When is the Right Time for Millennials to Have Insurance?
When is the Right Time for Millennials to Have Insurance? - The initial "when" inquiry is frequently posed to millennials. When did you begin visiting Europe? When do you own a vehicle? What time do you rule? How long have you been wed? In reality, there is one crucial question to ask millennials—one that is surprisingly infrequently uttered—and that is, "When do you have insurance?"
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It's comparable to stating that millennials just know the bare minimum about insurance. Millennials, or people born between the years 1980 and 1990, frequently claim that they do not have a pressing need for insurance. "I'm healthy, so why do I need insurance?" Others justified their position by saying, "I already work and receive insurance from the office. Why do I need millennial insurance once more?
These two assertions have some foundation. Because despite having a large millennial population, Indonesia still has a very low quantity of insurance policies. According to a quick calculation, of Indonesia's 265 million overall population in 2018, one-fourth are millennials. Only over 16 million people currently participate in insurance. That figure still includes people of different ages, including parents and children in addition to millennials. Can you believe that the millennial generation still has a low knowledge of the need for insurance?
Why should people have insurance, and at what age should they begin to get it? What form of insurance is best for the needs and financial circumstances of today's millennials?
While still young
Everyone in this technological age wants their things now. The sooner—or faster—the better—is the general rule. This holds true for the insurance industry as well. The premiums to be paid are generally less expensive the younger the insured person is. How come? Here's the reason.
One of the benefits of getting insurance when one is young is that the premiums are generally less expensive. A person's medical history is factored into calculations when they purchase insurance, among other factors. Compared to their elder counterparts, millennials in their 20s or 30s typically have superior health histories. As a result, individuals are better guarded against the possibility of a serious sickness or death, which could result in high medical expenses.
The second factor, which millennials occasionally overlook, is that they don't have many dependents. Therefore, revenue can be directed to more vital expenditures like acquiring insurance while the person is still young.
However, the reality is that young people who are unemployed still spend their money more on necessities than on savings or investments. The monthly demands of millennials account for 51.1% of their income. Only 10.7% of it is used for savings, though.
How soon should you purchase life insurance, then?
The solution is as soon as feasible because the guiding idea is that the sooner the better. The premiums that must be paid in the future increase in price the longer a person waits to purchase insurance.
After all, as one ages, their financial situation will change. We might already be married and have kids by the time we're 35 or older. Additionally, you must finance personal loans for cars and homes. Our financial resources are severely constrained as our family grows.
On the other hand, when retirement age approaches, the necessity for insurance becomes more critical. That being said, purchasing insurance when you're young and still able to make intelligent decisions is the only sensible course of action.
