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Life Insurance

Some Reasons Why You’ll Want to Have Life Insurance by the Age of 30

03 Dec 2021

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

Getting Life Insurance early could be an important step for you and your family.

Younger people rarely consider getting Life Insurance. That’s understandable from a certain point of view. After all, Life Insurance can be a complicated product whose benefits are not always immediately clear.

Younger people are more likely to not have pressing medical issues, so they don’t see the necessity. And those in their mid and even late 20’s probably aren’t married and don’t have children. Alternatively, they might have newly formed families and hold a starting position at work.

With all those factors combined, it is understandable why younger people often don’t think about the need for Life Insurance. No one likes to consider the worst-case scenario, especially when their journey has just begun.

However, planning ahead is often a wise choice. Here are some reasons why you’ll want to consider whether to buy Life Insurance early.

1. You’re Starting a Family (Or Planning To)

Starting a family is a monumental life event, and among the many changes on the horizon is a potentially more complex financial situation. Since plenty of families depend on the income of both partners, this means that the death of one partner can make financial matters complicated.

Without the same income, your loved ones could struggle with everyday expenses. The mortgage or rent has to get paid regularly after all. Not to mention, having children comes with financial costs and they all add to the usual expenses.

Life Insurance can help protect your family in the event of your death. It’s because your Life Insurance could help your beneficiaries cover unavoidable costs.

If you have kids or planning to have them, a policy could help towards ensuring their future if something were to happen to you.

2. You Can Get Better Rates

Younger people are less likely to have health issues, more likely to be fit, and have a lower death rate compared with those 20 or 30 years their senior.

What this means is that younger people will tend to have less expensive life insurance premiums.

In the case of NobleOak, a medical risk assessment is conducted only once (unless you apply for certain changes or increases to your cover), at the start of the policy’s life. If the underwriting assessment is conducted at, say, age 30 then the premium loading that will be applied based on the person’s health will generally speaking tend to be more favourable than the premium loading applied based on health when someone is applying for cover at age 55. Therefore, generally it’s likely that a 55-year-old who has had NobleOak life insurance for two decades will be paying lower premiums at age 55 than a person who first seeks cover at 55, all other things being equal. Keep in mind, though, that there are many factors determine an individual’s premium and these factors are all taken into account during an underwriting assessment.

3. You Want to Proactively Prepare for the Worst

It’s common for younger people to dedicate their attention to their life in the present, and thinking too far into the future may seem redundant as life changes very quickly. And that’s part of the joy of being in your 20s.

However, time doesn’t stand still.

Naturally, younger people won’t often delve on the realistic prospects of death and illness. But devoting your attention to these matters for a relatively short time could prove the right decision.

There’s a fine line between preparing for the worst and burdening yourself with worry. In some respects, buying Life Insurance falls right on that line. It could be seen as a way to take as much control as possible over the prospect of your death. At the same time, it means you’ll no longer spend time and energy worrying about it.

These matters are psychologically easier to act on when you’re in an earlier stage of life. As you get older, your life cover might seem more like a wise financial decision since it will be in the background as a potential safety net.

4. Troubling Times Could Be Less Stressful

Life can change in a day. Death, illness, and serious injury can come unexpectedly and bring all kinds of stress. And no one needs additional financial troubles on top of the emotional turmoil that comes with those situations.

A terminal illness is hard on those suffering from it, as well as their families. What can be even worse is being faced with hefty medical costs while the funds are suddenly cut down. These situations can be devastating for anyone.

This is also when the right Life Insurance product can be of immense help. Your cover can help ensure financial stability in such a situation. Potentially, it could help save your family from financial disaster.

Death in the family can leave feelings of grief and helplessness. When the funeral costs start accumulating with other daily costs, these feelings multiply. And with a suddenly lower income to cover those expenses, grief can give way to despair.

In this situation, Life Insurance could be of vital importance. Your policy could cover funeral expenses, in addition to helping to secure your family financially. While no payment can compensate for a personal loss, it may allow your loved ones to pay their respects without the financial burdens.

Finally, if you’re injured and unable to work for a certain period, the right Life Insurance products (in this case, income protection cover) can provide just the right backup. You can get funds to replace some of your lost income and help sustain you and your family until you get back on your feet.

Start Early and Potentially Save Money

There might never be a better time to start looking for an affordable Life Insurance policy than in your 20s. Going on, it could turn out to be one of the best decisions you’ve made.

If you’re already planning a family and buying a home, it’s clearly something worth considering.

Making time for some serious thinking about the future now could prove invaluable. And if you make the decision, you won’t have to keep these matters in your mind most of the time. Additional security for young families can bring have real benefits.

To insure or not to insure…

…that is a question that only you can answer, perhaps with the help of some professional advice. This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs. You should carefully consider the Product Disclosure Statement before making a decision on a life insurance product.

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