I’m a millennial – why do I need insurance?
Five insurance tips for millennials
Black tax is the responsibility that black professionals have to support their families financially and help make ends meet in their households. The reality of many young black people living in South Africa is that a portion of their salaries goes to black tax.
As a young person working your first job, your hard expenses include rent, transport, food, and sending money home to your family. This money goes towards their groceries, paying school fees for a sibling and covering other monthly expenses.
If there is any money left over, the last thing you want to think about spending it on is insurance. But have you considered that if anything happened to you, your family might not survive without your financial contribution?
As much as black tax is considered a non-negotiable monthly expense, so should be insuring your life and, in essence, preserving your legacy.
Here are five tips on taking out insurance as a young, working professional:
- Age ain’t nothing but a number: You’re not too young to take out insurance and the reality is it doesn’t get any cheaper. If you’ve joined the workforce or started your own business and have dependants and financial duties.
- Take insurance as an investment, not a gamble: Think of it this way – it’s better to have insurance and never use it than not to have it when it’s needed. If something happens to you, your financial responsibilities and your funeral costs will fall to your family in your absence.
- Insurance is not as expensive as you might think: You can cover yourself for accidental death for as little as R9.99 for R20,000 cover to R39.99 a month for a main member, spouse and five dependants for R50,000 cover with Yambu Legacy.
- Do proper research: You can’t cover all aspects of your life. When you speak to a financial adviser or independent consultant, it’s important to discuss, assess and then prioritise all your needs. From there, you can ask for quotes and find the right insurance for your life stage and your budget.
- Ask the right questions: Make sure you read all the fine print, as laborious a task as it might be, or ask your consultant to take you through all the exceptions.
Yambu offers a unique type of cover called Yambu Legacy. It’s not your average accidental death cover but also gives you the freedom to decide how you want to use the money and how you want to preserve your legacy. The four types of cover offer six packages from which to choose.
For example, for just R9.99 a month you are covered for R20,000 worth of benefits and you can choose how to use those benefits. You have the option of buying a headstone with engraving and installation at a cost of R5,000 and you get cash back of R15,000 – all starting at a monthly premium of R9.99 per month with a cover of R20,000. Medical testing is not required and there’s no waiting period - you have complete control to build your policy to suit you and your family’s needs.
For more information, visit www.yambu.co.za
This article was paid for by Yambu.