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What is the best life insurance for young adults?

1 April 2022
5 minute read
Young woman in the sun

Did you know that you can take out life insurance from the day you turn 18? But do you need life insurance when you are young and how do you choose the best life insurance? If you have children or support family members, life insurance from a reputable insurer can give them the financial protection they need when you are no longer around. Your family will be able to pay their expenses and can start building their generational wealth - thanks to your life insurance policy!

Is life insurance necessary for young adults?

Yes, young adults need life insurance! Here are the reasons why.

Save on potentially high future premiums

You are likely to have a policy accepted at standard rates with no exclusions when you are young because you enjoy good health. Which means you will pay the lowest premium possible for your cover. But if you wait, you could pay a much higher premium because your health may not be as good. Your blood pressure may skyrocket, or you may suffer a serious illness such as cancer. Did you know that testicular cancer is the most common cancer among men aged 15 to 39, and cervical cancer is the most common cancer among women in the same age group? And, if you wait and take out a policy when have an existing condition such as diabetes, that condition may be excluded, which means you won’t have cover for death due to diabetes! If you want comprehensive cover and the best premium for your life insurance policy, take it out when you are young.

Sadly, young people die

13% of those who pass away in South Africa are aged between 20 and 34. Think 13% isn’t high? Compare it to 17% for people who pass away in their 60s, which is when most people die in South Africa! Be prepared – it can and does happen that young people pass away.

Top tip: You should also think about disability insurance when you are young because so many young people are disabled in accidents such as car crashes. Disability cover will ensure you have financial protection should this happen.

Your family

Your family, especially if you have young children or support your siblings or other family members, would miss you and the support you give them if you were no longer around. A life insurance policy cannot replace your love and companionship, but it can make sure your family has funds to pay school fees and living expenses. It can also pay off all or some of the debt on your home or car. 

Your life insurance policy pay-out will help your family build their generational wealth by funding a good education, giving them a family home and allowing them to invest and save for their future.

What is the best life insurance policy for young adults?

Well, your policy needs to offer you the right amount of cover for your needs and be from a reputable business that is a registered financial services provider (FSP). You might have the policy for many years, so you need your insurer to be in business for the long term. 1Life Insurance has been a registered insurer since 2006 and in 2021 maintained its position as South Africa’s leading direct life insurer, with the largest market share, for the 10th consecutive year in the annual Swiss Re Individual Risk Market New Business Volume survey.

You also need a company that embraces innovation and technology and makes it easy for you to manage your policy. And you should be able to change your cover as your needs change, with minimum admin and medicals.

You can take out a life insurance policy from 1Life in a few minutes and manage your policy online or using our WhatsApp service centre. And did you know that 1Life life insurance policies have a Guaranteed Assurability benefit that allows you to increase your cover without additional underwriting if your life circumstances change, such as having a baby?

Importantly, 1Life settles valid claims in as short a time as possible and can settle qualifying funeral claims in as little as 5 minutes! 

Make life insurance part of your budget and part of your life

Ever noticed how you worried about doing something for the first time, but the second and third was much easier, and then it just became habit? That’s what happens when you make space for life insurance in your budget! You have to make an effort in the first few months, but after a few months your insurance premium becomes part of your regular monthly expenses! Taking out life insurance when you are a young adult means you get into the habit of paying for essential financial products that can build and protect your wealth early on in life.

When you first take out insurance, you will need to make sure funds are available for your life insurance premium every month. This may involve a few less nights out or trips to the spa or salon or cutting back on some non-essential items. But your life insurance premium doesn’t have to break the bank. Start by taking small steps and take a small amount of cover to start off with. You’ll keep your premiums affordable and can increase your cover over the years as your needs change and your income increases. And that small step is the start of your generational wealth plan.

Final thoughts

As a young adult starting out in life, you have many dreams and ambitions – and many years of earning to make those dreams and ambitions come true. You need to protect your assets and earning potential and build generational wealth. A good place to start is with a life insurance policy tailored to your needs as a young adult.

Three things you need to know:

  1. Life insurance is a great way to protect your assets, make sure your debts are paid if you pass, and can help your family financially if you are no longer around.
  2. Life insurance is affordable for young adults! You will have to find funds in your budget for life insurance, but premiums are likely to be lower if you take out insurance when you are young and healthy.
  3. The best insurance policy for young adults is one that is easy to manage and is from a reputable company that pays valid claims.

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