Home Discover Journals As a gen Z with a huge student loan, should I really invest in insurance?

As a gen Z with a huge student loan, should I really invest in insurance?

By Finserv MARKETS - Aug 3,2019
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As a gen Z with a huge student loan, should I really invest in insurance?

Investing in an insurance policy provides manifold benefits that become apparent over a long period of time. As a Gen Z student, presumably you have spent a lot of time on the internet which has probably advised you on the different kinds of investment and insurance options open to you. While a lot of information has been shared with you, it is likely that the weight of your student loan is weighing you down from taking any decisive steps in seeking out either insurance options or investments.

Insurance plans prove helpful as a back-up cover for any of your needs. Whether you are travelling, buying gold, or undertaking any other kind of experience that is different from your regular chores, an insurance cover will prove useful.

Read on to learn a couple of reasons as to why you should consider buying insurance while you are still young.

  1. Your insurance plan will prove cheaper when you are younger. Life insurance plans will be offered to you at a considerably cheaper rate when you are young. Your good health now will prove to be a major consideration when you set out to buy life insurance. Plan out your financial responsibilities well, and then pick an insurance cover that suits you best. If you have parents or other family members who are dependent on you, make sure to provide for them as well.
  2. You may not qualify for life insurance later. The older you get, the more uncertain your life becomes. Illnesses and diseases owing to dropping immunity levels are associated with getting older. As a result, your insurability drops and insurers might not be too keen to provide you with cheap policies anymore.
  3. Supplement your retirement goals. The older you get, the more unlikely you are to work or to be in a position to earn what you need to have a comfortable retired life. Investing in a good insurance policy now will allow you to reap the benefits at a much later stage. You can also invest in mutual funds, which are a bouquet of equity funds and other securities – thereby providing you with the choice to select a fund that is aligned with your own needs. Mutual funds, available on Finserv MARKETS, offer a variety of funds, some of which invest exclusively in equity, some invest exclusively in debt securities while some are a mixture of both. This portal’s “Zero Commission” feature is especially attractive since a large part of the expenditure when you invest in mutual funds comes from paying brokerage and commission fees.
  4. Insurance helps deal with debt. A multitude of insurance policies offer a multitude of benefits, but the best insurance plan will help you erase any debts you might have built up. A comprehensive life insurance plan can help you pay off your debt very early. As previously mentioned, the younger you are, the more insurable you are; and thus, you can afford to weigh your options before you select an insurance plan. Compare the plans that are available to you, and choose the one that offers you the most benefits in terms of the debt you have already incurred via your student loan. You can also choose to invest in mutual funds, which are a great investment vehicle for wealth creation over the long-term as well as for goal-based plans. Mutual funds, available on Finserv MARKETS, provide counsel and market analysis and present you with a bouquet of funds you can choose from, including funds that are exclusively investing in equity or debts; or hybrid funds that invest in a mixture of both equity and debt.
  5. Insurance is a tool for forced savings:
    While savings is not on the top of anybody’s mind while they are still in college, you can’t help but acknowledge the importance of savings the older you get. By investing in an insurance, that is a part of your money you are locking away and this ensures forced savings for achieving your long-term goals. Whether you want to travel, or buy a vehicle, insurance will come to your rescue whenever you need aid of any kind in case of unanticipated problems.

Insurance is a great tool for investment, no matter how old you are, but as a Gen Z individual with a huge student loan, it is very beneficial. You can also choose to invest in mutual funds, available on Finserv MARKETS, which can help you significantly in multiple ways, including in paying off your student loan.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere”!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522