Life assurance is often seen as something you sort out in middle age—alongside wills, pensions, and mortgage pay-offs. But that’s a myth. In reality, millennials and Gen Z are in a prime position to benefit from life assurance early, both financially and strategically. Whether you’re building a career, starting a family, or launching a business, life assurance can offer vital protection and peace of mind. Here are five smart, forward-thinking ways younger generations can use life assurance right now.
1. Lock in Lower Premiums While You’re Young and Healthy
One of the biggest advantages of getting life assurance early is simple: it’s cheaper. Insurers calculate premiums based on risk, which includes your age and medical history. So, if you’re in your 20s or 30s and in good health, you’re likely to pay significantly less than someone starting in their 40s or 50s. By securing a policy now, you can lock in low monthly payments for years to come. That means long-term savings—and a head start on building financial resilience.
2. Protect Your Income with Added Cover
If you rely on your income to pay rent, bills, or support others, income protection cover (often available as an add-on to life assurance) is a practical investment. It steps in if you’re unable to work due to illness or injury, offering regular payments to replace lost income. Unlike statutory sick pay—which is often low and short-term—income protection provides sustained support, helping you stay afloat and maintain your independence during recovery. For freelancers or self-employed individuals with no employer safety net, this type of cover can be a lifeline.
3. Consider Critical Illness Cover for the Unexpected
Critical illness cover provides a lump sum if you’re diagnosed with a serious condition like cancer, stroke, or heart disease. While we may feel invincible in our 20s and 30s, these illnesses can strike at any age—and when they do, they can turn your life upside down. Having financial support during recovery means you can focus on your health instead of worrying about rent, student loans, or credit card payments. It’s also helpful for covering treatment, travel, or adapting your home if needed. Many life assurance policies allow you to add critical illness cover for a modest increase in premium.
4. Use Life Assurance to Support Your Financial Planning
Life assurance isn’t just for “what if” scenarios—it’s also a tool for long-term planning. Some policies, such as whole-of-life or investment-linked life assurance, can double as a savings vehicle, building value over time. While these are more complex than basic term assurance, they’re worth considering if you’re looking for ways to: – Build a financial legacy – Support dependants or future children – Cover inheritance tax liabilities – Add balance to your investment portfolio. Think of it as another building block in your financial strategy—alongside pensions, savings, and ISAs.
5. Protect Your Loved Ones—Even if You Don’t Have Kids Yet
Even if you’re not married or don’t have children, life assurance can still provide essential protection for people who rely on you. That might be: – A partner sharing a mortgage – Parents you support financially – A sibling with a disability – A business partner or co-founder. By choosing the right cover, you ensure that your loved ones aren’t left struggling with your debts, rent, or funeral costs. A small monthly premium could offer them major peace of mind—and provide you with the satisfaction of knowing you’ve got things covered.
Final Thoughts: Start Early, Think Long-Term
Millennials and Gen Z are often balancing rising costs of living, student debt, and a changing job market. But that makes financial protection even more important—not less. Life assurance isn’t just about preparing for the worst. It’s about empowering yourself to take control of your financial future and support the people who matter most. Think of life assurance as a form of financial self-care—quietly working in the background, just in case life doesn’t go to plan.
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