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The benefits of buying life insurance while you are young

clock icon April 26, 2017
tag iconFinancial Planning Insurance & Income Protection Savings & Deposits

If you are one of the many who thinks buying life insurance at a young age is a waste of money, think again. While the concept might seem like something you shouldn’t have to worry about at this stage in your life, there are some benefits worth considering before brushing off the idea. The fact is, if you’re starting to build up your portfolio, life insurance is an integral part of a successful strategic financial plan.

Here’s why you should buy life insurance while you’re still young

Your premium will be lower

In a nutshell, the younger you are when you buy your life insurance, the less money you will pay. The insurance company will assess your current health status and determine the level of risk associated with insuring you. Low risk means a lower premium. On the other hand, if you become sick before you sign up for a life insurance policy, your premium will be much higher than if you had purchased the policy in your 20s.

Providing support for your family

If you have loved ones or children who rely on you, then you need insurance. Taking out a life insurance policy is very important to ensure they’re taken care of if something happens to you. If the cost of the premium is too expensive, look into buying one through your super fund. A lot of the time they can purchase policies cheaper than you.

To cover your debts

An accident or illness resulting in death doesn’t mean your debt will disappear. Unfortunately, the reality in Australia is that your partner, children or family may become responsible for the balance, depending on the circumstances and the financial institution. When purchasing life insurance, make sure your policy covers enough to pay off all of your debts and provide another income for your family, at least until your children are old enough to become financially independent.

 

Speak to your Financial Planner about achieving better results from your superannuation fund or attend a Wealth Creation Course to learn more. Get 50% off with discount code: SW50BLG 

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