Advice matters
Why buy life insurance in your 30s?

If you’re in your 30s, you may be wondering if life insurance is right for your needs. So, here are some good reasons to consider taking out life cover now, according to our SHARE advisers.

You started (or are starting) a family

Typically, your 30s are a stage of life when you start having dependants. Maybe you recently tied the knot or have welcomed a child (or children) into your family. If so, you may want to protect your family’s financial future – and getting life cover can be a great way to do that.

Life insurance is designed to provide your loved ones with a lump-sum amount should you pass away or be diagnosed with a terminal illness. Of course, this is not a pleasant thought, but preparing a safety net for those ‘what ifs’ in life is crucial.

How much life insurance is enough for you will depend on your objectives. For example, if you have a house with a mortgage, you might want to have enough cover to pay off the mortgage in full. If you have a partner and/or children, you may also add something extra for them – to cover everyday expenses for a while, save for retirement, or pay for your child’s tertiary education.

You have a mortgage

If you’ve bought a home with a mortgage, be that on your own or with a spouse, protecting your ability to repay the home loan is key.

As we said, life insurance can be tailored to the size of your home loan, protecting the roof over your family’s head and ensuring that your loved ones are not left with a financial burden if you’re no longer around.

You earn more

Your income is your most important asset.

Even if you don’t have a mortgage, your family may still have other debt or financial commitments to meet – like rent costs and other everyday expenses. Plus, you may be saving for the future or a first-home purchase. Some people choose to take enough life insurance to replace five to 10 times their annual salaries. This way, the surviving spouse can rely on a sizeable buffer.

Having said that, life insurance isn’t just for the breadwinner. While they don’t bring home a salary, stay-at-home parents contribute to the family in more ways than one, and that can be a potential cost to cover as well.

You might be able to get more extensive, more affordable cover

In your 30s, you’re generally healthier than later in life, as you’re unlikely to have many of the medical conditions that can emerge as you get older. This means you may be able to get more extensive and more affordable life cover, too.

Life insurance premiums depend on a number of factor, including your age. Plus, the fewer health conditions you have (or have had in the past), the fewer potential exclusions you might have in your policy. And what’s more, if you take out cover now, any conditions you may develop down the line will likely be covered.

Like to explore your options?

Get in touch. We can help you work out if life insurance is for you, what level of life cover you may need, and if there are any other types of cover worth considering – like income protection, health insurance or trauma cover.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.