Why should 20-year-olds consider Insurance?

Your 20s are a decade of ‘rinse, wash and repeat’ transformation. A new job, your own car, a roof over your head, increasing everyday expenses, and maybe a young family to take care of – you may feel that your life is going from zero to 60 in the blink of an eye.

With all these changes happening at once, now might be a good time to ask yourself, “Do I need Insurance?” Here are some important things to consider.

You are worth protecting

If you own a car, you may be familiar with Car Insurance and House & Contents Insurance. But while protecting your home and vehicle obviously makes sense, there’s another important asset you should keep front and centre – and that’s yourself.

Regardless of your age, everyone’s situation is different. Having said that, let’s take a good look at some of the Insurance types relevant to your stage of life.

—Health Insurance

Value-for-money is a key element here, because the younger and healthier you are, the lower your Health Insurance premiums will be. Plus, if you take out Health Insurance in your 20s, you’d be less likely to have developed pre-existing medical conditions that might affect your insurability down the line.

—Income Protection and Trauma Insurance

Are you relying on your income to live and meet your financial commitments? Do you have people depending on you financially? You may want to consider Income Protection or Trauma Insurance. Both are designed to protect you financially if you’re sick or severely injured, but they also provide different types of cover: we can walk you through their features and help you assess which is right for you.

—Life Insurance

Thinking about dying may be uncomfortable, but a little preparation goes a long way towards providing peace of mind for yourself and the people you love.

Life Insurance can be a good idea, even at a young age, if:

  • You have debt – Do you have credit card debts, personal loans or a mortgage? Life Insurance will help you and your loved ones (parents or partner) cover outstanding costs should the unexpected happen.
  • Have people depending on you financially – Are you married or in a partnership? Do you have any young children? How would they cope with you no longer being around? Not getting to share the life you planned together is unthinkable, but ensuring that you’re prepared for the ‘worst case scenarios’ can give you the peace of mind you deserve.
  • You are young and healthy – Even if you don’t have financial dependants, the best time to get coverage could still be now. Just like Health Insurance, Insurance can be a lot cheaper when you’re young and healthy. What’s more, if you choose level-premium Insurance now, you can lock in those low rates for life: you’ll pay a little more today but your premiums won’t increase with age.

 

Why having an Insurance Adviser makes sense

We’re fans of young Kiwis being proactive about their financial life, and welcome you to take a look at what’s available. It’s good to research online, but remember, securing Insurance online can come with pitfalls. For example, it might be easy to get lost in the details and forget to disclose important information.

As your Insurance Adviser, we can help you secure and maintain the right level of the right cover. Plus, you can count on us to be in your corner at claim time, to make sure that you receive your payout as quickly as possible.

An Adviser Disclosure Statement is available free and upon request.