"If I'm young and relatively healthy, is it worth taking out a life insurance policy?"
- Question from Amy in Newcastle, NSW
Top answer provided by:
Bob Nixon
Hi Amy and thanks for posing the question.
Being young and healthy is a great point in time to start your life insurance program. Getting cover now should be hassle free and you will be able to hold the cover no matter what might happen to you in the future. I have been helping people with their insurance needs for nearly 50 years and in that time I have had clients face all sorts of unexpected events in their lives. Things can change without warning. I have had relatively young clients face the following:
-An accident causing death or injuries so bad that the client could not ever return to active paid employment.
-A medical event that, in its milder form, would make a client uninsurable in the future. In a severe form, again, unable to return to paid employment.
The need for insurance increases as other people become financially interdependent of you. For example, having a child or borrowing large amounts of money to buy a home.
In early 2022 a young client of mine, whom I had helped many years earlier to get life insurance, was killed in a freak event as he was crossing a street. He and his wife were expecting their first child who he never got to meet. His insurance will provide financially as though he was there - his daughter’s education will be funded, his wife able to buy a home without debt. Life insurance is for the interim risks of life along the way and for the ultimate inevitability of age-based, end of life situations.
I currently carry $1.2m of life insurance to protect my wife from having to clear geared investment debts and my business for the key man risk, should I die before these issues are cleared.
Regards,
Bob
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
Article by:
Comments0