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.