Life insurance is not a term synonymous with the younger generation and most young people rarely, if at all, think about taking out a policy.
When it comes to life insurance, the main reason people seek a plan is to look after the people they leave behind. This is a matter that affects the whole population, no matter whether you are young or old.
Here, we look at the main questions young people might ask before taking out life insurance.
Why should young people take out life insurance?
Life insurance can be beneficial for any young person with responsibilities.
Parents are one of the biggest groups of young people who look to take out a life insurance policy.
If you have children, you should look to the future and think about how they will survive financially if anything bad happens to you or your partner.
This is equally as important if you have older relatives who are financially dependent on your earnings. Life insurance can cover many financial responsibilities you have e.g. if you have a mortgage, debts or a business to consider and do not want your partner to worry about future payments.
What are the benefits for young people taking out life insurance?
Young people are often thought to be low-risk, therefore, the price of life insurance is much lower than for older people.
In a world where we are all looking to save a little more, life insurance can be thought of as an unnecessary expenditure.
However, for people in their 20s, it can be very inexpensive and often under £10 a month, dependent on if you meet certain criteria.
It could be highly beneficial for you to feel secure with a low-cost life insurance plan where you will barely notice the payments leaving your bank account.
Does life insurance cover critical illnesses?
Life insurance is a separate policy to critical illness cover, however, this is highly recommended in addition to life insurance.
The probability of you suffering from a serious illness is much higher than the chance of you passing away at a young age.
Critical illness cover can be paid out in a lump sum or through an income protection plan where you will be paid until you can return to employment.
Where do I find out more?
If you are interested in taking out a life insurance policy, you should contact a specialist advisor. They can help you look at your individual circumstances and compare policies that will specifically benefit you.
Perhaps you want to go for a plan where relatives would receive a lump sum or maybe you would prefer one with ongoing financial support? If you have a partner, you can also look at joint policies.
Young people can benefit from life insurance for a number of reasons, from inexpensive policies to the relief that their loved ones will be safe and secure if anything were to happen to them in the future.
We definitely recommend using our site to compare different cover types and talk to Bob’s advisers before deciding on the right plan for you.
Find out more and get a quote for life insurance below…