A majority of young people feel that they don’t need life insurance. We agree that your death is far away from your twenties or thirties, however you have to remember the human body is fragile and accidents can happen.
It was George Bernard Shaw that once said that “Youth is wasted on the young” but taking out your life insurance whilst young can help you invest in your future and at a cheaper price!
Life Cover can be extremely cheap to take out a policy when you’re young. In the eyes of an insurer, young people are statistically farther from dying so the insurance policy provider has less risk of paying your insurance payout in the near future. In the insurers eyes you will be paying your policy for decades and it then gives the insurer a strong return on investment. Insurance companies offer the best life insurance deals to young people because of this low risk factor.
There are a few reasons young people should seriously think about taking out a life insurance policy. Some food for thought below:
- Young people are privileged to the best life insurance policies available. Low cost payments with high pay outs in the event of your death.
- You want to have money set aside for your funeral so as not to put unexpected financial burden on loved ones. Funerals are expensive and can end up costing up to €12,000. Headstones, burials, funeral services, mourning cars and solicitors are actually very expensive.
- You are a young parent and your children are in education. Again a life insurance policy is a short term boost but certain policies could pay for the education for a number of years. It again gives your spouse time to recuperate and get their head around your death.
- Your parents are depending on your income. Most of the time parents are the ones that support their children but in hard times of recession this could be the total opposite. If your parents are elderly and unable to work you may need to think about how they would survive in the event of your death.
- Some people find they have small debts from student/travel loans and other purchases to cover. Although not enough to warrant a life cover, these debts could fall onto other family member if something were to happen. Having a small amount of cover can leave your relatives in a more secure position if anything were to happen to you.
- The policy can be used in the future to secure your first mortgage. If the cover taken out is the same or more than the mortgage amount you could use this policy to satisfy your lender. You have your mortgage secured and a lower premium as you took the policy out when you were younger. Or if your mortgage is higher, it can be used to secure a part of the mortgage and you may only need a new policy for the balance.
- The fact that young adults can be lucky enough to be in good health means that on most policy applications this can lead to a quicker turnaround with little or no medical requirements. This means no need for doctor’s reports or medical exams which can at times take up your precious time.
We obviously hope that a young person never has to use their policy but it does give your loved ones security in the event of your death.