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I’m young, why do I need insurance?

When we are young and healthy you tend not to think about insurance beyond our car or maybe our phone, but it might pay to think again.

When we are younger, we have fewer resources, but value being independent above all else. In our early careers, incomes are lower, and our costs as a percentage of incomes are higher. The first jobs we have, tend to come with limited employee benefits. Or the work we do may be going contract or changing jobs often. We tend to prioritise career advancement opportunities over benefits at this time in our lives. Even when we are younger and starting in life, we still have obligations and responsibilities:


Your largest single outgoing is rent, and if you’ve moved for work your whole way of life is centred around your new relocation for work and this is dependent on keeping up to date on your rental payments.

An income protection policy is designed to pay a monthly amount and can be used to take care of those essential bills and rent and utilities if you are signed off sick from work.

The ability to save is very low in today’s world and to get 3 months’ rent of savings saved up could take over a year. The time cost of eating into savings should you not be able to work, is very high when we consider how long it would take to rebuild emergency funds.

Personal DebtPerhaps you have a car or have recently invested in further education and taken personal loans. If you fall ill, you may struggle to keep up with these payments and then this can damage your credit rating for many years to come. Income protection payments can also cover these payments. If you suffer from a major or minor serious illness, a small critical illness policy with a sum assured of as little as £15k would ensure that these were all paid giving you 1 less problem to worry about.

Treatment and Recovery Cost

If you were to fall ill, and perhaps have to leave your work, you would want time to recover. You would also want support to help you get back on your feet. Policies like income protection and critical illness are great ways to build buffers to give you time and not feel pressured to go back to work too early. Income protection policies can work around you and pay the difference in case you go back part-time for example. Many providers offer value added benefits such as contacting a nurse or information services to help you on your road to recovery.

For some, just because they are young, doesn’t mean they don’t have dependents. Younger parents may want to provide for their children, or perhaps your parents have come to rely on you in one way or another. This help would need to be replaced in some way should anything happen to you.

Thinking About Your Future

Finally, nothing is stopping securing your cover early, before any potential illness that could elevate your pricing later and having the right foundations in place for you to grow into your future cover needs over the coming years. Policies are flexible and can be adjusted over time, often without extra underwriting.