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 “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?


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