According to the 2018 Life Insurance Gap Survey, only 10% of millennials – born between 1981 and 1996 – have life insurance*. If you’re one of the 90% who don’t own one, this means that your family will be left without any financial support should anything were to happen to you.
Ask yourself this: In the event of your demise, will your family have the financial coverage to settle your outstanding debt? Will your partner be able to support the family without your income contribution?
Getting a life insurance can provide your parents, spouse and kids with the financial coverage that they need after your passing. If you’re still not convinced, here are three reasons why you should get life insurance sooner rather than later.
Cheaper when you’re young
According to the 2018 Insurance Barometer Study, 44% of millennials overestimate the price of insurance by up to 5 times the actual price**. In fact, the daily cost of a good life insurance policy is less than the price of boba tea! Life insurance premiums are calculated based on, among other factors, your age and your state of health. You pay much less when you’re young and healthy.
Security for your future self
An emergency fund is vital but may not offer sufficient safety net for meeting your financial needs in the event of an emergency. Today, life insurance offers multiple added benefits such as health protection and even wealth creation for your retirement.
Protection for your loved ones
In addition to death coverage, some policies also offer protection against critical illnesses or total permanent disability. These policies can provide financial protection for you and your loved ones through coverage such as income replacement, loan repayments and living expenses.
Even if you don’t have financial dependents yet but are planning on starting a family in several years, getting life insurance now makes more financial sense than postponing the inevitable.
More tax relief for life insurance holders
If you’re paying income tax, you’ll be happy to know that life insurance tax relief has been separated from EPF tax relief – now you can claim tax relief up to RM4,000 for EPF contribution and up to RM3,000 for life insurance. Certainly another reason to purchase life insurance if you’re already thinking about it!
Life insurance isn’t for everyone, but for millennials, especially those with a family or about to start a family, the most far-sighted decision you can make today is to purchase life insurance. Find out what coverage you can get from our life insurance products. In fact, go one step further and inspire your fellow millennial friends by sharing this article.
This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions towards positively improving welfare and well-being of communities. This is one of our many efforts to achieve CIMB’s purpose of advancing customers and society.