As a young, fit, and healthy millennial, Life Insurance might well be the last thing on your mind, something you can worry about when you get ‘older’. But Life Insurance is just as relevant for you now as it is for any other Australian.
Why would I need Life Insurance?
Having Life Insurance is about planning for the ‘unexpected’ if you die or are unable to work through illness or injury and reducing the financial strain on you or your loved ones during an already difficult time.
New research reveals that 63% of millennials (aged 18-39) could only maintain their current lifestyle for a maximum of six months if they suffered illness or injury preventing them from working.
You should be looking at your income, debts, assets, and living expenses, and imagining what your financial situation may look like if you suddenly couldn’t work due to illness, injury or disablement. Could you sustain your current lifestyle? Would your loved ones be supported?
Getting your Life Insurance sorted out while you’re young and healthy can have its benefits.
Lock in cheaper premiums
- Age is a major factor that determines how much you pay for Life Insurance.
- Locking in premiums at a young age could prove financially beneficial as you age. If you wait, it may be more difficult and expensive to get coverage.
- You may not have to worry about finding money for expensive premiums later in life.
More comprehensive coverage
- In general, young adults enjoy better health which equates to cover with little to no exclusions.
- As health issues increase, insurers may decrease the range of illness/injury that you are covered for at time of application.
- If your health takes a serious hit, you may be deemed “uninsurable” when you finally do apply for coverage. At that point, your Life Insurance cover is limited and your policy options may be costly.
Protection in place for your future self & loved ones
- You may not have dependents now, but that could change in a few years.
- Investing now means you’ll have protection in place when your children, spouse or aging parents rely on your income.
To learn more about Life Insurance and if its right for you, contact a Financial Adviser to discuss a plan that meets your needs now and in years to come.