Are you too young to get insurance?
You’re young, overall healthy, not married, and don’t have children depending on you. The future is a long stretch of possibilities and opportunities, and life’s big storms are not on your radar yet. Why take out insurance now?
It’s a question that insurance advisers hear often, and the answer is always the same: there’s no ‘right age’ to get personal insurance. Whether you need insurance or not depends on your needs today, and your goals for the future.
Before you put insurance in the ‘do later’ basket, now can be a good time to step back and look at the bigger picture. So, here are some good reasons to consider getting cover when you’re young.
You’re at your healthiest
Taking out health or life insurance now when you’re healthy may seem counterintuitive. You don’t need it – right? The reality is, that insurance is all about taking a proactive measure to cover future unknown medical conditions, accidents, and treatments. By taking out insurance now, and keeping the same cover over time, any health issues you might develop in the future will likely be covered.
On the other hand, if you take out insurance later in life, your pre-existing medical conditions will either be excluded (temporarily or permanently) from cover or lead to higher premiums.
The unexpected can happen, anytime
No one likes to think about the possibility of becoming ill, or worse. It’s just not something anyone wants to discuss.
But we also know that life is full of the unexpected. And unfortunately, statistics show that some serious medical conditions are on the rise among younger New Zealanders as well.
For example, according to Bowel Cancer NZ, bowel cancer is increasing in younger people, with one in nine diagnosed Kiwis being under 50. Type 1 diabetes, as Diabetes New Zealand warns, is mostly diagnosed in children and young adults. And the list continues.
The bottom line is, no one is bulletproof. And while insurance cannot prevent the unexpected from happening, it can minimise the financial impact that you and your family may face.
Think about your financial commitments
Even if you don’t have a mortgage to pay off or other people depending on you (e.g., a spouse or children), you may still have other financial commitments in place, like personal debt or a student loan.
What would happen if you suddenly lost your ability to earn an income, and were unable to meet those commitments? Would your family or partner have to step in, if you fell ill or worse?
Protecting your future goals (and the journey to get there)
Lastly, if you think about it, insurance isn’t just for the goals you’ve already achieved (like buying a home, or starting a family), but also for the journey it takes to get there.
For example, you may be saving money for a house deposit or other important goals, on your own or with a partner. If so, taking out cover can give you peace of mind and security, knowing that you’ve taken key steps to keep your plans on track.
Like to discuss your insurance needs?
At your age, securing cover for ‘future you’ is usually quite affordable. But what type of cover might you focus on?
Personal insurance comes in many different shapes and forms, suiting a variety of purposes. The key thing is to balance your current and future insurance needs – and an insurance adviser can help you navigate this often-complex decision with confidence.
Looking for the right adviser for you? Click here to find a financial adviser specialised in Personal Risk near you today.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.