When is the right time in your life to start thinking about insurance?
Insurance is generally the last thing on the minds of young people. Most of us think, I won’t need insurance until I’m older, or if something is wrong with me. I’ll deal with it later.
The truth about being young and building wealth
The reality is, when you are young, and just starting out, is when you need insurance the most. I’m talking early twenties. Sound crazy? Well it’s not.
Put it this way, if you’re 55, have built a fair amount of wealth, you own your own home and your super fund is looking good, do you really need insurance?
Probably not, or at least not as much because you have almost enough money to be self-sufficient and not need to work anyway.
On the flipside, at the ripe old age of 20, you have your whole life ahead of you, but literally no wealth to your name (or likely very little), as in nothing to possibly support yourself with if something went horribly wrong and you were unable to work.
And don’t even give me the line about your parents looking after you. Seriously, who wants to be 35 years old and living with your parents, ruining their retirement, while they spend all their time and money looking after you.
Please? I think we’re all bred a little more independent than that these days.
When you’re young you are at the most risk. This is when you need personal insurance the most. Especially Income Protection and Trauma Insurance.
As soon as you have someone who is financially dependent on you (a spouse or child), Life Insurance is 100% required.
It happens to everyone…
We all think it won’t happen to us, but it does. You only need to pick up the days newspaper to see that horrible things happens to good people every day of the week.
So take action today, and ensure you have all the personal insurances you need.
My 8 week Money Makeover will show you exactly how to calculate how much insurance you need, and talk you through getting this in place.
The great news is you can often pay some, or all of your insurance premiums through superannuation.
Although this means you’re reducing your super savings, if this is the only way you can afford it, it’s definitely better than going without.