Why do young people not take insurance seriously?
The apathy many youths have towards insurance can be linked to two reasons; a limited understanding of the benefits that insurance affords young people and the illusion that insurance is for ‘grown-ups’.
While it is understandable that insurance is not top of mind for young people between the ages of 18 to 25 who are focused on adventures, getting an education, and starting a career or business, the importance of embracing insurance early on in one’s life cannot be overemphasized.
Let’s take a look at five reasons insurance should be taken seriously by those who are under 25:
Preparedness for the Adversities of Life
Being youthful does not shield anyone from unexpected and fatal occurrences like terminal illness, accidents, and fires. Having insurance cushions the ripple effect of such events through the coverage of medical bills, property replacement, or the provision of cash to stay afloat or start over.
Learning Financial Responsibility
Insurance helps young people build a culture of financial responsibility early on, making it seamless to continue as they grow financially. Paying your insurance premium against all odds teaches you to be disciplined and organized financially.
Studies have also shown that persons under 25 who have insurance are three times more likely to save, invest, and amass wealth in comparison to their peers who don’t have insurance.
Age is on your side
Insurance premiums are significantly cheaper for young people because age and health are the top two factors used to determine premiums. The younger a person is, the more inexpensive premiums they can access because they are deemed as low risk by insurance providers.
If you get insurance coverage while you are under 25, you can take advantage of low premium rates and save a huge chunk of money in the long run.
Easing the Pressure of Student Loans
Due to the rising cost of quality education, many individuals under the age of 25 have been taking loans to finance their undergraduate or postgraduate education. The goal for such people is to graduate and secure a job that pays well and allows them to service their loans easily.
Loan insurance is something such students must consider. For instance, insuring student loans with Casava’s Credit Life insurance ensures that if the borrower were to unfortunately be involved in a fatal accident that causes disability or death, Casava as their insurance provider would pay off the loan on their behalf.
This would prevent the responsibility of servicing the loan from falling on their loved ones who are now their caretakers or mourning their passing.
Generational Wealth
When young people think of routes to build generational wealth and climb up the socioeconomic ladder, many of them think in the direction of investing in stocks or cryptocurrency, starting a business, and landing a well-paying job in a lucrative industry.
Very rarely do they think of insurance.
Insurance is the older generation’s best-kept secret asset for generating wealth. While products like life insurance protect the loved ones of the insured in the event of their passing, they are also a low-risk, long-term means of saving and investing.
Conclusion
Insurance might not be foremost in the minds and priorities of young adults under the age of 25, yet the power it wields cannot be overemphasized.
If young people began to take insurance coverage seriously now, they would have laid the foundation for a stable future in their thirties, forties, and beyond.
We encourage every person under 25 to embrace insurance today as the perfect risk management tool to prepare for unexpected events, develop healthy financial habits, protect loved ones, and amass generation wealth.
