Start Young, Save Dearly—4 Persuasive Reasons to Get Life Cover in Your 20s
Do you think you’re way too young for life insurance? If you’re like most millennials, you’re busy paying off a student loan and a car, kick-starting a career and setting sky-high goals—and life insurance is probably the last thing on your radar. After all, you’re young, you’re healthy and you have years ahead of you—why would you need life insurance?
Well, life comes at you fast and suddenly you’re 30, living with your family in the suburbs. OK, maybe you’re not quite there yet, but the reality is life insurance should be an important part of your overall financial plan, and the sooner you get started, the greater benefits you’ll reap. So, let’s get straight to the top four reasons to get life cover when you’re young.
1. Income support
If you’re a 20-something, you’re more likely to be single and childless—but that doesn’t mean you’ll stay that way. You may get married, have children or you may have to take care of your parents, and if you’re their sole provider, what will they do if you die? Life insurance will provide financial support for them when you’re not able to.
Another thing to be concerned about is disability. Disability places an even bigger financial burden on a family than death, because not only does your income fall away, but living with a disability is expensive. Life insurance is an investment in your wellbeing, and the best time to do it is when you have all odds working in your favour—when you’re young, healthy and free.
2. Younger = Cheaper Monthly Premiums
The best time to apply sunscreen is before you get burnt—and life insurance is no different. Age is on your side in your 20s as the older you get, the more expensive it becomes. People in their twenties are far less likely to develop chronic conditions that may drive up premiums, which means you can lock in low premiums with no exclusions for decades—even if your health deteriorates in your 30s or 40s.
Simply put: if you wait to buy insurance at a later stage in your life, you will face higher premiums, or have exclusions, but if you buy life insurance at an early age, not only are your premiums low, but your premiums could grow into a sizable cash value as the years go by.
3. Your loved ones will not be liable for your debt
It’s hard to imagine being a twenty-something without debt these days, but that’s part of the reason life insurance can make sense—even if you’re single. From credit card debt, car loans to personal loans, South African millennials are some of the most credit-active consumers in the world. But that’s not all; excluding bank-funded student debt, in 2015, it was estimated that university debt alone ran over R700 million.
If your parents co-signed any of your debt (like student loans, car loans, etc.), they will be responsible for those debts if you die before paying them off. One of the greatest benefits of life insurance is that if you fall victim to a life-changing event, having adequate financial protection already in place will protect your family from having to repay your debt.
4. You’re most at risk
In your twenties, you’re statistically more at risk of being involved in an accident, which may cause death or disability. According to Stats SA, road users are at the highest risk in their 20s. Just over 42% of all deaths in the 20s year age group are from road accidents.
A bad accident can compromise one’s ability to receive an income, which has potentially detrimental consequences for a young person with some 40 years of earning potential ahead. Therefore, the first risk cover you should buy in your twenties is life cover, because not only are you at the highest risk of becoming disabled, but you will also have the most to lose in terms of earnings.
Think Ahead With Live Cover from Oakhurst Insurance
We all hope to live a long, full life, but what if you pass away before your time? Doesn’t it make sense to be prepared for the unexpected? At Oakhurst Insurance, we believe that investing in life insurance is one of the smartest moves any young person can make.
Not only will you lock in a great premium at your age, but you will pay the same rate for decades, or even for life. You’ll be covered by a death benefit well into your working years and perhaps after you’ve retired.
Don’t make the mistake of overlooking this investment. Be smart, start early and save dearly with a life insurance policy from Oakhurst Insurance.
Balancing Risk and Reward Means Protecting Your Most Important Assets
Originally a motor-focused insurance provider, today, Oakhurst Insurance Company has expanded into business insurance, household insurance, mobile insurance, bicycle insurance, drone insurance, pet insurance, and funeral, disability and life cover. As one of the top insurance companies in South Africa, striving to stay above our competitors, we offer new and innovative ways to give our clients the absolute best cover at the most competitive premium pricing.
Listening to, and actioning the needs of our clients, we do not believe in a one-size-fits-all policy and therefore offer several life cover solutions to suit each individual’s budget, needs, risks and lifestyle. From comprehensive and accidental death cover, accidental personal disability, and accidental income protection to funeral cover, our life insurance gives you the reassurance that your dependents will be looked after should you be unable to provide for them.
Life insurance is like having a parachute when you need it—and at Oakhurst Insurance, we recommend getting it as early as possible. You do not have to put large amounts into it, but commit to doing regularly and as a priority.
To find out more about our life cover and other products, call us on 0861 001 041 for an obligation-free quote. With great relationships, expertise in various industries, the ability to execute swiftly and the intellectual muscle to innovate, we are the smart choice as your insurance provider.