Term Insurance for Millennials: 6 Reasons Why It's Your Secret Weapon

Hey there, supercharged millennials!

We know you’re all about living in the moment, chasing new adventures, exploring new opportunities, and making the most out of life. Whether it’s planning your next Goa trip, discovering the latest foodie hotspot, or binge-watching the newest series, you are always on the go.

But have you ever thought about securing your future, too? We get it; talking about insurance might not be as thrilling as your weekend plans! But guess what? It’s super important for you to be aware of it! Especially when we got to talk about term insurance. To start with the basics, let us help you understand what term insurance is and why you should even worry about it!

Let’s break it down for you.

Think of term insurance as your financial parachute. It is a smart, affordable and effective way to make sure your loved ones are taken care of if something unexpected is to happen to you!

Imagine this: You’re on a cross-country road trip. You’ve got your route planned, your playlist ready, and snacks in the basket. But you also have a spare tyre, just in case, right? Term insurance is that spare tyre for your financial journey!

It makes sure if something unexpected happens to you while the policy is active, then your loved ones’ journey can go on without financial hassle, atleast. It is designed to provide you with financial protection for a specific period, tailored to fit your lifestyle and needs. It is like having a reliable friend who’s always got your back!

Still need some reasons to get your hands on the deal? No worries!

Today in this article, we are going to give you 6 reasons why term insurance for millennials is NOT so boring idea! Trust us, it’s simpler and more beneficial than you might think! We’ll show you how you can secure your future while enjoying your present.

Let’s cut to the chase and dive straight into it-

The 6 Reasons Why Term Insurance Can Be Your Secret Weapon

1. Financial Protection:
We would love to always protect our hard-earned money, Right? But what if something happens to you and your family is left under financial strain, which would lead them to deplete your money, which was meant to protect them!

Many of you millennials are at a stage in life where you are thinking of starting families or have various dependents who are probably relying on your income. Investing in term insurance can be a great way to make sure your family’s financial state is protected. If something ever happens to you while the policy is active, the sum assured received as a death benefit will help your family maintain their lifestyle and avoid any financial burdens.

Now, if you are in your twenties, you might have to take loans like educational, car, or home loans to pay off. In such cases, the death benefit from your policy can be used to clear any pending loans, relieving your loved ones of any financial worries.
So you can worry less and focus more on your career goals!

2. Income Replacement:
One of the biggest perks of term insurance is that it can replace your lost income. Now, for millennials, who are often the primary bread earners in their families, your sudden absence could lead to some serious financial problems. Here is when a term policy offers a sum of money, also called the “sum assured”, which can work as a substitute for your regular income, helping your family keep up their lifestyle, pay bills and handle day- to -day expenses without any financial stress!

It is also very important to know that many term plans also let you receive the sum assured in monthly instalments. This makes it better to manage your family’s finances regularly.

Keep reading; there are more reasons to turn the tables if not done already!

3. Lock In Low Premium Amount:
We know how you millennials love to maintain a fit body and a healthy lifestyle. You are always updated with health and diet trends already. And do you know this can lead to you paying lower premiums for your term insurance?

Your age and health actually play a big role in measuring the premium of your plans. By getting a term plan while you are young, you can lock in lower premiums for your policy’s duration. This is because young people are generally healthier and less likely to face any serious health issues, which also means lower risk for the insurance company!

As you get older, insurance costs tend to go up due to declining health or increased risk of facing serious ailments! By starting early, you can secure affordable premiums and enjoy maximum coverage while benefiting from your youth and good health. Remember that buying term insurance at a young age leads to a considerable amount of savings over the long term.

4. Easy To Buy:
We all love to buy things that are handy and make our lives easier! As we have already mentioned before - term insurance, being a pure risk cover, is the simplest and the most effective type of life insurance. Choosing the right term plan would require you to put minimal effort compared to other types of insurance. You would need to consider a few factors, though, before jumping in, like- coverage options, additional features, customisation options, and most importantly, the insurer’s past claims and policy experience!

With the rise of online purchasing- life has got to be easy, as you can also purchase insurance online. It is readily available. You can research and compare different policies, get various quotes and complete the application process very conveniently from your computers or mobile phones!

How much more simplified can this get for you? This entire process saves you a lot of time and effort, making it perfect for you millennials with busy schedules! It is a win-win, right?

Not excited yet? Hold on- we still have 2 more reasons to prove to you why term insurance can be your secret weapon!

5. Customisable Coverage:
We know how you millennials love customisation -whether it is your shoes, your music playlist, clothes or accessories. But would you believe it if we told you that you could also customise your term insurance policy? Yes, you read that right. Just like you personalise everything in your life!

With this, you can tailor your policy to fit your exact needs and preferences. This also means choosing the coverage amount that aligns with your financial goals, selecting the policy term, and even adding riders for additional protection. It’s just like personalising your insurance plan to match your unique lifestyle and future plans. How exciting is that?

Here’s why it is a game changer in the insurance scene- you are not just buying insurance, you are building a safety net that is uniquely yours.

Whether you are planning to start your own business, get married, start a family, or save for a home, customising your term plan will make sure you are covered no matter what life throws your way!

Finally, we have reached the last and the most important reason of all to get yourself term insurance-

6. Dual Tax Advantages*:
Oh! How we would all love to save taxes! Did you know that term insurance can help you do just that? Under the Income Tax Act of India, 1961, you can avail of tax benefits* for both the premiums you pay and the claim your family receives.

Starting with Section 80C, you can claim deductions of up to INR 1,50,000 on the premiums you pay for your term plan every year! This not only secures your family’s future but also reduces your taxable income.

Moreover, if something were to happen to you during the policy term, the insurance claim that your family receives would be completely exempted from tax under Section 10(10D)** of income-tax Act,1961. This also means they get financial support without any tax burden, helping them maintain a stress-free life during a difficult time!

We have uncovered it all for you! Now, can you see why term insurance is more than just a safety net for you? It could truly turn out to be your secret weapon!

Wrapping Up!

If you have read this far, you are definitely taking away some valuable learnings today. We have covered some compelling reasons why term insurance can be your not-so-boring secret weapon. Think of it as an ultimate hack. From protecting your loved ones’ financial future and replacing lost income to locking in low premiums and, lastly, enjoying tax benefits*, term policy ticks all the boxes. It offers you peace of mind without breaking a sweat! It is literally like your video game cheat codes!

As you grow up, taking on responsibilities becomes part of life. Along with partying with friends on weekends, going for long drives, watching movies, or lazying around, there is another task to add to your list now. It is to learn and research about term insurance. Get a good grasp of it, understand the terms and seek experienced advice to make wise choices. Always remember in life, very few people wait for you. But term insurance will always be there to hold your hand and guide you through all the difficulties. Just like an umbrella for a sunny day!

So, while you are planning your next adventure or chasing your dreams, it is also essential for you to safeguard your family and loved ones against any uncertainties of life. So, what are you waiting for? Go on now and start exploring the wide range of options today. Make term insurance your secret weapon for a more secure tomorrow!!