Blog

16, Feb, 2018

'I'm young and I don't need life insurance


“I’m young and I don’t need life insurance”

This is exactly the attitude I had until I started in this industry. 

 My 4 years working in the risk insurance industry, I have been there at the time that matters, claim time. I have seen people with mental illness have access to the best help on offer and be re-trained into other professions whilst being paid, I have seen people use their lump sum payments to travel, pay off debts and not have to worry about their income while they are recovering from illness and injury.

As a young person myself I am working towards building up my assets but in order to do this my debts have grown and I am having to work harder than ever to ensure financial security. These big life plans are great, but what if I lost my ability to earn an income? At this stage of life, I would be unable to pay the mortgage, I would have to use any savings I had behind me as income and would be unable to maintain my lifestyle which if you know me you will know this involves lots of coffee and travel. What about ACC you say? Well this is all good and well if you suffer from an injury but people often forget this doesn’t cover you for any illness you may suffer. What if I told you that for the price of a coffee or a bought lunch a week you could insure that in the event you were to suffer from an illness or injury and were unable to work you would be paid income. Or perhaps you were to suffer from an illness and receive a lump sum payment which enabled you to pay off any debts, have a couple of years’ worth of income and continue to be able to achieve any other goals you may have.

 As young people we find it hard to imagine this ever happening but by the time we realise these things could happen to us, we have then developed health issues and are a lot older which are all reflected in the price of premiums as well as being unable to get cover for some health conditions. I believe we have a great opportunity to be ahead of the game! Most of us are pretty healthy which means we won’t have any issues excluded, the premiums are based on age which means we can lock them in now so they don’t increase and have peace of mind that if we do suffer from any illness or injury we can still achieve any goals we may have and no you don’t have to die to get this!

Here’s a scenario for you: Trauma cover for example pays out a lump sum in the event I was to suffer one of the listed illnesses such as meningitis or my doctor finds a malignant tumour. I may decide to insure my self for $200,000 and after suffering from one of these illnesses the lump sum of $200,000 is paid into my bank account. I can then use this money to pay off some of the mortgage, have some income while I focus on having treatment or recovering from the illness and then I am able to go on that overseas trip I had planned. This $200,000 of cover as a 24 year old is going to cost me $5.85 a week and as I don’t have any health issues, anything that does arise in the future will be covered. If I was to take this same $200,000 trauma cover out at age 44 the premium then becomes $20.28 per week and by that stage I’ve probably had some heath issues arise which then the insurance company see’s as “high risk” and wont cover me for.

As I said above, for the price of a cup of coffee or a bought lunch per week which for me is less that my car insurance, I can insure my biggest asset, my income! If I crash my car, I’m insured and would get paid or worst case not be insured and loose my $10,000 car and then have to work for the next couple of years to save for one again. But what if I lost my ability to earn income? I wouldn’t even be able to pay for the car insurance or the mortgage or go on my next trip I have planned and am saving towards so why would I not insure that?

If you are a young professional, buying a house or starting a family, I feel this is such an important thing to do as protection for your future. None of us have a crystal ball and life doesn’t always go to plan, but by making sure your goals and future plans are protected you can at least have peace of mind that if it doesn’t, you’ve got a plan B!

My advice and appointments are free and if you like coffee as much as I do, I would love to chat over a brew about the cool products available even if it is just to educate you and let you in on what I think is a great opportunity.

by Zoë Walls-Renwick 16/2/2018

 

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