Why you should buy life cover when you are young
by
MoneyShop
Insurance, Life Insurance
If you’re young, healthy and don’t have any children, you could be forgiven for believing that life insurance is not necessary. But the truth is that you could save yourself a lot of money if you take out life cover before you reach the age of 30.
If you still have doubts about getting a life insurance policy early in your life, here’s a few reasons why you should have it:
- You’ll save money: This is because the policy will cost less when you are young and healthy. If you take out cover early in your life, insurers will deem youa low-risk client and offer you a lower premium.
- You can get some of your premiums back: 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. Our partner Vodacom, for instance, gives you 20% of your premium after 5 years if you don’t claim. This can be a nice lump sum to add to your bond repayment or to splash out on that holiday you’ve always wanted to go on.
- It could help your loved ones financially: Do you have a parent living with you? Or perhaps you’ve moved in together with a partner and you’ve bought a house together? Would they be able to cope without your financial support if you are no longer around? If the answer is ‘no’, then it’s best to get suitable life cover to ensure they are looked after financially.
- It will pay off your loans: If your family has signed surety for debts such, as your student loan, would they be able to repay it if you were to die? The right kind of life cover will ensure that any debts you have are paid off and that your family doesn’t have to worry about them.
- It will cover you if you become disabled: If you buy life cover you could also add on critical illness or accidental disability policies. Or they may come as part of the package you’ve applied for. These policies will kick in if you become disabled and are unable to work and provide for yourself.
Taking a life insurance policy early in your life can save you money in the long run and will ensure that any dependents you have that rely on your income will be covered. While it may not make sense to you initially, it’s definitely a sensible option if you have debt or other obligations that your dependents or family would struggle to pay if you are no longer around to pay for it.
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