By Corli Basson, Underwriting Manager at 1Life
There is a notion that when you are young you don’t necessarily need life insurance because you are still healthy and full of life. However, life insurance is crucial at any life stage; in fact, young people are likely to pay lower premiums. Death is always an uncomfortable thought, which is why most young people tend not to think about life insurance.
If the Covid-19 pandemic has taught us anything, it is that life is unpredictable. Whether you’re young or old, it is important to ensure you’re protected in the event of death, disability, loss of income or severe illness.
Busting life insurance myths
You don’t need life cover when you are young. Just because you are young doesn’t mean you won’t experience unexpected illness, disability or even death. These can impact anyone, at any moment in life, and life insurance will ensure that you and your loved ones are protected. Life insurance is expensive. There are many misconceptions and confusion when it comes to life insurance – and how it works. Many young people overestimate the cost of life insurance, but with a little online research they can easily get comparative quotes and a life insurance policy that is suitable for their budget. Why get life cover when you are healthy? Your health is one of the determining factors in how much you ultimately pay for life insurance. So, taking out a life insurance policy before you develop any health conditions, like high blood pressure or diabetes, will ensure you pay lower premiums.
The realities of having life cover at a young age
Your premiums will be much less. Young people generally enjoy better health, and this means you are likely to pay lower monthly premiums. When it comes to life insurance young people are also less likely to claim, which makes them a lower risk to cover. Don’t leave your loved ones in debt. You may have financial commitments such as credit card debt, car financing or paying off your student loans. Your life insurance will ensure your loved ones are protected from the burden of paying off your debt should you pass away. Financial support for your family. If you’re financially supporting your loved ones in some way, a life insurance payout will help them support themselves when you are no longer around.
Insure what is important to you. One of the first things young people consider when they get a job, are often physical assets – like buying a car and insuring it, purchasing the latest smartphone (and insuring it), or moving out to home into an apartment (with home insurance), so why not insure your life too? Provide for life’s uncertainties. Your life insurer may offer living benefits for protecting your income should you become severely ill or are unable to work for a prolonged period. With dread disease cover, you will get much-needed financial support should you be diagnosed with an illness, such as cancer or suffer a heart attack.
Tomorrow is never promised
Getting life insurance may often feel unnecessary when you are young. However, do some research, get financial advice, and gather all the facts first. While time may be on your side, take the opportunity to protect your financial future, now – as well as that of your loved ones.
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