefore, term insurance becomes important to help secure your family’s financial future and to cover loans and other liabilities.
Married couples can opt for a joint life insurance policy that covers both partners under the same plan. In addition, if one is looking to protect oneself and grow one’s wealth for long-term life goals, ULIPs (Unit Linked Insurance Plans) or Guaranteed Income Plans could prove to be a useful tool. advantageous way.
The criteria for selecting between a ULIP or a guaranteed income plan depend only on two things: the returns you are looking for and an individual’s risk appetite. If one is looking for high market-linked returns and has a higher risk appetite, ULIP is the ideal choice. However, if the person is risk averse, a guaranteed income plan may become the ideal choice.
Millennials with children
For Millennials with children, a term life insurance policy is a must if you have young children. In the event of an unfortunate event, the money from the claim for term insurance will help the family maintain their lifestyle, cover loans (housing, care, etc.) and ensure that the money is not a barrier to the realization of his dreams by the family.
In addition, you can also look to invest in ULIPs or guaranteed income plans that provide protective coverage and help grow your wealth to meet your child’s future needs, such as education or shopping. a bigger car / house and more.