Insured or invincible? Why you need life insurance in your 20s….
When you’re in your twenties you feel like you are invincible! You’ve got a good 60+ years of good times ahead of you. Nothing’s going to happen to you anytime soon, so why worry about getting life insurance? Here’s a few things to consider:
Pay a lower premium – If you take out a life insurance policy when you’re young, fit and healthy you have the ability to lock in the price (a level premium). By not getting life insurance when you are young and healthy, you run the risk of paying a higher premium. Some health issues will cause a loading in the price, a specific health exclusion, or worst case the insurer will decline the policy. A level premium can add up to a significant saving long term.
Pay off debs – You may have significant personal debt, or even a home loan that you have co-signed with a family member. By not taking out a Life insurance policy to at least cover the amount of your debts, you could be putting a family member into hardship.
Peace of mind – Making sure you’re covered now, gives you that assurance that if something were to happen now or down the track you have the protection in place. You might not have a mortgage right now, or be married with kids, but you never know what health issues you may have in the future that will cause you to be declined for life insurance.
Setting up life insurance in your twenties could be the best investment you ever make.