Life insurance is often seen as something older people should get. They're the ones who are closer to death, right?
Well, life insurance doesn't work like that. There are several reasons that life insurance is a good idea for everyone, including millennials.
Here we take a closer look at five solid reasons why you should get life insurance. Today.
You’re never too young to be prepared.
The cost of a policy is lower ⬇️
As a general rule of thumb, the younger you are, the less your life insurance premiums are going to cost. Let me lay it out for you. If you got a policy with us today, you could save thousands of dollars over your lifetime.
- Taking out a 40 year term, level pay-out for £500,000 at 30 years old, saves you £27,500 compared to buying the same insurance at 40 years old.
That’s £43/month compared to £99/month!
Because of this, you're likely to get a premium that is extremely affordable and manageable. If you get a flexible plan and you increase your financial responsibilities in the future, you can then add these to your life insurance and grow with your policy.
It's a great idea to start paying into a policy while you're young as we never know what tomorrow may bring. Life insurance can be a way of giving your family a financial lifeline should something tragic happen.
Paying off debt 🏦
Contrary to what many people believe, your debts don't always die with you. If all your debts are in your sole name, and you have no estate, then they won't have to be paid. However, there are other situations where they will need to be paid off.
For instance, if you have any type of joint debt, such as a co-signed agreement or guarantor loan, the other person is still going to be liable for the debt if you pass away. This could leave them with a huge financial burden if they are unable to pay it.
One of the most common reasons to get life insurance is a mortgage but these scenarios can also apply to the likes of student loans and unsecured loans. If you have a joint liability then life insurance can act as great protection.
When others depend on your income 💷
For example, most people think life insurance is not required if you're renting but that is far from the truth. The rental payments will still need to be paid even if your income decreases. There are indirect costs too. Perhaps an elderly relative depends on you or you are the main financial source for childcare.
Cost of a funeral ⚱️
The average cost of a funeral in the UK is £4,321.
Someone is going to have to pay for that, and in many situations, this means getting a loan.
Death can be a very stressful and testing time, however, with life insurance, your family doesn’t need to worry about the financial burden of including or excluding certain aspects in the funeral. It is a simple and practical way to ensure you have the celebration of life you and your family desire.
If you're high-risk 💥
Being high-risk in terms of life insurance can mean several different things. It could mean that you have an existing medical condition or perhaps you have a dangerous job. If it's the latter, then the insurance you get from your employer may not be good enough.
Having a high-risk job in construction or social services could have an impact on your policy. However, the earlier you start paying into your life insurance, the more cost-effective your premium could be and helpful in planning for the future.
If you're young and single with limited financial responsibilities, then this may be something you could wait to do. However, as you have now read, there are plenty of reasons why now is the right time to get life insurance. It’s never too early to be prepared.
If you're looking to get started, make sure you get a policy that is flexible and one you can trust. Always seek advice when taking out financial products.
Message us on our website to ask any questions, we’d love to chat about your options.