Why sorting life insurance in your 30s is a smart move
Hey there, thirty-somethings! Life insurance might seem like one of those things you can put off for later, right? But there are some pretty solid reasons to start thinking about it now. If you're in your 20s or 30s, life insurance is probably easier and cheaper to buy than you think. And It's not just about peace of mind – it could actually save you some serious cash down the road. So, let's dive into why investing in life insurance in your 30s is a smart move.
because you're in top shape
When you're young and healthy, it's easier to get covered and your premiums are much lower. Plus, if you develop a serious medical condition later, having insurance already in place means you won't have the hassle and extra cost of getting insured with a pre-existing condition.
An insurance study found that 42% of millennials think they wouldn't qualify for coverage. Compare that to 24% of Gen X (ages 37-52), 20% of baby boomers (ages 53-64), and 15% of seniors (65 and older). But millennials, the youngest group, are actually the most likely to snag the best rates.
because debt happens
Credit cards, student loans, car payments, and holiday expenses can all add up. If you're self-employed, business-related financial commitments can also pile on. Life insurance can cover these debts so your family doesn’t have to.
Research shows that millennials, often buried under hefty student loan bills, struggle to set money aside for other priorities, including life insurance and home ownership.
Life insurance offers a crucial benefit for student loan borrowers: it can cover the outstanding loan amounts, preventing these debts from becoming a financial burden on loved ones. By securing a policy that addresses the amount owed to lenders, individuals can ensure their loans won't negatively impact their family's financial stability.
because you've met your match
As you move into committed relationships, your finances start to blend. If you get sick or injured and can't work, income protection can help you and your partner manage the bills, so you can focus on getting better.
Many life insurance policies let you update your cover as you hit different life stages. Got married? Bought a house? Had a baby? You can easily adjust your cover, often without a detailed application or medical tests.
Curious about what fellow Aussies are claiming? Check out the stats from TAL Claims Statistics.
because little ones need you
Starting a family brings joy and the realisation that your kids will need your support for years to come. Income protection and trauma/critical illness insurance can help if you can’t work due to illness or injury, while life and TPD (Total & Permanent Disability) insurance provide long-term security for your family's future.
Head over this article to know the 4 main types of insurance that you need to know about.
because savings aren’t always enough
Nearly half of all Aussies say they couldn’t survive more than a month on their savings – and it's even tougher for younger folks. Income protection, critical illness, and life insurance can be your financial safety net when the unexpected happens. Remember, waiting periods apply to income protection, and qualifying periods may apply to critical illness cover.
Source: Savings account statistics 2024
If you're thinking about getting life insurance, chat with your financial adviser. They can help you find a policy that fits your current needs and can be tweaked as your financial goals evolve through different stages of your life.