Insurance Awareness among Millennials: Current Scenario and the Way Forward

According to the Pre-Budget Economic Survey 2013-14, India will be the youngest country in the world, with 64% of its population falling in the age group of 20-35. The young population of India comprises Millennials or citizens in age group of 20-30, who currently have a stronghold on a significant portion of jobs and marketplaces in the country.

As much as this ambitious and go-getter generation likes to 'work hard and party harder', it does not seem to do justice to its insurance needs, including savings plans and pension plans, in India. As per another survey conducted across all metros and Chandigarh, Lucknow, Hyderabad and Ahmedabad, on 1,400 people with monthly income of Rs. 50,000 and above, 50% of the income was spent on household items, followed by monthly premiums and EMIs.

And while Millennials also topped the list when it came to spending on leisure and entertainment, only 5% of the high spending millennial group's expenditure was towards health, as showed by a survey, Understanding Lifestyle and Attitude Towards Health of Millennial. While the survey revealed a certain level of awareness of the importance of life insurance among those surveyed, another finding from the survey revealed that most Millennials believed that health insurance should be bought before 25 or at least before 30. This reveals the overall low awareness and limited understanding of insurance benefits among the masses, despite the easy availability of life insurance online. 

Insurance Buying among Millennials 

A country, whose major driving force happens to be its Millennial population, can't afford to ignore the present attitude and perception of its youth when it comes to planning and securing the future for themselves and their family. Owing to the critical need of ensuring that the youth invests in saving plans and gets insured, many insurance companies have introduced life insurance plans catering the diverse needs of Millennials, with the convenience of buying them online. The digital platforms on which the insurers in India offer their insurance and retirement plans, such as pension plans and annuities, ensure quick and seamless transactions to the generation that believes in saving time, buying online and doing multiple things at a time.

Although the current figures on the number of insured youth do not correspond with the envisioned number, the rising health awareness and positive shift in fitness trends do give some hope. The more the youth is aware and cautious about their health and protection, the better state they will be in to explore the untapped benefits and protection provided by insurance.

4 cash management tricks you will swear by

Presenting the best budgeting and management tips that will hold your business in good stead always.

The biggest businesses in the country have several financial tricks up their sleeves. No, we’re not talking of money made from malpractice; far from it. Successful companies understand how to manage and allocate their finances so that they always maintain healthy reserves and meet their daily working costs. These are lessons in financial management that all companies must learn.

If you are a business owner wondering how to manage your finances better, consider these 4 simple cash management tricks:

1. Trim the fat. Many businesses today are over-staffed. They also operate out of huge premises. The company spends a lot of money every month paying staff salaries and office overheads. Imagine how much money can be saved by downsizing and shifting to a space that accommodates the remaining staff comfortably. You can put the staff members who you do not need daily on contract or commission-based jobs, or lease out part of the office that is not being used, or even allow some staff to function remotely.
2. Streamline your receivables. Several companies are periodically in dire straits because their customers do not pay them on time. This causes a gap in working capital. Start by billing customers the moment the project is completed. Follow up on unpaid payments diligently. If some customers are habitual late payers, you can incentivise early payments by offering a discount on the bill amount if they pay within 15 days of receiving the bill. Customers will certainly see merit in saving some money – and your bill will be cleared earlier! 
3. Let your bank become your financial manager. Your bank can do much more than hold your business income and clear cheques. Entrust your bank with cash management services for your company. The best banks today offer a gamut of cash management services in India. The bank is better placed to study the company’s finances, offer good products and services tailored to the company’s requirements, and manage payments and cash inflows. Cash management services also encompass forecasting and planning for the company.
4. Be careful about taxes. You may lose a lot of money in penalties and invite the tax authorities’ scanner on your finances by not paying your taxes on time. This omission may not be deliberate, but it can be costly. Hire a competent firm of chartered accountants who can file your tax returns on time and get the payments settled (if you owe tax to the Government). You must also get your firm registered for GST, so you must understand the new taxation regime from April 1, 2017 onward.