This is the time of your life when you have big aspirations for the years ahead. Perhaps you imagine starting your own business, financing that new car, or even committing to those travel plans.

Whatever your ambitions, the road to building a life involves more than taking risks or accruing wealth. It’s about making the most of your opportunity-cost today: and the younger you are, the more valuable this potential. Starting early and insuring yourself while you’re financially-free is an invaluable lesson in getting ahead. Everything we dream of – in the future and today, is dependent on our income.

Protecting your monthly earnings against the risk of injury and illness is the key financing our lifestyle today and our long-term plans. With this in mind, it’s critical not to hesitate when it comes to applying for life insurance. Don’t wait until you have dependents or debt.

At FMI, life insurance means so much more than just providing for your family if you are no longer able to – it’s your chance to make sure that you can continue to make an impact on those around you, should you be unable to work. If you’re wondering what it takes to leave your mark on the world start by asking yourself if you’ve insured your ability to even try.   

The value of your future income

You have your entire career ahead of you, so there’s no better time to capitalise on your future wealth than right now. The reality is many of us underestimate the value of our future earnings. For example, a 25-year-old earning R15 000 a month will earn a staggering R38.3 million over their working career.1 If you’re interested in finding out what your future income is, go to https://www.fmi.co.za/mi

Your risk reality

Many of us young severely underestimate their risk of injury and illness. According to a recent consumer survey, people between the ages of 25 to 35-years old are twice more likely to have an injury or illness during their working career and 5 times less likely to die before age 65 than they think.2 More specifically, the average 25-year old only has a 9% chance of dying versus a massive 96% chance of a temporary illness or injury that will keep them off work for more than 2 weeks during their working lifetime.3

Understand your options

Make sure you have the right cover in place, so that if you need to claim, you can. It’s important to understand that typically, you can only claim on lump sum Disability benefits if you are permanently disabled - which means these benefits will not protect you from your most likely risk of a temporary injury or illness. The best approach would be to choose temporary and long-term Income cover to make sure you’re protected now and in the years to come.

Affordability

Many people believe they can’t afford life insurance, but most of us can… it’s just a question of priorities. Our survey found that 57% of South Africans spend more than R500 a month on fast food, and yet a 25-year old can protect 100% of their income for less than R200 a month.

Future-proof your cover

It’s important that your cover is flexible so that it can adapt and remain tailored to your specific needs - through life’s ups and downs and through any life stage - with no restrictions.  So, make sure you get a policy that allows you to increase, decrease or add benefits later on, even if you’ve claimed or your health changes.

 As a young professional you’ve got an exciting future that full of promise and opportunity – give yourself the freedom you deserve to go after those ambitions, knowing you have the right cover in place. If you learn one thing today, let it be this: protecting your income against injury or illness is the smartest decision you’ll make. 

 

FMI Future Income Calculator. 6% nominal growth, retirement age of 70

FMI #RealityCheck Consumer Survey 2018

3 FMI Risk Stats 2019. Risk stats calculated on probability for 25-year old before retirement age of 70.

FMI Quote Calculator

 

Informative Reading | November 14, 2019

No need to predict the future with Life Income benefits

Life Income benefits offer perfect bespoke short and long-term solutions to complement any Lump Sum cover you may already have in place in order to fulfil individual responsibilities and the needs of dependants.

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Informative Reading | November 13, 2019

It’s time for South Africans to start seeing life insurance differently. It’s time for ‘Income First’.  

That’s why we talk about ‘Income First’. We’ve got to change the conversation from ‘protecting your life’ to ‘protecting the income you haven’t even had a chance to earn yet’. There is no asset more valuable than your ability to earn an income – and right now, income protection is the biggest gap in most people’s financial plans.

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Informative Reading | November 13, 2019

Life is better when you're prepared for it

The progressive approach is to first protect 100% of your hard-earned, monthly income against what’s most likely to happen, which are the risks of injury, illness, or being diagnosed with a critical illness.

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