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Young people and insurance

When a teenager starts work the last thing on their mind will be insurance. In fact, if they haven’t been introduced to the principle of insurance by their parents or guardians then they probably won’t even know that it exists! And this is doing them a terrible disservice.

When a young person gets their first job the first thing they need to do without question, is save. Kiwisaver is the absolute best place to start. With employer contributions and the Government top up year on year it is ostensibly money for free and our young ones should be guided from the outset to take full advantage. Furthermore some small foresight here will secure for them a tremendous advantage when they want to settle down, buy a house, perhaps start a family, all potential eventualities in a person’s life.

Likewise, if we want our young folk to be future proofed by saving then they should be equally, as importantly, insured. Life Insurance is so affordable for young people! Because they are young and usually fit and healthy insurance can be easier to underwrite. And if they, or the older family member helping them with this, ensure that their premiums are level, not stepped, with future insurability then they will get a product that will underpin their insurance requirements for their whole lives. Level premiums only increase in line with agreed CPI adjustments however the coverage increases too so, if you get the right product what you claim for has the same buying power as the day you first took out the policy. And you pay no more than the CPI adjusted premium agreed when you were a young one! It is the way to afford insurance for your whole life with just a little foresight and guidance. And a good Broker advising you too of course.

We can all help our young people with this sensible guidance. We all know that hindsight is 20 20 foresight however is priceless.