In your 20s and 30s, exploring the world, building a career, and buying a little slice of Australian real estate can be exciting and consuming pursuits. For many, protecting your financial future can be low on the priority list. So, do you need life insurance when you are young?
Be prepared for what the future holds
You’re young, fit and healthy. There’s a bucket list of travel destinations that you probably want to visit. Perhaps, you’re eyeing your next promotion at your job to climb up the career ladder. Maybe, you’re thinking of settling down and starting a family. Whatever’s on your ‘to do’ list, it most likely doesn’t include Life Insurance.
However, life can throw a curveball when least expected For example, did you know skin cancer causes more deaths than transport accidents every year in Australia? Or that bowel cancer is the fifth leading cause of death overall for Australians aged 25-44? It doesn’t just affect older people. Since starting RP Wealth Management, we have made 6 life insurance claims with a 100% success rate and of those 6 claims- 5 clients were under the age of 45 and 2 were under 35, all cancer related dignosises. Injuries are the leading cause of death for people aged under 44. Just imagine, a sporting accident could force you to put your life plans on hold, take time off work and potentially lose income or sell assets. Having life insurance in place can give you peace of mind with a lump sum payment to secure your financial future by covering your income, debt, living expenses, medical expenses or cost of rehabilitation.
Can I afford Life Insurance?
Generally speaking, premiums are usually more cost effective the younger you are when you take out your policy. Many insurers even allow you choose a premium that will remain based on the age you were when the cover started, right through until you retire(considering other factors). Being younger also means you have fewer risk factors, and this can translate into lower premiums for you to pay. Some insurers may also offer discounts on your policy for maintaining a healthy lifestyle, so it’s important to get financial advice to help find a policy that offers the best value. You can fund your insurance with superannuation benefits to reduce the impact on your cashflow or structure it in different ways to maximise your benefits.
Flexibility to change your cover with age
You might feel that you’re locked in your cover and the choices you picked when you first selected your policy. This isn’t true either. Most insurers understand that your needs change as you grow older. For example, your family might grow when you decide to have kids and that may add more people who are financially dependent on you.
Many life insurance policies also give you the option to update your cover as you go through different stages of life. What’s more, the process can often be quick and easy, and you may not even be required to undergo a detailed application or have any medical tests to update your cover, where you have reached a milestone like getting married, buying a house, or having a child.
To get an idea of just what is being claimed on by fellow Australians and look further into claim statistics, you can few the following link through TAL, one of Australia’s biggest Life insurance companies:
If you would like to discuss your Life Insurance options and what cover is available to you, please reach out to our office located in Oran Park or Norwest Business Park(Baulkham Hills) and we would be happy to review your options.
The information in this website and the links has been prepared for general information purposes only by our office and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, personal or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances.
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