If you’re young, single, and think you don’t need insurance, you may want to reconsider, especially if you’re working and paying off student debt.

According to the 2015-16 Ministry of Education report on Student Loans, student debt loan topped $15.3 billion.  Approximately two-thirds of students graduate with debt.  New loans totalled $1.6 billion among 731,754 current borrowers in the NZ.  It is an average of $20,983 per student.

That's a whole lot of debt, some of which you may carry.  NZ Student loans are written-off in the event of a borrower dying.  You’re only obliged to pay any outstanding loan repayments up to the date of death.

But what if you are unable to work due to a disability, such as a long-term illness or injury?

Truth is, people rarely consider getting personal insurance while they're in their twenties.  They mistakenly believe it is only something their parents buy – so their spouse or partner is not saddled with paying all the expenses.

And although you may not be married yet or, perhaps, like an increasing number of young Kiwis, marriage is not part of your plans for the foreseeable future, a disability or long-term illness would still have a financial impact on family and friends.

Plus, there are a few benefits you gain by purchasing insurance at a young age.

First, if you were to buy insurance today, it would likely ensure that you would be eligible for insurance in the future even if the state of your health changes.

Second, the older you get the more expensive insurance becomes.  However, the opposite is usually true if you buy now.  The cost of ‘Level Premium’ insurance essentially "freezes" at the rate when you first purchase it, as long as you continue to pay the premiums.

Look ahead.  Who knows what education funding will look like in the future?  It's hard to imagine now, but you just never know.

If you are single, don't overlook the need to get some insurance now.