You may be young and carefree, but responsibilities have a way of creeping up when you least expect it! This makes life insurance extremely important to strengthen your financial position and meet any unforeseen circumstances head-on. Besides, premium or coverage costs are much lower when one is younger, which pays off in the long-term.
The good news is that millennials too are realising the importance of Sabse Pehle Life Insurance, as seen by the Life Insurance Council survey, conducted across 40 Indian cities with more than 12,000 people between the ages of 25-55 years. Of the total respondents, 71% were already secured owners of life insurance or were keen to buy one. According to the report, Life Insurance has near universal awareness levels with around 96% as compared to mutual funds (63%) or equity shares (39%). Approximately half (47%) of the total respondents claimed that they or someone in their family holds a Life Insurance policy and knows a lot about it.
The importance of Life Insurance as a financial instrument largely remained the same across age groups and both males and females. Younger audiences prefer to purchase Life Insurance policies through online channels, which enables them to compare multiple offerings, benefits, and premiums. Findings in India’s west market highlighted that a large group of young adults and millennials were not only aware of life insurance but also willing to invest in it. The mindset of investing wealth was already dominant as 45% respondents in the west are aware about equity and shares, this was the highest amongst all the zones.
In cities like Ahmedabad, Mumbai, Pune, etc, 92% of people across all age groups believe Life Insurance is a necessity for them. It also reflected the willingness of 80% of people to recommend Life Insurance to friends and family as compared to the average 76% across the country. According to 86% of people in Mumbai, Life Insurance provides protection to families, the survey revealed. In Pune, 73% of those surveyed believed that the Life Insurance claim process is easy. Almost 3/4th of the respondents ranked Life Insurance among the top three most important financial instruments, followed by a Savings Bank Account. Nearly 61% believe that life insurance will assist in their children’s education and marriage.
As for other regions, in Delhi, 61% of parents believe Life Insurance assists in their child’s education and marriage expenses. Interestingly, Delhi also has 80% people using one or more social media channels which gives them a chance to obtain updated information on the latest on-goings in the industry. In Bangalore, 68% believed that life insurance provides financial security for old age. Nearly 58% of respondents living in the South believe that Life Insurance will help their families in case of sudden demise while 57% believe that life insurance will help grow family income in case of illness. In Hyderabad, 69% of people believe a Life Insurance policy is easy to buy. Digital payments are widely used in the South with 60% of the total population using one or more digital wallets.
This survey is aligned with Life Insurance Council’s new public awareness campaign “Sabse Pehle Life Insurance”, a joint effort by 24 Indian life insurance companies working towards a common goal of increasing life insurance awareness in the country. The Covid-19 pandemic witnessed a significant increase among people opting for life insurance; however, there still remains a gap as while 91% consider life insurance a necessity, only 70% are willing to invest in the same.
Here are some reasons to invest in life insurance when you’re still climbing the corporate ladder:
Insurance premiums are cheaper when you’re younger: Insurance may not be a priority, but consider paying off student loans, buying a car, investing in property in a few years and that’s when life insurance is useful in meeting these key life goals. The best part is that since premiums get higher with age, you can lock in a lower premium for coverage if you start young.
Getting into the saving habit: Starting young has its advantages as you get into the habit of investing regularly as you inch your way towards creating wealth. As your policy grows over the years, it is also possible to take a loan against it or withdraw a partial amount if the need arises.
You may not be able to buy it later: Life insurance is all about preparing for emergencies and it could so happen that due to health or financial circumstances, you may not qualify for purchasing one. To prepare for such uncertainties, it is a good idea to invest in a policy early on, so that it remains in force and gets you benefits at any stage in life. You can also ask the insurance company to attach benefits to your existing or new policy.
Remember that investing in a disciplined manner results in a good corpus which offers great protection in later life. So, go ahead and invest in life insurance now!
To know more about life insurance please visit sabsepehlelifeins.com