When is the Right Time for Millennials to Have Insurance ?

When is the Right Time for Millennials to Have Insurance ? - Millennials are often asked the initial question "when". From when to start traveling to Europe? When to have a car? When is it to be the boss? Until when to mate? Hmm... Actually, there is one question that is important to ask millennials, but it is rarely said, namely "When to have insurance?"

Like saying, insurance and millennials are only limited to knowing, but not knowing yet. Millennials -or those born in the 1980s to mid-1990s- often argue that insurance for millennials is not an urgent need. "Isn't I just healthy, why should I have insurance?" There are also those who reason "I have worked and got insurance from the office. Why should I have insurance for millennials again?"

The two statements were made not without reason. Because, in fact, the number of insurance policies in Indonesia is still very small compared to the millennial population. A simple count, according to a Bappenas survey, of Indonesia's total population of 265 million people in 2018, a quarter were millennials. Meanwhile, data from the Indonesian Life Insurance Association states that the number of insurance participants is only around 16 million. That figure is still cumulative from various age groups, not only millennials but also parents and children are included in it. You can imagine, that there is still a low awareness of the millennial generation to have insurance.

Well, from what age should insurance start to be owned and why should people have insurance? What kind of insurance fits the needs and pockets of today's millennials

While still young

In this era of technology, everyone wants to quickly acquire something. In principle, the sooner, the better aka the sooner, the better. This is also true in the world of insurance. The younger a person has insurance, the cheaper the premium will be paid. How come? Here's why.

One of the considerations why one should have insurance while young is because premiums are relatively cheaper. When a person takes out an insurance policy, one of the calculations applied is a medical history. Millennials in their 20s or 30s tend to have a better medical history than the age group above them. Thus, they are more spared from the risk of critical illness or death which has the potential to cost a large amount of treatment.

The second reason -which sometimes escapes the minds of millennials- is that they don't have many dependents. That's why while you are young, income can be allocated to more important expenditure items such as having insurance. 

But in fact, the idle money of young people is still spent more on daily needs than on saving or investing. This was revealed in the Indonesia Millennial Report 2019 which stated that 51.1% of millennial income was spent on their monthly needs. Meanwhile, only 10.7% of it is used for savings.

So, when should you buy life insurance?

Since the principle is the sooner the better, then the answer is as soon as possible. The longer a person delays having insurance, the more expensive the premium will cost to be paid in the future.

After all, the financial condition of a person will change as he grows older. When we enter the age of 35 or older, we may be married and have children. Plus, it has to finance home loans and private vehicles. With more dependents, our finances are also very limited.

On the other hand, the need for insurance is increasingly urgent as retirement approaches. That's the reason why you have to have life insurance, again, buying insurance when you are young while still being able to TikTok is the right and wise choice.

What kind of insurance for millennials is the right one right now?

Actually, this depends on how much protection millennials want to get from that insurance. Because this is related to the number of premiums that millennials must pay later.

However, interestingly, many millennials today want to take advantage of their youth to become entrepreneurs as well as learn to invest. If they currently dare not start a mutual fund, they can still buy products that combine insurance and investment that of course can provide benefits for them.

One of the recommended products is MiSmart Insurance Solution (MiSSION) which has just been launched by Manulife Indonesia. This product is suitable for millennials who are starting to have insurance for the first time because it combines protection and investment and options to add health insurance for the convenience of millennial life. 

As insurance for millennials, MiSSION provides affordable premiums with insurance benefits needed in realizing the life mission of millennials. Just imagine, just by paying premiums starting from IDR 4 million per year, millennials can get investment benefits from the premiums they pay. In addition, MiSSION provides a total loyalty benefit of 750%, as well as life protection for life with optimal SumTangunggan.

Again, there are many considerations in buying insurance for millennials. One of them is age. The sooner you buy insurance, the more benefits you get. Remember, we may not be able to predict the future however, we can start preparing ourselves for everything that happens in the future.

So, don't be confused when you have to answer the question "When to mate?" Importantly, whenever the special day comes, young Indonesians are ready to be born-in-house because they are equipped with MiSSION, insurance for millennials. Agree?