You're under 30 years old, you don't have any children yet and you're in prime physical health. You might think that you don't need life insurance yet, but the truth is that there is no better time to invest in life cover than when you're young.
Taking a life insurance policy early in your life is a step towards responsible financial planning and a great investment in your future and your legacy, says Bryan McLachlan, Managing Director of Absa Instant Life. What's more, it's easier than ever to go online and buy affordable cover in 15 minutes, with no fuss and no medical checkups.
He offers five reasons why millennials should think about buying life cover:
1. A policy costs less when you're young and healthy
When you buy insurance at a young age, your insurer will see you as a low-risk client and offer you a lower premium. You'll benefit from that lower premium for the 20-year duration of the policy, meaning that you'll already be affordably covered by the time you buy a house or have children.
2. You can get something back if you don't claim
Many life insurers pay back a proportion of your premiums at the end of a specified period or at the end of the duration of the policy. Absa Instant Life, for example, pays back up to 20% of your premium every 10 years if you don't claim. This can be a nice windfall to contribute to your bond repayment or your children's education.
3. Leave a legacy for the people you love
Even if you don't have children, you may have someone in your life who depends on your income. Perhaps you have bought a house with a long-term partner or a spouse. If something happens to you, their financial future will be assured.
4. Take care of your debts
Depending on your circumstances, your family might have signed surety for debts such as your vehicle repayment, your bond or your student loan. A life policy can take care of these debts, leaving them with one less thing to worry about.
5. Many life policies also offer cover for disability or critical illness
One of the best reasons for young people to buy life cover is to provide for themselves if they are unable to work as a result of a critical illness or accidental disability. Work Disability Cover will work for you when you are unable to work and provide for yourself. It will ensure you and your dependants can maintain your lifestyle if you become disabled or ill.
