Life insurance? Sounds like something your parents worried about, right? But you are wrong. Just like any other person from your GenZ cohort, you must be chasing financial independence, thinking about building your own business empire or planning to retire early. In that case life insurance isn’t just relevant to you, it’s actually a power move. Today’s life insurance plans are not just about protection, they are about building wealth, securing your hustle, and giving you the freedom to take risks without looking over your shoulder. Whether you are launching a startup, diving into the FIRE movement or just making sure nothing derails your financial game then life insurance can be your secret weapon. Still think life insurance is just for boomers. Read on.
More than a safety net
One of the advantages of a life insurance is that today it has evolved beyond just providing risk protection. Today, policies are tailored to suit specific needs and come with investment and savings components that help build wealth over time. Unit Linked Insurance Plans (ULIP), guaranteed return plans, endowment and saving plans are few life insurance plans that help you in growing your wealth in addition to securing your life.
ULIPs combine life cover with the market-linked investments letting you enjoy the best from both the worlds – Insurance and Market investment. For instance, you can become financially independent through the corpus built from your ULIP plan. Using this corpus, you can kickstart your YouTube channel or a small startup without depending much on others and create something great out of these projects. In case of any unfortunate event to you, the payout from the ULIP would let your dependents continue your dream.
Guaranteed return plans provide you inflation beating returns which are guaranteed at the time of purchasing the policy. This lets you secure your returns from market volatility and in diversifying your portfolio. Suppose you plan to pursue education from one of the best institute or plan an international trip, then you would be seeking an instrument like this that can guarantee you the returns.
Income-based policies, such as endowment and moneyback plans, provide regular payouts, supplementing your future earnings. With a focus on pure protection, you can also buy a term insurance plan and features like return of premium would let you get back the premiums you have paid to secure your family. Life insurers also provide annuity plans catering to your retirement life.
This unique versatility in the life insurance products gives flexibility to the you to plan your investments and turn your dreams into reality. With life insurance, you are not just funding your goals, you are also protecting them.
Power of starting early
Now that you have realized the power of life insurance, let’s understand how buying a life insurance early put’s you one step ahead of your cohort. For example, Rohan and Karan, both 24, are close friends and decided to retire early. Rohan decides to buy a life insurance policy today, while Karan plans to get one “later.”
Fast forward to the time of retirement, Rohan enjoys low, locked-in premiums and has built up financial protection, plus potential investment returns. Karan, however, is not so lucky. As he purchased insurance closer to his retirement, his premiums are significantly higher for the same coverage. Also, the chances are that if any health issues arise, his policy options might be limited. His returns would also be less due to less time for compounding.
Choosing life insurance early ensures that you and your family are protected in case of an unfortunate event and gives your investment enough time to compound so that you have sufficient corpus to fulfil your goals.
Taking the first step
By now you must be excited to explore more about the life insurance plans. Do you know you can explore and buy these plans conveniently from your home. All you need to do is visit the life insurer website, read about their plans, see how they can align with your goals, use the plan calculator, check the premium or returns and proceed with the purchase.
Life insurance is no longer just a safety net, it is a strategic tool for the GenZ.
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