Millennials are often asked the initial “when” question. When did you start traveling to Europe? When do you have a car? When are you boss? Until when are you married? Hmm… Actually, there is one important question to ask millennials, but it is rarely said, namely “When do you have insurance?”
"I'm in good health, why should I have insurance?"
It's like
saying, insurance and millennials only know, but don't know. Millennials -or
those born in the 1980s to the mid-1990s- often argue that insurance for
millennials is not an urgent need. "I'm in good health, why should I have
insurance?" There are also those who reasoned, “I already work and get
insurance from the office. Why should I have insurance for millennials again?”
These two
statements are not without reason. Because, in fact, the number of insurance
policies in Indonesia is still very small compared to its millennial
population. The simple calculation, according to a Bappenas survey, is that of
Indonesia's total population of 265 million people in 2018, a quarter are
millennials. Meanwhile, data from the Indonesian Life Insurance Association
states that the number of insurance participants is only around 16 million.
That number is still cumulative from various age groups, not only millennials
but also parents and children included in it. Can you imagine, the millennial
generation's awareness is still low to have insurance.
So, at what
age should you start having insurance 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 get something fast. In principle, the sooner,
the better aka the faster, the better. This also applies in the world of
insurance. The younger a person has insurance, the relatively cheaper the
premiums to be paid. How come? Here's the reason.
One of the
reasons why someone should have insurance while young is because the premium
cost is relatively cheaper. When someone takes an insurance policy, one of the
calculations that is applied is a medical history. Millennials in their 20s or
30s tend to have a better health history than those in the older age group.
Thus, they are more protected from the risk of critical illness or death that
has the potential to cost a lot of care.
The second
reason -which sometimes escapes the minds of millennials- is that they don't
have many dependents. So while still young, income can be allocated for more
important expenditure items such as having insurance.
But the fact
is, the idle money of young people is still more spent on daily needs rather
than saving or investing. This is revealed in the 2019 Indonesia Millenial
Report which states that 51.1% of millennial income is spent on their monthly
needs. Meanwhile, only 10.7% of it is used for savings.
So, when should you buy life insurance?
Because the
principle is the sooner the better, then the answer is as soon as possible. The
longer a person delays getting insurance, the more expensive the premiums that
must be paid in the future.
After all, a
person's financial condition will change with age. By the time we reach the age
of 35 or so, we may already be married and have children. Plus, you have to
finance home loans and personal vehicles. With more dependents, our finances
become very limited.
On the other
hand, the need for insurance is getting more urgent as the retirement age is
getting closer. That's the reason why you have to have life insurance, once
again, buying insurance when you are young while you can still be TikTok is the
right choice as well as a wise one.
What kind of insurance for millennials is right now?
Actually,
this depends on how much protection millennials want to get from the insurance.
This is because this is related to the amount of premiums that millennials will
have to pay later.
However,
what's interesting is that many millennials today want to use their youth to
become entrepreneurs and learn to invest. If at this time they have not dared
to start mutual funds, they can still buy products that combine insurance and
investment which of course can provide them with money.
One of the
recommended products is MiSmart Insurance Solution (MiSSION) which was recently
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 as well as the option to add health insurance for
the convenience of millennial life.
As insurance
for millennials, MiSSION provides affordable premiums with the insurance
benefits needed to realize the millennial life mission. Just imagine, just by
paying premiums starting from IDR 4 million per year, millennials can get
investment benefits from the premiums they pay. Plus, MiSSION provides a total
loyalty benefit of 750%, as well as lifelong protection with optimal Assured
Money.
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, but we can start preparing for everything
that happens in the future.
So, don't be
confused when you have to answer the question "When are you getting
married?" The important thing is, whenever that special day comes, young
Indonesians are ready to be physically and mentally ready because they have
been equipped with MiSSION, insurance for millennials. Agree?