Life insurance for young professionals

Busting the myths

Life insurance will only cover me on death.

Most of us erroneously think that life insurance is only about death benefits. But in a world where you are eight times more likely to suffer from a temporary disability than die, it is critical to have living benefits like income, illness and disability cover, to get you through the financial impact of an illness.

I have a medical aid, so I’m covered.

Most people learn firsthand that medical aids and even supplementary gap cover may not cover all costs associated with getting a severe illness. The shortfalls are generally on unpaid time off work beyond mandatory sick leave, and latest or advanced treatments that aren’t part of prescribed minimum benefits.

I’m covered through the company I work for.

Most employers provide compulsory group cover, deducted from salaries. But this group life insurance cover is often insufficient and doesn’t necessarily include severe illness cover or lump sum disability cover.

I’m young, and young people don’t get sick.

The reality is we’re all one serious illness or accident away from financial ruin if we don’t have the right cover in place. Youth doesn’t grant you immunity from getting sick. A disease, a disorder or a bad diagnosis can strike any of us at any time. People end up going in huge amounts of debt, losing their saves and reducing their wealth to fund expensive medical treatments.

I have savings, so I don't need life insurance.

Life insurance cannot be separated from any good wealth building strategy.  Especially at a younger age when capital accumulation has only just begun, the benefits of planning for an uncertain future far outweigh the marginal costs of a monthly premium. Investments and insurance will always reinforce each other because getting sick costs money and can deplete years of savings.