Think you're too young for life insurance?

From keeping up with the latest TikTok trends to navigating rising housing prices, it’s safe to say that life insurance may not exactly rank amongst the top priorities of young Aussies. Is that because many believe that life insurance isn’t worth it if you’re young and healthy?

So, is life insurance something you can put off until later in life? Securing life insurance early may offer a range of benefits and provide a financial safety net in the event of the unexpected.

If you’re wondering, ‘is life insurance worth it?’, you’ve come to the right place. Discover some of the benefits of considering a life insurance policy and hear an expert’s two cents on the matter.

Should you consider securing life insurance early?

If you’re putting off life insurance due to age, you’re not alone. Reports reveal that the Australian public is up to 60-80% underinsured when it comes to life insurance.

With over 80% of Australians navigating at least one long-term health condition during their lifetime, having a financial safety net in place is a practical way you can support yourself and your loved ones, no matter what the future has in store.

1. It can help cover your outstanding debts

People tend to think of life insurance as financial protection for you or your loved ones in the event of you being diagnosed with a terminal illness, or your death. Life insurance payouts can be used however the recipient chooses and so could be used for paying off any debts you may have, such as the remaining balance on a mortgage.

If this is something you’d want your family to use your life insurance for, you may look into having an up-to-date Will which can give your executor the authority to use your payout to cover certain debts, or make sure you discuss the use of the money with any beneficiaries you select.

2. It can help with future planning

Taking out life insurance at a young age can also serve as a financial tool to support your family’s future living expenses. Whether you’re looking to start a family, or simply put kids through an education, taking out life insurance early may mean you secure protection for the unexpected without exclusions and limitations being applied due to any health issues you may have.

While it’s safe to say no one likes to think about passing away or being terminally ill, taking out life insurance early allows you to be proactive and potentially prepare for such situations, too. If the worst were to occur, knowing you’ve got your insurance sorted, meaning your loved ones can be taken care of, can bring real peace of mind.

3. You may have peace of mind

With financial protection in place, in the event of the unexpected, can provide a sense of financial security and lead to greater peace of mind. Taking out life insurance can be a proactive step in managing the uncertainties of life, because when it comes to our health, nothing is guaranteed.

4. Exclusions and premium loadings

Taking out life insurance at a young age may mean that you’re able to receive cover without exclusions or loadings. As you get older the risk to the insurer increases because, as you age, you are more likely to experience health issues. The likelihood therefore increases that your insurer may apply a loading or special exclusion to your policy due to your health, or you may even find that some insurers will decline to offer you cover.

5. Is there enough to get by?

When considering taking out life insurance, you can apply for your preferred benefit amount as outlined by the insurer, so that you or your family may get by in the event that you pass away or are diagnosed with a terminal illness.

Keep Reading: Discover the types of life insurance available to young families and the benefits of protecting your loved ones.

Insights on life insurance for the young and healthy

As Sam Perera, Director of Perera Crowther Financial Services, explains, “‘It won’t happen to me’ is the prevailing attitude amongst many Australians, let alone younger ones. But illness, injury, and death often strike when we least expect it, and considering the financial ramifications and planning for them is the answer.”

The main benefit of obtaining life insurance at a younger age is that we’re typically healthier. As Perera suggests, “This leads to less complications when it comes to passing the medical aspect of underwriting a life insurance policy. Health issues that arise as we age can result in insurers requesting a higher premium to cover the additional risk or, in the worst instance, insurance being declined.”

Final word: Is life insurance worth it?

If there’s one thing you can be certain about in life, it’s that nothing is guaranteed. Though youth might bring feelings of invincibility and superior health, inevitably, the aging process catches up to us.

Ultimately, looking into a life insurance policy that’s right for you may help your loved ones being supported with ongoing living expenses and even funeral costs if the worst were to happen to you.

By taking out life insurance, you may obtain peace of mind, knowing that your family might be taken care of financially should the worst happen. Compare a range of policies with Choosi today.