you only need life insurance when you are older

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By Prudence Thipe

When you are in your 20s and just starting out in life, you can be forgiven for thinking about starting your career, buying a car, and enjoying your independence rather than purchasing life insurance.

After all, life insurance is for seniors with families and financial obligations, right? No. First, death, disability or critical illness is not confined to older age groups alone; and on the other hand, the younger you are when it comes to purchasing life insurance, the more affordable it is.

When you are in your twenties, you should consider life insurance and financial protection and the other benefits it will offer as you go through the different stages of your life.

Life insurance should be the foundation of any financial plan, as its primary function is to pay off debt, whether current or future, such as settling a student loan, that becomes part of our life once we are over. we start to work. and start accumulating assets.

Unfortunately, the Covid-19 pandemic has also entered the equation by teaching us that life and our plans can change very quickly and what seems to be a certainty today, may no longer apply tomorrow. The pandemic respects neither age nor gender.

For the young consumer, the virus has drawn attention to the fact that instead of living and spending for today, perhaps it is time to think about the future and start planning for a financially secure future. safer.

The time has come because:

  • Still young and receiving an income, you have the possibility of acquiring an inheritance: the life cover protects your inheritance in the event of unfortunate death.
  • The earlier you start, the more affordable your monthly premiums can be and the easier it is to start building a financially secure future.

Life insurance is the key to leaving a legacy after your death and not leaving those behind to cover debts, whether current or future. For a family back home, life coverage can also be used to replace any financial assistance that a younger family member may have provided to their family.

A policy refund can cover essential expenses, such as mortgage bond payments, credit card accounts, car loans, student loans, and other debts. It can also ensure that unpaid medical bills and costs that a funeral policy does not cover are covered.

Since no two people are the same, getting the right life coverage for you should involve receiving advice from a financial advisor who can determine your financial obligations, assets, lifestyle goals and wishes. . A life insurance policy can then be adapted accordingly.

As your financial obligations increase and life gets more complicated, it helps to ask a trusted advisor to see you at least once a year, so that changes in your life and financial goals can be taken into account. account and that your inheritance can be preserved.

Prudence Thipe, Managing Director: Sales and Distribution of the Mass Pole and Old Mutual Foundation

PERSONAL FINANCES


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