As a teenager and young adult, it’s hard to think deeply about the future. You may daydream about your career, spouse, or family, but it always feels distant. Even those who start planning young still struggle to emotionally understand what life will really be like in five, 10, or even 20 years.
But then we start to get older. With each passing year, reality becomes more evident. Our new worries and concerns are things that our past selves could hardly even conceptualize. Risks, threats, and other issues that could impact our loved ones and us start to take priority. Rather than wishing for things we don’t have, we begin to want to protect everything we do have.
Like the generations before them, most Millennials are now well into this journey. And they are probably starting to realize just how important insurance can be. Anyone who hasn’t yet come to this conclusion should probably start today.
Why? Because there are some great benefits of insurance that all Millennials should embrace now.
1. Financial Protection
The primary goal and largest benefit of insurance is its ability to protect your bank account. Because people can never fully eliminate risk — no matter how hard anyone tries — insurance allows you to pay a small sum over regular intervals to a third party that agrees to take on that risk for them.
This practice, known as “risk transfer,” can be seen most easily in everyday life in the form of auto insurance. Chances are, if you drive for a few decades, you will be involved in an auto accident. Paying a monthly auto insurance premium protects you — and anyone else involved —from suffering a major financial fallout if a serious accident occurs.
This form of insurance, and the resulting benefits, is usually compulsory by state law. But the government is doing you a big favor by helping you protect yourself on the road.
2. A Sound Body
Healthcare is among the most important things we all need in life, and young adults gradually realize this. A few decades ago, there wasn’t as much awareness and discussion about healthcare as there is today. Even the biggest and strongest among us can fall victim to disease and accidents.
With a rise in hospitalization costs and growing inflation, it has become the need of the hour to look after our health and wellness. So we need to know that we will have access to quality medical care if anything goes wrong.
Rising medical costs make health insurance absolutely vital. Since the cost of high-level treatment and medical services are so high, health insurance is something all adults must prioritize. When you acquire insurance at a younger age, the monthly cost is likely to be cheaper today than it will be when you are older. If your employer does not offer medical insurance, there are several good options in the marketplace.
Here are a few tips to help you focus on your health:
- Since the costs of health insurance have been volatile over the years, every millennial should ideally calculate the amount they can and are willing to pay at the end of each month.
- You can choose the best cover by comparing the different offers that are available.
- If your lifestyle isn’t high risk, one way of keeping your monthly payments down would be to opt for a high deductible plan which is more affordable than a general plan.
- An insurance plan offered by your employer is more likely to be cost-effective.
- If your prescriptions are also covered by your insurance plan, you will save more when you use a regular prescription.
3. Family Security
We all work our tails off to provide for those we love. For most people, starting a family is one of life’s greatest joys, and raising children is as good as it gets. After experiencing this, there is usually one thought that always sticks with you: I want to protect these people no matter what.
Much of the younger generation is under a constant threat of stress and anxiety which leads to bad decision making. As you grow, you may find it more and more essential to safeguard your health. An unhealthy lifestyle can lead to hefty medical expenses.
Risk transfer to the rescue again! Life insurance benefits are the best way to provide security for your family — even in a worst-case scenario where you unexpectedly pass away. The financial blow of these sudden illnesses can be cushioned by a good health investment plan.
Hopefully, you live a long life into old age, and your loved ones will never need to deal with financial stress at the same time they grieve. You can always reinvest the money saved from a tax benefit on the health insurance premium in better investments. However, through a very affordable form of insurance, they will at least have one less problem to deal with if tragedy strikes.
Benefiting From Insurance And Risk Transfer
When you’re 20 years old, risk isn’t something you take very seriously. You’re aware it exists, but it isn’t a pressing worry day-to-day. You might even feel invincible and willing to accept the personal consequences if unlikely events strike.
Then you get older and you start to feel like you have a lot more to lose. And it’s around this time that you begin to seek out options to stay safe. No matter where else you look first, few things can offer as much protection as insurance. It will safeguard your finances. It will ensure you always have access to healthcare. And it will offer you family security if the worst comes to pass.
So now, knowing how much it can provide, any Millennial should be able to see just how important insurance really is. And armed with this knowledge, you can now use it as a tool to help you prepare for the next five to 10 years of your life. Make sure you compare different insurance plans online (they’re easy to find) and read all the policy documents given to you before settling on a plan!