Millennial, a prime age group roughly from 22-37 years, are quite enthusiastic about their future growth in professional as well as a personal sphere. They have witnessed a paradigm shift in India economy, society, technology and many other domains. A unique generation that has entered the 21st century by adopting a new lifestyle, millennials are quite distinct as compared to the earlier generation. Such a scenario can be stressful as there are no laid down paths for them, especially in the financial arena, as it was for their earlier generation. It is in this regard that life insurance can do the trick.

What is Life Insurance?

• A life insurance policy is an insurance product that covers the insured’s life with a pre-determined sum assured. The insured has to pay regular premiums, and in return, the insurer offers two-pronged benefits – a death benefit and a maturity cover.
   
• On the completion of the policy term, the insured receives the maturity amount. This makes life insurance viable as an investment option.
   
• However, in case of the insured’s death during the policy term, the authorised beneficiary receives the sum assured as a death benefit. In this regard, it takes care of the financial well-being of the insured’s family.

Benefits of Life Insurance Policy for a Millennial
Here are some of the crucial benefits that life insurance has to offer every millennial.

1. Financial Security:
   “Unless you are immortal, you need life insurance.”
   This is correct for every person but more so for young professionals who live by two mantras - ‘never-say-die’ and ‘there is no tomorrow’. The enigmatic qualities of millennials cannot hide the fact that everyone has dependents either today or maybe in the future. Therefore, purchasing a life insurance policy at a young age safeguards your family financial future.
   Also, buying life insurance at an early age ensures low cost of premiums.
    
2. Safe Investment:
   Millennials are quite pragmatic about their investments and believe in investing in high-return assets. A term insurance plan is one of the best that one can get in present times of diverse market instruments. With low premiums and additional loyalty program bonuses, these can be very lucrative for young professionals of today.
    
3. Tax Benefits:
   Tax savings from insurance products is a universal advantage. Under Section 80C of the Indian Income Tax Act, premiums paid can be a deduction from taxable income. Moreover, the sum of money received after maturity is also tax exempted under Section 10(10D) of the Act.

What Kind of Insurance Policies Should a Millennial Buy?
Insurance companies offer a variety of life insurance products, such as 

1. Term Plans offer life insurance for specific term upon completion of which one gets the maturity amount.
    
2. Unit Linked Insurance Plan (ULIP) provides for an investment option along with life cover, thereby helping you invest as per your risk capacity.
    
3. Endowment plan associated with some life insurance products has a basic component of life cover along with an option to start saving.
    
4. There are multiple riders that can be linked to life insurance such as medical expenses, which may also include regular health check-up as well as critical illness cover.
    
5. Furthermore, there is also an accidental death benefit rider, which provides death benefits in the event of an accident, or a disability rider where the insured person is covered in case she or he is being afflicted with a disability. 

Choosing the right type of Life Insurance is important for your financial goals, whether it is long term, short term or both. 

Factors that affect the life insurance cover

1. Medical history: A pre-existing illness or a family history of lifestyle and critical illnesses can affect the life insurance premium.
    
2. Age & Gender: Age is an important factor because the difference in premium cost before the age of 30 and after 30 might be quite stark. Hence, it is highly recommended that a millennial should opt for life insurance as early as possible.
   In addition, the gender factor also plays in as the life expectancy of a female is on the higher side as compared to males. Also, many insurers offer life insurance policies for women at lower premiums and targeted benefits.
    
3. Lifestyles choices: The habit of drinking and smoking can have some effect on your policy premium as well as your medical records. 

It is quite understandable that a life Insurance policy may not top your checklist at this point in time of your life, but it would turn out be a vital part into shaping your financial goals at some point. So, it is better to make the right call at an early age and avail holistic life insurance coverages at low premium rates.

*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

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