Life insurance is a basic financial need that should be a part of one’s financial planning. Life insurance helps safeguard one’s family and oneself against two types of financial risks – untimely death and old age. The untimely death of a breadwinner places a family at a risk for future livelihood expenses and the risk of living too long or old age is that during retirement years the income-generating capacity of an individual reduces significantly.
Protecting future income is very critical at every age of an individual. Further, the protection needed also needs to be assessed periodically to ensure that the amount of protection is in accordance with the individual’s current income, lifestyle and future needs.
India has always boasted a younger population, however, every year this “younger population” keeps ageing. To put this into perspective; India has one of the largest millennial populations, estimated at 426 million, and is approximately 34 per cent of the total Indian population and forms approximately 47% of the total workforce. This generation has started hitting the age group of 40 and within the next 10 years, the majority of this population would be in their 40s. The Pandemic has also raised awareness levels in the last 2 years. Many individuals hitherto resistant towards insurance are open to discussing and buying insurance now, especially individuals with families along with liabilities like home loans, etc. A large portion of this customer segment is in the age bracket of 40-45.It is very critical to evaluate one’s insurance needs and decide the best insurance solution when looking to buy insurance while in this age group.
It is very critical to note that it is never too late to avail of the security brought by insurance protection for one’s family despite the added costs. However, when one buys insurance at an age over 40, the customer needs to ensure that they are taking the plan that best suits their needs and provides sufficient coverage based on the current financial situation.