For those that are young and healthy insurance to cover themselves are far from their minds. They may feel it, but they aren’t invincible and things can go wrong and leave their family worse off. The following are few reasons why thinking about insurance while young is a good idea.
- Even if you don’t have dependants any debts that you have now will still need to be paid. This burden will most likely fall on your family. Whether it is credit card debt, a car loan or other personal debt the bank will still want their money back. There are also other costs to take into account if you were to die such as funeral expenses or outstanding bills. You may also want to have a little extra cover so that your family can take some time off.
- What would happen if your ability to work temporarily or permanently disappeared? While you are young you still rely on your income to pay the bills and maybe even save for a house. Income protection insurance would allow you to retain most of your income while you are unable to work temporarily, and Total and Permanent Disability insurance would cover you if you were to suffer a serious illness or disability that went you were unable to return to work. If this was to happen there would also be significant ongoing costs that you wouldn’t be able to cover with a steady income. Personal care and modifications to make life easier don’t come cheap and would be essential to maintain some sort of quality of life.
- Getting insurance when you are younger can be easier, cheaper and can give peace of mind for the future. When you are young and healthy insurance companies will provide cover that will be cheaper because of your age and health and you are less likely to have pre-existing conditions that they may want to exclude are charge more for. As you get older you or family members may have health issues that an insurer will take into account when determining what they will cover and costs. If you plan on keeping the insurance for a long time it is also a good opportunity to lock in level premiums that will make the cost of the insurance much cheaper over the long run.
- While there is the sense of invincibility among young people the fact is that they are more likely to suffer a traumatic event such as car crash or injury from an active life. The medical attention required for these event can be expensive. You don’t want to be in hospital worrying about money, you want to be focused on you wellbeing and getting back to full health. Trauma insurance can cover these expenses while you are young and if you were to continue the cover as you got older you it will provide in the event if you were to have heart problems or cancer.
It is scary to think that you could die or suffer from a significant accident, but having adequate insurance cover can ease any concerns of not being able to cover medical and personal expenses and leaving a financial burden for your family. If you feel that insurance may be important for you then contact your financial adviser to find out what may be appropriate for you.
The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial planner.