DOES A MILLENNIAL NEED LIFE INSURANCE?

What Is the Opportunity Cost

If you’re a millennial, then you’re at most 35 or 36 years old. With a few more sticks, the label of young can be under discussion, but come on, in your case, it is beyond any doubt that you are. So, you would have to be crazy to tell you that you need life insurance. The thing is, yes, we are a little crazy.

First of all, you have to know that life insurance, like love, has no age. It has nothing to do with youth but rather with the existence of more or less long-term projects. And you have them, right? Actually, from the moment you consider any project that depends on you, you are already in the field of life insurance.

If it is an acquisition that you will be paying little by little over time, you have to know that there is a probability that something will happen halfway through that will prevent you from continuing to pay. Surely you will think: “That is not going to happen to me…”, but in that case, you run all the risk. Here the one who does not risk does not win does not work; here, look at you, sometimes the one who doesn’t take risks wins.

But don’t worry, we’re not going to get dramatic. Don’t get overwhelmed because you’re lucky you don’t have to; After all, statistically speaking, the probability of something bad happening to you is the same as flipping a coin 2,500 times without getting a single head.

Most of the Erie Insurance products offered on the market are savings: you buy them and enjoy them yourself. You’ve seen the piggy bank a thousand times, and that’s what savings insurance is.

Most of the insurance products offered on the market are savings: you buy them and enjoy them yourself.

With the surprise that someone can even guarantee that you will get more coins than you put in. What the insurance does is guarantee a return on your savings, or, if it doesn’t, offer you a series of investment alternatives between which you can move, optimizing your results.

Thus, things like financing a master’s degree or a study trip outside of Spain, becoming independent, or something idler, are things that can be done through savings insurance. Taking away a drink every Saturday, maybe you can leave home, for example.

Some products even have tax advantages in your personal income tax. And that is something that benefits you. No one is going to take money from you. On the contrary, it can even grow. You just have to mentalize yourself a little and not be such a cicada even if you continue in your carpe diem of eternal youth. Everything is supported. Even if you don’t party in Ibiza or go to Punta Cana, when you retire, you will have other entertainment that will also cost you money.

You have to know one thing, and that is that you have something very valuable for savings that the old do not have. You have, even if you are not very aware of it, the most precious merchandise for good savings and without much effort: time.

How does your savings grow?

Savings, especially those that have a minimum financial guarantee, always do better the longer you allow them to work. This is so because it works through compound interest. What is that? It is something as simple as that the first year your savings give a return on what you put; the following year, the return is obtained on what you already put in plus the accumulated return of the first year.

Saving is like a plant: the sooner you plant it, the taller it will be today.

Thus, as time passes, savings grow more; and if little time is saved, logically, it grows less. Saving is like a plant: the sooner you plant it, the taller it will be today.

And you will be thinking, “With what I earn, it is impossible for me to save. Saving is for the rich,” but that is not true, really. Because saving, no matter how small, is fruitful. A person with more money will probably save more than someone with less; that much is clear, but that does not mean that it is more thrifty. The really important thing is not to save a lot, but to give savings time, whatever it is, to work.

The rationale is that the younger you are, the more you take care of your retirement.

What happens if you save 10 euros every month?

Like when you let the yeast act on a cake in the oven. Or like when you run, they always say that endurance is more important and not so much speed and getting tired sooner. The key is time.

It is obvious that there are many World Cups left and many outdated nights until the day you retire. But that time will come. And, although it may seem that the normal thing is not to think about it, in reality, the rational thing is that the younger you are, the more you take care of it; for the simple reason that being young, you can afford to deal with that problem through fairly modest efforts. You have your whole life ahead of you to save without realizing it, and nobody is going to take away any party, but the savings will give you more when you retire.

By Master James

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

No widgets found. Go to Widget page and add the widget in Offcanvas Sidebar Widget Area.