Real reasons to get Life Insurance while you're still young
The benefits of getting insured early
We all know that feeling of being young and invincible. Nothing can touch us because we're invulnerable—and why would we need insurance? We'll never get sick or injured because we’re so busy living our best lives and being young and fabulous. And we're certainly never going to die. Right? Not to mention with an entry-level job paying barely enough money to cover expenses, there's no reason to purchase unnecessary life coverage right now.
Wrong.
Even thinking about it makes our heads hurt. But the truth is, no one is invincible. So while we may not like to think about it, bad things can happen to anyone at any time. And I get why you don't have the headspace right now for your own mortality. But the thing is, life insurance is not just money for when you die. So hear me out.
Get cover that’s about life, not just death
Hey most people think life insurance is only for after you die, but that's not true! You can actually get covered while you're still alive. So, if anything happens like cancer or heart disease pops up later in life without any warning signs, you'll still be taken care of. How would you like to maintain your lifestyle if you were unable to work due to illness or injury without the burden of debt? It's possible with income protection, which pays you a monthly payment against illness or injury like a sudden back injury or even a long-term mental health condition leading to time off work. Wouldn't that be nice?
And if that's not enough, there's also the hot topic of inflation to consider. Over time, the cost of living goes up and this includes dumb 'ol cost of healthcare. By getting insured early, you won't have to worry about costly hospital bills or getting a crazy amount of debt when life throws you curveballs. Talk about a win-win!
You'll be glad you did it early
(and cheap)
For starters, life insurance is cheaper when you're younger for one main reason - as your body catches up to speed, it becomes more difficult and costly because you become a greater risk to insure. Insurance companies see young people as less of a liability because they are usually healthier and have a smaller chance of making a claim. So, if you're looking to save money, getting insured early is definitely the way to go.
In addition, since younger people are generally healthier, when applying for cover you’ll be much less likely to have an exclusion or premiums loading on your policy due to you being in a better health condition. Exclusions and loadings can greatly increase the cost or limit what is covered in your policy, but getting covered early means less hassle down the line!
Counter that nasty debt comeback!
We all love a good comeback story—except when it's the bad guy who returns!! You know the type, the one who just won’t stay down no matter how many times you think you’ve finally knocked them out for good? We all have that one friend. or maybe it’s multiple friends. But I think we can all agree that when it comes to debt, this is definitely not the kind of comeback we want to see in our lives.
According to the OECD data released in 2015, Australian households are spending more than they earn and have been for the past three decades. In just twenty years, our spend-to-income ratio has doubled from 104% to 212%. This means that Australia now has some of the world's highest levels of personal debt! Ouch!
This is still a sensitive subject for many of us and we’re all still trying to recover from the previous global recession that took place not too long ago. The point is, when you’re in your 20s or early 30s, it’s important to be aware of the potential for debt to make a comeback in your life. So how do you prevent debt from biting you when you’re least expecting it? Well, one way is to get life insurance. This way, if something happens and you're unable to work, your insurance will cover your expenses and help you stay afloat until you're back on your feet.
The one money move you're probably not making
(but should)
When was the last time you ended up ordering a cup of coffee, because life just isn't complete without one of these warm treats in your hands! If so, then I'm here to tell ya-you're welcome. But I'm also here to tell you that if you're like most people, this small daily purchase is probably one of those money habits that is costing you a lot.
You see we all have what's called the "latte factor." It's those little daily purchases that we mindlessly make that really add up over time. And if you're in your 20s or early 30s, there are probably lots of other things on your mind too - advancing in your career, socialising, and for some of you, maybe even starting a family. So, the last thing you want to do is think about something as depressing as life insurance. But instead of just living it up and racking up debt, you can be making a savvy financial move by getting insured because as it turns out, there are quite a few good reasons why you want to start young.
Sleep well at night knowing you're protected
Putting your worries behind you and taking care of business means peace of mind. Whether it be unexpected costs or just day-to-day living, getting insured early will ensure protection for yourself (and your family) should something happen in life! Here's a quick look at some things that life insurance can cover:
Death cover: Pays you a lump sum if you pass away.
Total and permanent disablement (TPD) cover: Pays you a lump sum if you were totally and permanently disabled (TPD) that can help covers the costs of rehabilitation & living expenses.
Trauma: Pays a lump sum if you are diagnosed with a specific major illness, this can help pay for treatment and cover cost of time off work.
Income protection: Covers part of your income in case you're unable to work due to an injury or illness.
Got no clue where to begin when it comes to the process? We can assist you!
We understand that there's a lot to think about when it comes to life insurance. But don't worry, we're here to help you every step of the way. Our team of insurance experts are on hand to answer any questions you might have and help you find the right policy for your needs. Of course, it's not compulsory. But it’s a smart financial move that could save you and your loved ones a lot of heartache (and money) down the track.
Trust us, your future self will thank you for it!
Speaking of responsible adulthood, book a call with one of our advisers today to get started with sorting out your personal insurance. We know it's not always the most exciting place to be, but hey - at least you're getting it done!