Insurance is the best policy

Meet India?s Gen Y insurance holders. Unlike their parents, they do not take out policies simply to save tax, reports Suprotip Ghosh.

Subrangshu Sekhar Biswas is a banker in his 20s. He does not have a car, a two-wheeler or even an iPod. What he does have is insurance cover for cancer.

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Biswas is not alone. A growing number of young, fit, 20-somethings are taking out insurance policies that cover high-risk and expensive-to-treat diseases like cancer, heart disease or diabetes.

Meet India’s Gen Y insurance holders. Unlike their parents, they do not take out policies simply to save tax, or put aside something for a rainy day. Many do not even have families.

What they are doing is some smart investing. According to the insurance industry, the younger and healthier the insurance-seeker, the lower the premium. With an equity-linked insurance scheme which also covers high-risk diseases, the new breed of insurance-holders are increasing their wealth with equities, while ensuring that it does not get eroded by expensive medicare.