Life insurance can be extremely cheap to take out a policy when you’re young. In the eyes of an insurer, young people are statistically farther from dying so the insurance policy provider has less risk of paying your insurance payout in the near future. In the insurers eyes you will be paying a your policy charge for decades and it then gives the insurer a strong return on investment. Insurance companies offer the best life insurance deals to young people because of this low risk factor.
A majority of young people feel that they don’t need life insurance. We agree that your death is far far away from your twenties or thirties, however you have to remember the human body is fragile and accidents can happen.
There are a few reasons young people should seriously think about taking out a life insurance policy. Here’s the top five in our opinion:
- Young people are privileged to the best life insurance policies available. Low cost payments with high payouts in the event of your death.
- You want to have money set aside for your funeral so as not to put unexpected financial burden on loved ones. Funerals are expensive and can end up costing up to €10,000. Headstones, burials, funeral services, mourning cars and solicitors are actually very expensive.
- Your wife or partner is depending on your income, especially if you have mortgage together. An insurance policy payout may not sustain them for life however it will give them the boost they need to get over your death without worrying about financials.
- You are a young parent and your children are in education. Again a life insurance policy is a short term boost but certain policies could pay for the education for a number of years. It again gives your spouse time to recuperate and get their head around your death.
- Your parents are depending on your income. Most of the time parents are the ones that support their children but in hard times of recession this could be the total opposite. If your parents are elderly and unable to work you may need to think about how they would survive in the event of your death.
We obviously hope that a young person never has to use their policy but it does give your loved ones security in the event of your death.