Why Insurance is a Millennial Must-Have

Why Insurance is a Millennial Must-Have

With millennials growing up, it's high time that you — yes, you — need to start investing in your future. Shayne Hare breaks down the reasons insurance is a must-have.

In this fast-paced world combined with the global pandemic, many of us are facing a lot of uncertainties and fears that are forcing us to re-evaluate ourselves, our assets, the future of our families, and even our retirement funds. We may not be able to control what the future holds, but that doesn’t mean we can’t prepare for things ahead of time to protect ourselves and the people who mean so much to us.

The simplest way to define insurance is paying premiums to a certain insurance company of your choice for them to insure your life, health, properties, etc. This is like allowing the company to take the risk of a financial loss due to everyday life’s uncertainties

There are several types of insurance and diving into all of them would be challenging for one article alone. For now, let’s focus on life insurance.

As a millennial, insurance didn’t really appeal to me at first. I dismissed it as an expense that didn’t really serve a purpose in my everyday life – I simply have to pay for it. But as I entered the world of “adulting,” I discovered the importance of having insurance.

With that, let’s dive into the importance of insurance and why everyone must have one:

Insurance provides another mode of financial gain

Most insurance nowadays are customizable and can cater to every individual’s needs. For the more investment-savvy, there are even insurance plans that can generate investments from different types of funds depending on a person’s willingness to take risks.

Insurance provides that feeling of security in case an accidental loss may occur

Regardless of the type of insurance plan you acquired, it provides a feeling of security in the sense that it basically can cover any sudden loss. For instance, in life insurance, if the insured person passed away accidentally, the designated beneficiaries will be paid by the insurer. During this time of pandemic, it is important to prepare for the unknown (however morbid it may seem), and be able to support the ones that will be left behind.

Insurance provides a sense of financial know-how

Not only does insurance serves as security in case something unexpected happens, but also it gives that feeling of financial literacy. To the people who are not well-versed in the industry, when they are presented with life insurance offers, it often leads to a lot of questions like “What does this feature do?”, “What can I get out of this?”, “What fund will be the best for me given my risk profile?”. Having to own an insurance policy makes you aware of your financial assets and can even make you keen on your investments. This may also be a tool for you to influence the people around you about being financially secured.

Insurance can also be a source of immediate funds

Most insurance have a savings component, and depending on the type you have, it can also be a source of monetary needs. Policy owners has the capacity to withdraw their funds and/or dividends in case they need emergency money. For us, millennial women, we are always on the run, we often have a lot to spend on, we support our families and we always have unexpected expenses. It is a good thing to have this handy.

Insurance provides medical support

What better time to get insurance than now? Insurance can cater to everyone’s individual needs. Customizing the features of a certain plan helps us to be prepared in case of accidents or illnesses. 

Insurance not only serves as security and savings, but can also be pursued as a career

I’ve heard a lot of stories about a person who was once just a client and now a professional and successful financial advisor. Since millennial women are go-getters, we always are courageous in going out of our comfort zones, trying a lot of different things and seeing what suits us. Some people chose to be a part of the insurance industry as a career and are thriving. Insurance can also provide financial literacy that can be pursued professionally too.

These are just some of the basic advantages and importance of having insurance. To know more about this, you can talk to a professional financial advisor and find the plan that best suits your needs.      

I am a millennial woman entering my 30s and getting my finances together. I’ve always wanted a sense of financial freedom and security while I do all the responsibilities and things I have to do in order to achieve my goals whether it be financial, personal or professional. Insurance is like a safety blanket; it is a long term security not just for you but also your family. What better time to plan for our future than now, while we are still young and capable?