At this stage of life, you might not have any plans to get married and start a family, but this might change in the future. You’re also probably contributing to your household now that you have an income. Most families would struggle to keep things afloat if a family member developed a serious illness or is no longer able to sustain a steady income. This is why it is essential to ensure you have the right level of financial protection and insurance in place.
Why might you need protection?
Common reasons for setting up financial protection include:
- Maintaining your lifestyle and still meeting your payments if you become unable to work due to an accident or illness.
- Continue to provide for your family.
- Reducing stress during difficult times.
- Unexpected tragedies such as illness, disability and even death can leave you and your family facing emotional stress. You can focus on recovery and rebuilding your lives if you have insurance in place.
- Having an insurance plan in place that can help your family out if anything happens to you also gives you peace of mind.
- Securing the financial future for your children and protecting their standard of living.
Get the right insurance policy
Applying for an insurance policy can be a daunting task especially with the wide array of insurance products available in the market. This is why it’s important for you to revise your personal circumstance to make sure you get one that’s right for you.
- Life insurance will offer financial support to your dependents if you die unexpectedly.
- Income protection insurance can provide you with support if you find yourself unable to work.
- Critical illness cover will support you if you are diagnosed with a serious illness.
Do your research
It’s easy to just opt for the cheapest plan available, but you need to know what each policy will cover you for so that you choose one that best suits your needs. Meeting with a financial planner can help you understand your finances and help curate a plan that best suits your current situation.
Ongoing reviews
As your life circumstances change, the types of financial protection and insurance policies will also need to be reviewed to ensure that they are still suitable. These changes can range from major lifestyle changes such as starting a family to smaller changes such as starting a small business or taking out a loan to start up a business. You should speak to a financial planner to review your protection and coverage whenever you are going through a change in your life.
It’s tempting to think that you’ll never need insurance, but tragedies can happen to everyone. Most young adults avoid getting insurance due to the cost, but protection insurance is generally cheaper than most people assume and at least some coverage is better than having none at all. Life insurance policies can provide you with coverage from just a few dollars a month. Surely peace of mind and financial security for you and your family outweighs the cost of an insurance policy.
