It's true that young, healthy adults are at very low risk of death. Sure, accidents can happen or you might end up being among the unlucky few that develops a rare disease at a young age. Generally speaking though, you're probably going to enjoy a long life.
It is for this reason that few adults consider purchasing a life insurance policy when they're young and single. Even those who are interested in asset protection and retirement planning might not see the need for life insurance.
This is almost as common a mistake as waiting to create a last will and testament and family trusts. However, there are major benefits to getting life insurance when you're still in your twenties.
Here are a few to consider:
While you’re young and healthy and therefore a low risk, rates should be fairly low. The lower your risk, the less you pay for an insurance policy. As you get older rates will increase as this reflects the probability that over time your risk of serious illness or death increases. Pre-existing conditions can also push up your premiums. A pre-existing condition is medical or physical condition that you know about when you apply for cover. When you’re younger you are typically less likely to have any pre-existing conditions.
Plan for the Unexpected
Life Insurance is about planning for the unexpected and making sure that your loved ones (eg your parents if you’re young and single) aren't left holding the bag for ongoing medical costs, funeral expenses, and so on. You're not planning to die anytime soon. However, the unexpected could happen (a car crash or accidental poisoning for example) and ideally you won’t leave your family under financial pressure.
Understand Other Benefits
You can add additional benefits to your life insurance policy. Popular add-ons are Trauma and/or Disability Insurance. Trauma Insurance means you get a lump sum payment if you suffer from a illness specified in our insurance cover, such as cancer, chronic kidney disease, blindness etc. Disability Cover provides a lump sum payment to make life easier if you become totally and permanently disabled.
Pinnacle Life makes sorting out your Life Insurance easy. We’ve provided a calculator to help you think about what you might need, along with some other tools and information on our website. You can apply online, and in less than ten minutes you could have this sorted out – from as little as $16 per month (that’s about $4 per week). If you want more information about making a will or setting up a family trust, TrustUs can help you completely online, ready for signing in minutes.