A recent survey by Deloitte reveals that a high percentage of Gen Zs feel stressed, aren’t confident whether they will be able to retire with financial comfort, and don’t feel financially secure. Most of them lead a healthy and active life which puts them off from thinking of Insurance as a necessity. However, they haven’t been able to connect wellbeing and life insurance yet. The benefits of a life insurance policy start reflecting only in the long run, and it is easy to assume that it is not paying off- but it is! On National Insurance Awareness Day, Mr. Vinit Kapahi, Head of Marketing, Aviva India, shares 3 things Gen Z should know about life insurance.
“Gen Zs are just beginning their career, hustling and are busy working hard in this fast-paced world, has and often don’t have the time and skills to manage their financial portfolio optimally. For such people, Unit Linked Insurance Plans (ULIP) provide an effective way to participate in the market as well as an insurance cover to deal with uncertainties of life.” Kapahi said.
Adding to that, Vinit Kapahi further emphasized the significance of a guaranteed plan for an easy retirement. “A Guaranteed Plan is a financial product that provides guaranteed payments in a lump sum or as regular payouts over a period of time. One just needs to pay their premiums and choose how they wish to receive their returns – monthly, quarterly, half-yearly, yearly or all at once.”
Lastly, he concluded by suggesting that life insurance is a tax-saving instrument. “Life insurance policy can also help purchasers save money on taxes under Section 80C of the Indian Income Tax Act. One can claim a deduction from their taxable income on the premium paid towards life insurance for self, spouse, or children up to Rs. 1.5 lakhs.” he explained.