LIFE INSURANCE
WHY LIFE INSURANCE COVER NEEDS TO CHANGE AS YOU GROW
BY REI SUPER
Sometimes we don’t think about our life insurance needs until it’s too late. Changing circumstances, rises or falls in income and whether or not the kids are still at home all affect the amount of coverage we need. JUST STARTING OUT : KICKING OFF A CAREER AND SAVING MONEY FOR YOUR LIFE GOALS
want is to pay for a policy for 10 or
at this stage of your life, it’s likely
15 years, then have to cancel it and
that the bare minimum you will aim
end up needing a benefit you don’t
to cover is the debt on your primary
So you’ve left school, completed a
have in place.
residence. The last thing you want
trade or a degree and started out in your progression. You might not be thinking about life insurance at this
Level premiums can change over time but the increase isn’t affected
is to leave your family without a roof over their heads.
by one’s age as stepped premiums
But you should consider other
are, but the upfront cost is higher and
outgoings – school fees, car
are often much more expensive than
payments and so on. And if you’re the
the stepped equivalent when you
primary wage earner and your partner
As you’re starting out, you might
first take out cover. Level premiums
is the primary carer, you may want
be thinking more about saving for a
may increase, but you pay a more
enough coverage so the children
home, getting some holiday savings
consistent amount year on year.
can be looked after until they’re old
stage of your life, but ensuring you have the right cover is something you definitely need to consider.
under your belt and enjoying life. But basic life insurance cover will see you on the way to preparing for financial wellness for the rest of your life. When you’re starting out with life insurance, you need to think about the amount of premiums you might want to pay. Stepped premiums can be more popular for young people, as they start out low and increase year on year. But you will need to think ahead and make sure you can cater for those rising premiums as you get older. The last thing you
Summary: A basic life insurance cover will see you on the way to
enough to fend for themselves.
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preparing for the rest of your life. However, this is a good time to think ahead and make sure you can cater for growing needs as you grow older.
THE PRIME YEARS : BUYING A HOUSE, MOVING IN WITH YOUR PARTNER OR HAVING CHILDREN You’ve got a home (and probably a mortgage), as well as kids and all the costs that come with them, including school and medical fees. When you consider your coverage
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CENTURY 21
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