Benefits of getting life insurance in your 20s
Life cover might not be first on a 20-something’s list of priorities, but that doesn’t mean it isn’t important to consider when you’re young. Besides the important reasons to get life cover, there are also distinct benefits to getting insured in your 20s, from fewer exclusions and fewer added risk charges to lower premiums in the long run.
Here are 3 reasons why you should get life insurance while you’re still young:
1. Good health means lower insurance costs
Your life insurance premium depends on the type of policy, the amount paid out, your overall health, and any pre-existing conditions. The older you get, the more expensive life insurance gets. Since you’re statistically healthier in your 20s, you’re effectively ‘less risky’ to insure, which could mean cheaper life insurance premiums.
Also, by buying life insurance early in life, your insurance cover could stay intact even if your health changes as you get older. If you get life insurance later in life, you might not be covered for certain existing conditions, or it will be more expensive as a result of having medical conditions.
2. You can get death and living benefits
Anyone can get sick, injured, or disabled at any age and at any time. While young people have a lower risk of lifestyle-related diseases (e.g., diabetes and heart disease), they aren’t immune to accidents or severe illness with permanent consequences.
Life insurance provides a financial safety net for you and your family should the unfortunate insured event happen.
Some life insurance policies also offer other features and benefits, like no claims bonuses or disability cover, which allows you to benefit from your policy while you are still alive.
3. Protect your loved ones now and in the future
From student loans to credit card debts, financing a car, or perhaps even looking at your first apartment, if you had a co-signer and you passed away, your life insurance would help protect those left behind from the burden of paying off those debts.
Some life insurance policies may also pay your nominated beneficiaries a lump sum payout so they could use the benefits from the policy to take care of financial pressures when you are not around.
Furthermore, having life insurance in place before you have dependents means it will be easier to manage the coverage amount in your budget because you’ll already be used to that amount. It may also be more difficult and expensive to get it later.
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3 Ways life insurance benefits you at any stage
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It’s never too early to prepare for the future. Getting life cover is an easy process and if you start today, you can benefit from getting insured at a young age.
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Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.
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