Your twenties are marked by big life events, such as starting a first job or buying a first car or home.
Young professionals need life insurance early in their lives if they carry the financial responsibility in their households to safeguard the future of their loved ones. It might not be a top priority for young people who are just starting out, but this is actually the best time to think about taking out life cover.
“In South Africa, many young professionals financially care for parents approaching retirement age, younger siblings who need to be educated, or even grandparents with critical ailments. The likelihood of a younger person who is also the breadwinner having large savings to tide them over in any sudden financial emergency caused by their death, disability or illness is very low.”
As you age, the risk of death increases and so do the premiums for life insurance. If you buy life insurance in your twenties, you can lock in a lower premium rate, making it very affordable while you are young and healthy. Total credit card debt for the South African middle class increased by 7% this year, with average credit card loan balances up 8% to more than R31 000. Your family will have to pay any debt you leave behind if you do not have sufficient credit insurance, Markus says.The 2022 ASISA Life and Disability Insurance Gap Study shows that young people, under the age of 30, who earn an income might be at higher risk of experiencing a significant shortfall in life and disability insurance.
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