Artikel diperbarui pada 13 April 2023.
Many people think that insurance is only for those who are old, but there are actually many reasons why it is important to use insurance for millennials.
So you don’t have to wait until you get old to have insurance. But there is nothing wrong if you have it when you are young.
There are so many reasons that make someone have to have it even though they are young. Especially for the millennial generation, which is currently a very productive age, of course it is very important to have insurance.
Knowing What is Insurance?
Before further discussing the reasons for the importance of using insurance for millennials. Before that, first understand the meaning of insurance itself, maybe some people are familiar but some do not understand it.
Insurance is a form of agreement made by both parties. The two parties include the insured and the insurer. Both agree in an agreement that has been mutually agreed upon.
Usually in conducting insurance, both parties have their respective duties and rights. For example, the insured is obliged to provide or pay contributions to the insurer. Then the insurer will provide compensation if something unexpected happens.
Simply put, the insured is us, the millennial generation as customers. While the insurer means the insurance company that is used as a place to do insurance.
Based on the understanding that has been explained earlier, at least there is already a small picture of the reasons for the importance of using insurance. Although it has not yet gone into the core of the discussion.
Then another question, why should make insurance early or for the millennial generation? At least there must be some people who have questions similar to this.
If you also have the same question, then it can be answered based on the lifestyle of the millennial generation itself. Before further discussing their lifestyle, first know that this generation is a generation that lives in the midst of technological advances.
Unlike the previous generation, most millennials spend a lot of time on social media. And tend to have a habit of doing online shopping.
Based on these habits and lifestyles, it is only natural that millennials must be able to manage their finances properly. Don’t let negative habits disrupt your finances.
4 Reasons for the Importance of Using Insurance
As has been described about how the lifestyle is owned by young people or the millennial generation today. It is clear that the reason for the importance of using insurance is clear.
For those of you who are also part of the millennial generation, you certainly will not argue with these living habits. Therefore, with these lifestyle habits, it must be balanced with good financial management.
Apart from saving and investing, there are still other things you need to do. One of them is by doing insurance while still young. For more details, here is a description of the reasons:
1. More Affordable Cost
The reason it is important to use insurance when you are young or productive is because the costs are more affordable. That way the costs that need to be incurred will not require a lot of money.
The reason for this cheap or affordable premium cost is because at the age of around 20-30 years it is usually still in prime condition. Both in health and other things.
It will be different if you start doing insurance when you are 30-40 years old. Because at that age health begins to decline, that is what makes the premium cost more expensive.
2. Easier Submission Opportunities
In addition, the reason for the importance of using other insurance is because the opportunity to submit is easier. This happens if insurance is carried out from a young age, especially for the millennial generation.
There are many reasons why the opportunity to submit is easier. One of them is because when you are young, usually no comorbidities have been detected so that it is easier to accept the application.
Whereas when the age has reached 40-50 years old, it will be much more difficult to do. For insurance customer participants at that age, they usually get extra attention because they have the risk of comorbidities and also death.
3. Can Be Used as a Financial Management Tool
Another important reason for using insurance is that it can be used as a financial management tool. Surely millennial generation children have many activities that spend money on things that are not important.
For example, used for snacks, to buy goods online and so on. Therefore, you should be able to allocate funds properly, one of which is with the help of insurance itself.
By joining the insurance program, at least there are dependents that need to be done. So you will not spend money arbitrarily in the future.
4. Get Protection
Another reason why someone, especially the millennial generation, feels the need to do insurance since young is to get protection. As a human being, you certainly cannot predict things that will happen in the future.
Because you cannot predict what will happen, having insurance is important. That is the reason for the importance of using insurance for the millennial generation.