The ’20s are a time of amazing transformations and growing up, a.k.a adulting. You land a job, establish a business, move out, get into a solid long-term relationship, do some of these things, or maybe none of them. In all of this hullaballoo, though, one thing gets forgotten- handling your funds like an expert. Sure, you would be stocking up on your monthly savings. But is it enough? Are insurance plans genuinely crucial? In honor of the International Youth Day celebrated in August, here’s the solution revealed- for the youth, the millennials, the ones in their 20’s, and the future of this country.
Why do you, as the youth, need to be financially literate?
In your 20s, you are youthful, wild, and accessible. Your entire life stretches out in front of you as an exciting, thrilling ride. But like you would on any daring undertaking, you need to be prepared for possible bumps on the roads, delays, and tragedies. First of all, the passive tone of people’s lifestyle implies they are more prone than ever to ailments. Heart ailments, neck difficulties, and diabetes affect millennials in their late 20s primarily because they sit hunched over laptops and ignore their fitness.
You’ve just begun with life, and the first disaster is already here. Do you dip into your money then and spend it all on recovery? Is that the only way? No. You can purchase a health care plan that includes critical illness coverage. And some of the projects come with a range for both you and your partner.
After taking care of security on the healthcare front, you may start expanding and envisaging your life with the family you plan to have one day. You’ll want your kids to have a bright future and study at the top university in the country or world. That’s going to cost some huge cash.
Again, are you going to fund it paycheck to paycheck? Primary and senior secondary education can function that way. But higher education for a professional degree? You’ll need to start creating a corpus early on. Education insurance plans will be your friends here.
Finally, what if some sad catastrophe were to strike and you would no longer be there to look after your family? How do you plan to keep them secure beyond your existence and make up for the lost income? Term insurance and life insurance products can aid you here. Your family will have a stream of money as they adjust to your passing and establish a life afresh. This same sum can be utilized to pay off EMIs, debts, and other financial dangers.
The frosting on the cake for all these plans? The earlier you start, the better. For young persons, the premium amounts are lower than those who are outside this band. And if the premium amount doesn’t vary in the policy, you can harvest guaranteed rewards for a small monthly/ yearly commitment. Doesn’t your life and those of your loved ones deserve this attention and care?
The Game of Losses
As per a global poll by Standard & Poor’s Financial Services LLC (S&P), less than 25 percent of adults are financially literate in South Asian countries. When the focus was centered on India, it was revealed that although though 17.5 percent of the world’s population lives in India, for an ordinary Indian, financial literacy is yet to become a priority. Nearly 76 percent of the adult population has no comprehension of basic economic principles. Compared to the rest of the globe, these findings are grim.
Financial organizations’ lack of sufficient understanding and counseling encourages people to obtain insurance policies without proper planning. Then they give up midway because they don’t have money to pay the charge. The agents, on their part, are so busy aggressively selling that they are unable to examine the constancy in revenue streams of the buyers properly.
Giving up midway leads to hefty penalties, which further turn consumers off from buying insurance plans. According to India’s Insurance Regulatory and Development Authority, on average, only 61 out of every 100 life insurance contracts purchased are renewed after one year.
16 out of 24 life insurance businesses couldn’t keep a third of the sold policies after the 5th year of policy sale. 2/3rd of the life insurance plans are no more. This doesn’t simply translate to the loss of income for insurance firms but a significant role in the financial status of many Indian families.
Money that would’ve been used for long-term investments and to meet critical life milestones is invested intangible assets and short-term plans. This is the same mindset and poor financial planning model to children and teens, which drives them to make the same mistakes that their parents did. That is until they make the intentional choice to step up their game and become financially educated.
Which insurance policies to buy?
The biggie. Starting small is crucial. It would help if you were careful of your income, your expenses, and how much premium you can afford to pay. To begin with, you can purchase health insurance coverage. Aviva’s Heart Care plan offers you to protect yourself and your partner for life against any of the fatal 19 heart illnesses. With the consequences of a sedentary lifestyle looming darkly over all of us, you can look to invest in it.
Next, you can seek life insurance coverage. There are two sorts you can pick between- term insurance and permanent life insurance. The first one is for a limited duration only and often doesn’t bring maturity benefits either. The amount of premium paid is lesser, nevertheless. The permanent life insurance plan guarantees coverage indefinitely until you die and might also come with maturity benefits- at a higher cost, though. A viable modus operandi is to choose a term insurance plan that can be changed into a permanent life insurance one.
And finally, you may begin creating the education corpus for your kids. Even when the child is three years old, you may save up a considerable amount if you start doing this. Paired together with a life insurance plan, your child’s future will be protected. Financial knowledge and financial planning are not rocket science. You don’t need to know and do it all in one day. So, what are you waiting for now? It’s time to own your financial destiny and to drive the campaign of financial literacy in India. As the future of our nation, we need you- the youth of now and tomorrow.
strategies to assist improve life insurance awareness
You may be an insurance professional or an individual who wants to spread the word about the significance of protecting loved ones. Use the accompanying materials to help communicate this critical word.
1. For consumers, talk to a professional to determine what policy best fits you and your financial circumstances. Locate insurance professionals or other financial consultants in your neighborhood here.
2. Hear examples of countless people whose lives have been profoundly impacted by situations beyond their control. Watch some emotive true tales of people who’ve benefitted from effective insurance planning.
3. Our applicant website is a helpful resource to teach applicants more about the life insurance application process, including what to expect and how to prepare for a test. Read frequently asked questions about the paramedical process.
4. Grab your coloring supplies and enjoy some art therapy because safeguarding loved ones with life insurance is a beautiful thing. Download this amusing coloring page to show how you protect your loved ones. Display it, share it, and show everyone how much you care.
5. We have assembled various tools and information for you and your applicants for life insurance agents. Utilize our toolbox to assist streamline the process for you and your clients.
6. Determining how much life insurance is needed needs a review of present and future financial requirements. Life Happens is a life insurance calculator to help you and your candidates estimate their financial needs.
7. Let applicants know about the additional benefits of applying for life insurance, like getting a copy of their laboratory findings. This secure, comprehensive, and easy-to-understand online tool helps candidates become more aware of their health status and could help them adopt a healthier lifestyle. Find out extra information to provide consumers about the value of getting a blood draw when applying for life insurance.
