Do I need a life insurance policy?

Life is unpredictable, and no age group is exempt from unexpected events or illnesses. While it's common for young people to prioritise immediate needs over long-term financial planning, the truth is that having adequate protection in the form of life insurance, income protection cover, and serious illness cover is crucial.

You can never fully anticipate what may happen to you tomorrow and the impact this could have on your future. You need to protect yourself and your achievements thus far knowing that unforeseen events such as severe illness or disability can seriously jeopardise your ability to earn an income in the future.

Taking out life insurance when you are young means your premiums will be lower and helps you budget and plan more effectively in the long term while reducing the risk of becoming uninsurable should you take out life cover too late in life.
 

Finding a policy that suits your needs

The best life insurance for young adults is that which is optimised to your specific needs, such as the risks you’re exposed to and how severely these could impact your life, as well as how many dependants you have and how much they would need to sustain themselves.

One of the main reasons young people should consider life insurance coverage is to provide financial protection for their loved ones in the event of their passing.

Life insurance ensures that if the worst were to happen, your beneficiaries will receive a sum of money to replace lost income, cover outstanding debts, pay for funeral expenses, or provide for any dependents. It gives you peace of mind knowing that your loved ones will be supported financially during a difficult time.

Keep in mind, your financial adviser can help you optimise your life insurance policy to make sure it meets your requirements as you get older and your lifestyle and risk profile evolves.
 

Income replacement

Income protection cover is vital for young professionals who rely on their income to meet day-to-day living expenses. A sudden illness or injury that prevents you from working can significantly impact your financial stability.

Income protection cover provides a regular income stream if you are unable to work due to a covered event, ensuring that your bills, rent or mortgage, and other essential expenses are covered.

So, having this coverage allows you to focus on your recovery without worrying about financial burden

Start early

Another reason for young people to consider life insurance is that premiums tend to be lower when you are young and healthy. As you age, your health risks increase, and insurance companies adjust premiums accordingly.
By taking out life insurance coverage at a younger age, you can lock in lower premiums for the duration of the policy, saving you money over the long term.

Life insurance premiums generally do increase as per your age, with several exceptions. These could be anything from reducing participation in ‘riskier’ activities, such as skydiving, or moving to a less loaded policy.
It’s important to review your policy through your various life stages to ensure it is optimised to your evolving needs.