We are all just human beings, and the only certainty in life is that eventually, we all pass away. So, while you may think that car insurance is more important, it's not- you may never be in an accident, but there is a guaranteed chance you will need life insurance at some point.
Young adults without a family, in particular, don't think they need life insurance. But these 'Invincibles' actually have the greatest need for it- while their need for life cover is lower, their need for income protection is higher. That's because their time to retirement is the longest, so the total future income they need to protect is higher than older people (more than 2.5 times higher in fact**).
Despite the need for this product when you are young and healthy, it's not something we like to think about until something bad happens. But by then, it may already be too late for you to get covered. That’s because if you are ill and then start thinking about getting protected, you may have to pay higher premiums for the rest of your life, or you may not be able to get cover at all.
This means that you should get coverage as soon as possible to lock into a lower premium- the younger, the better as you will lock into a lower life insurance premium.
But old life insurers tend to punish you when you do this. That's because they force you to lock into a long-term contract, with premiums that start out low but increase as you get older (when you need the cover), and with coverage that is static and difficult to change to meet your needs as they evolve.
OneSpark's Pay-As-You-Need model was designed to overcome these flaws in old life insurance and make it easier to take it out when younger. When you're young with no financial dependants, for example, your need for life cover is minimal, but your need for income protection and disability cover is high. But the need for these various products changes as you get married and have kids.
To align with this changing need for cover, at OneSpark, you get a living policy that uses advanced algorithms to adjust your policy dynamically to make sure you are always optimally protected for your specific situation and needs.
In short, this means that with OneSpark you're not locked into a long-term contract but rather get a policy that evolves every year to match your changing needs. This creates a far more sustainable product for you and results in you saving up to 70% on your premiums compared to old life insurance products**.
So, the next time you hear of someone getting sick and delay taking out life insurance again, just don't; it could well save your life one day (and there is no longer an excuse with OneSpark around now).
To get a quote in seconds or to chat to an expert financial adviser for more information, visit www.onespark.co.za today!
References and assumptions:
*Internal OneSpark research
**Assuming a 21 year old female professional, SE class 1, non-smoker.