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Gen Y – Financial Independence & Life Insurance

Gen Y – Financial Independence & Life Insurance  Author: Madison Stay Our lives look very different to those of our parents and grandparents. The Australian Bureau of Statistics (2015) notes that for Gen Y, the average age that people are getting married at has risen to 29.8 for women and 31.8 for men. People are having children later too. The average age of first time mothers has increased to 31, and men are most often becoming fathers at the age of 33 (ABS, 2015). With most young people living independently, it’s easy to wonder why you should bother with something like life insurance. When no one relies on you for any sort of benefit from a life cover policy, the reasons to commit to insurance don’t seem to add up. However, the reason for committing to insurances now is pretty simple; because the future is going to happen. Life is a financial journey. With the costs of housing rising steadily, a financial commitment like buying your first property tends to mean acquiring a loan or mortgage. Insurances can safe-guard your family or friends from having to dig deep to pay off your financial commitments in the event of anything happening to you. While you may be embarking on your journey of financial independence, it is a long road. That independence won’t happen overnight. If you’re unable to live debt-free in the present, someone will have to assume responsibility of your financial commitments should something happening to you. This is why insurance is so important; even if you don’t believe that there is anyone that will directly benefit from your insurance, your financial decisions will endure regardless of changing circumstances. Several superannuation funds incorporate basic insurances into your superannuation. While to some this may seem an unnecessary inclusion, insurance cover is something that can grow with you, through all stages of your life. Basic cover that is amalgamated with your superannuation is a good point to start from. It not only protects you, but also helps you assess what you actually need to protect now, and what to protect in the coming years. Regardless of your current salary, as your career, income and subsequent financial obligations progress, so can your insurances. Insurance is a malleable asset; always keep in mind as every life event occurs, your insurance can be tailored to them. Although you may have no one that relies on your income to exist right now, relationships and children could be on the horizon. It’s a lot easier to adapt your insurances than to apply for a whole new policy that encompasses your dependents and pre-existing financial obligations. Gen Y is told that our twenties are a time to live in the moment. However, it is seldom said that these years are also a time to pre-plan, determine your values and consequently safeguard your future. While insurances may not seem like a priority now, look at them as a long-term investment in who you are going to be in the future, and the kind of lifestyle you’d like to have. If cementing your financial freedom in the future is something you would like to do, contact us here at AMEGA FS, to have an experienced planner give you a helping hand on your journey.         General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information. ABS, 2015, http://www.abs.gov.au/ausstats/abs@.nsf/mf/3310.0

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