Boost your financial knowledge this Youth Month
June is Youth Month in South Africa. As we commemorate the role young people played and continue to play in developing South African society, we must recognise our responsibility to help them take control of their financial situation. We all know that the earlier you start your savings and investment journey, the more wealth you can build over the long-term.
Your age, health, income and occupation are only some of the personal factors that influence your financial stability. External factors such as the economy, the strength of the rand and investment tax legislation can add another layer of complexity to your financial planning.
All this can be overwhelming, which is probably why so many young and even older South Africans ignore their finances for years before doing something about them.
3 REASONS WHY YOU SHOULD APPLY FOR INSURSANCE IN YOUR TWENTIES.
- Paying a lower premiumSome people believe that life insurance is simply too expensive to be purchased in their younger years. This is actually the complete opposite of the truth. If you buy life insurance when you’re young and healthy, you’ll typically enjoy lower premiums than when you buy life insurance at a more advanced age. Some companies might charge a man in his forties almost twice as much as a similarly healthy man in his twenties.
- The better the health, the better the cover.
If you contract a chronic health condition when you’re older (before you sign up), your monthly premiums will be significantly higher, and you’ll end up paying much more for life insurance than if you had locked into a lower rate when you were younger and healthier.
- Supporting others
Many people in their twenties support others, including aging parents. If you have loved ones who financially rely on you, then it’s extremely important for you to provide a financial safety net for them.
Article adapted from: Boost your financial knowledge this Youth Month – Liberty; Why young people need life insurance? – Mack Dudayev; Top 5 Reasons to Buy Life Insurance in Your 20s – eHealth.