Never too young for life insurance

Angela Mhlanga, head of bancassurance South Africa at Standard Bank, advised consumers not to ignore the importance of acquiring life insurance from a young age.

Mhlanga said it is a necessity younger people cannot afford to forgo. “Often younger consumers focus more on what they want rather than what they need and, as a result, view spending money on life insurance as a hard-to-justify grudge purchase, along with the belief that life insurance is not really necessary in your early 20s, that it is expensive and it is easier to save money where you can get it quickly and easily,” she said.

“[Rather] what should be considered is the positive side of taking out a life policy when you get your first pay cheque.”

She further elaborated on this, saying that taking out a policy at a younger age resulted in significantly lower policy costs which are less likely to make a dent on your disposable income. “Another reason to consider life insurance is because it forces you to consider your long-term future and ensure that you get into the habit of putting a bit away that will help you should the unforeseeable happen,” she said.

Mhlanga explained that younger consumers could choose the kind of cover they needed. This was due to fewer limitations on what cover they could apply for.

“When you decide to get a policy, select a company that you trust, then check that the company is authorised to sell and service the products,” she concluded.

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