Millennials are the new face of the future of the country. They represent the new generation and also comprise of the new customer demography. Today’s millennials are smart. They don’t shy away from demanding what they need and they are in control of their lives. Even when it comes to handling finances, millennials are increasingly becoming aware of the need of having a financial plan in place to meet the financial needs of their lives. This is where you need to educate them why and how insurance plans play an important role in their financial planning. If planned properly, insurance policies can help your millennial clients create financial security for themselves. Do you know how?
Here are some not-to-be-missed insurance products which your millennial clients should have in their financial portfolio if they are looking for financial security –
- Motor insurance
A bike or a car is no longer a thing of luxury as millennials are increasingly buying a vehicle for easy conveyance. If your clients have a vehicle, a vehicle insurance policy is also a must. In India there is a law (the Motor Vehicles Act, 1988) which necessitates vehicles to have a valid insurance cover to run on Indian roads. The law demands a valid third-party cover which covers the third-party liabilities that your clients might face if they harm any third party or property. However, this cover is limited as it doesn’t cover the damages suffered by the vehicle itself. If your clients own a vehicle, advise them to invest in a comprehensive motor insurance policy. The policy would cover the mandatory third-party liability as well as the damages suffered by the vehicle itself.
A motor insurance policy for your clients would, therefore, not only allow them to drive their vehicles legally on the road, it would also protect them against the financial loss that they might face in case of third-party liabilities, damages suffered by their vehicles or theft of their vehicle.
- Health insurance
Medical costs have increased considerably and the increase is expected to continue, thanks to medical inflation. Millennials are well aware of the rising cost of medicine and that is why they need a comprehensive health insurance plan to secure them against the financial loss suffered in an illness. Lifestyle illnesses are becoming quite common and while diabetes, obesity, hypertension, breathing disorders, etc. were uncommon a decade or two back, today they have become a common lifestyle curse. The impact of these illnesses is quite severe and though millennials are moving towards a healthy lifestyle, they need a plan in place if a medical contingency comes knocking on their doors.
You should, therefore, suggest your clients to invest in an all-inclusive health insurance policy for themselves as well as for their families so that their finances are secured in case of any medical emergency. A critical illness plan is also a must to protect against common critical illnesses which have become more widespread in recent times.
- Life insurance
No financial planning can be complete without a good term life insurance plan in place. A term insurance plan provides the promise of financial assistance in case of premature death of the insured. Death is uncertain and given the fast paced lifestyle of today, securing the family’s financial future becomes all the more important. This security can be provided by a term insurance plan which pays a benefit if the insured dies thereby providing financial relief to the dependents.
Advise your clients to invest in a term insurance plan with a high sum assured level so that the funds do not fall short in providing for the family’s financial needs. Moreover, if your clients are proud parents, a child insurance plan is also a must. The plan guarantees a financial corpus for the child even if the parent dies during the policy tenure. So, explain the benefits of life insurance to your clients so that they can secure themselves and their families in the face of unforeseen contingencies.
Understand the needs of your millennial clients and then recommend them the insurance plans which would suit their requirements. You can show them the way to create a fool-proof financial plan with insurance and they can ensure that financial contingencies don’t stop them from fulfilling their dreams.
