Benefits of getting life insurance early
If you’re are a working and have people relying on your financially, life insurance is essential – regardless of your age.
Most young professionals make the mistake of assuming that life insurance is only necessary once they’ve had their first child or get married. They often overlook the fact that there might be other family members or dependents who are relying on them directly or indirectly.
We spoke to Lee Bromfield, CEO of FNB Life, to find out about the benefits of getting life insurance at a young age.
– In the unfortunate event of death, a life insurance policy could help realise the aspirations that you would no longer be able to fulfill – building a family home, creating family wealth, funding university for siblings, etc.
– A life insurance policy could also assist in reducing the tax costs associated with winding up a deceased’s estate and ensuring that beneficiaries get the maximum of their inheritance.
– Depending on your income and risk level, banks might require you to take out a life policy to be used as surety against the loan when you get a home loan. The policy will ensure that your dependents don’t have to worry about lenders coming after the assets you’d acquired.
– Life insurance is also more affordable when you’re younger, compared to when you are older. This means that getting life cover younger will not only protect your dependents, it will also mean that you get a better premium rate.
Thinking about the unfortunate event of death is not a pleasant thought, however, delaying taking out a life insurance policy could be compromising for your loved ones’ financial well-being.
For more information visit fnb.co.za.