It is easy to feel secure when you are young. The prospect of end-of-life issues and concerns seem a long way off. However, your financial advisor would likely want to encourage you to take out insurances much earlier in life.
Advisors advise against going unprotected
Three-quarters of advisors surveyed by Royal London are warning young people that being young is not an excuse for avoiding life insurance. This survey consisted of 205 independent advisors, and 74% prompted young people to act sooner.
Income support is an area that is also largely ignored by younger consumers. 87% of these advisors surveyed claimed that people are not insured should they become unable to work due to ill health or a debilitating injury. Income protection would pay out if you were unable to work and can come in long or short-term policies. Such policies would pay out until an individual is 70, should they be proven unfit for work. This could prevent undue hardship at a time when life is likely to be challenging.
Barriers to protection
The research by Royal London suggests that the main obstacle is a lack of awareness. Many people cite affordability too, which is understandable when just starting out in life and everything feels costly.
An attempt to raise awareness of the importance of income insurance and life insurance is essential. Also important is helping young people see why they should make an effort to budget for income insurance, in particular.
The content in this article was correct on 22nd April 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on insurance. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.