Petrie Marx, 8 August 2018
But truth be told: Taking out life cover while you’re still young may just turn out to be one of the wisest moves you’ll ever make.
As you pay off a student loan, buy a car and move into your own apartment, you may well feel too financially squeezed to accommodate life insurance in your budget. But you can count on the fact that your older self will thank you decades from now….
Most people acknowledge that millennials are the ‘later’ generation. They’re buying homes ‘later’, having children ‘later’ and getting married much ‘later’ in their lives (compared to other generations). They generally also postpone buying insurance.
One of the common misconception amongst millennials and others is that life cover is pricey – and this may well play a role in decisions to postpone taking out cover. In reality, the cover you need is likely to cost less than you think.
Apart from the fact that life cover will be much more expensive when you try to purchase it later in your life when you are a greater health risk to insurers, you should also consider the fact that you may well benefit from life cover while you’re young – because youth offers no guarantee against severe illnesses.
Consider this: In 2017, 6% of severe illness claims received by Sanlam came from people under the age of 35. While your medical aid may pay for the costs of medical treatment and hospitalisation, there are often shortfalls and hidden costs that can be financially crippling. Imagine having to contribute significant amounts to medical treatment and hospitalisation just when you’re finding your feet in the professional world.
Some of the key benefits of getting life cover when you’re young, are:
The bottom line is this: You’re never too young to take out life cover. In fact, it can be a saving grace.