Start Thinking Ahead

Family enjoying a walk

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You are young and you have a lot going on in your life: work, play, travel or study- insurance is probably not on your mind. Your priorities are probably your lifestyle, health and your future – well the fact is, the right type of insurance cover can help you protect all of your priorities. Don’t let one of life’s unexpected surprises throw your future plans off course. Here are a few of the advantages of getting life insurance early on in your life.

It helps build cash value 

Buying life insurance is not only about a death benefit or protecting loved ones. The fact is, it’s an integral part of a successful and balanced strategic financial plan. Buying permanent life insurance at an early age can help you accumulate cash value. Just the same way people save and invest money for retirement at an early age, this practice can be applied to life insurance. If you buy permanent life insurance early, this gives you a longer period of time to put money into the insurance plan and also allows you to draw interest on your money for a longer period of time. The bottom line is, the sooner you buy permanent life insurance, the sooner you can start building that cash value, which can be utilised for opportunities or emergencies. It’s always good to know that you can access the money and it will be there if you need it. It’s a safe way to protect yourself and your family and guarantee a return on your investment.

The costs are less 

Whether you buy permanent or term life insurance, it will usually cost you less while you’re young. The fact that you are young and healthy will not only keep the premiums low, but it will also enable you to buy a lot more insurance coverage than you may be able to a few years down the road when you actually do have dependents. This is due to a few different factors, for example most people are healthier when they’re younger and experience serious medical circumstances as they get older. As you grow older, you become more susceptible to serious medical conditions such as cancer, diabetes and other illnesses. When you decide to put a policy in place early in your life, you tend to be healthier and have few medical issues. The policy at this point will almost always cost less. By buying life insurance at a young age, it ensures that if your health starts to deteriorate in the future, that rates will still be based on his or her health at the time the policy was purchased.

Protect your young family when they need it most

While you’re considering all the other financial priorities that you have as a young adult, you might also want to give some time and attention to taking care of potential future life insurance needs. If you are in your 20s and have a wife and two young children who rely on your income for support—and you don’t have a lot of money set aside—you should probably have some type of life insurance coverage. In case something happens to you, your wife could be left as a single parent with two children, and a bleak future ahead. Life insurance can help replace the income of the bread winner.  It can help establish university funds for the children. Most importantly, it can help the mother look after her two children and still live comfortably. This is a very important reason to take out life insurance early on in your life. For instance, term insurance is a relatively straightforward and low-cost type of life insurance. For many young families, a term policy is often the way to go. For one thing, it’s more affordable and you can choose the term—10 or 20 years—depending on the age of your children and the length of time you want to provide them with financial help. However, there are instances where permanent insurance can make sense. For example, if you have dependents with special needs that will need financial assistance indefinitely, permanent insurance might be the best option.

AIA aims to help you find an investment approach that fits your financial goal and risk appetite by combining innovative products with expert advice. AIA understands that each of you have unique financial goals, therefore AIA has designed a line of investment linked plans that offer you smart solutions to satisfy your portfolio needs by delivering consistent performance. Investment linked plans offer you the opportunity to participate in investment opportunities while ensuring you have financial protection through life insurance. You can benefit from investment opportunities in developed and emerging markets, and in different ranges of risk/return profiles.

This article was published in the November 2016 Issue of Inspire Living Magazine. Download it here!


This advice on family living is made possible with support from

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