As we navigate the complexities of life, it's crucial to ensure that our financial futures are secure, especially for the younger generation. Bidvest Life's 2023 Claims Report sheds light on some compelling reasons why income protection should be a top priority for young individuals.
Why Income Protection Matters for Young Lives
Did you know that millennials (aged 28-43) are 55 times more likely to claim on their income-protection benefits than on their death benefits? This ratio drops to 17 times when considering all age groups. In 2023, millennials accounted for a staggering 50% of all income-protection claims, yet only 12% of death claims. This data underscores the critical need for income protection among younger individuals.
High Claim Payout Rates
Income protection is not just essential; it's also highly effective. In 2023, 91.5% of unique income protection claims were paid out by Bidvest Life. The primary reason for non-payment was claims made during the waiting period, emphasizing the importance of choosing the right waiting period for your needs.
The Impact of Waiting Periods and Mental Health
Waiting periods, typically seven or 30 days, are particularly crucial for younger individuals who often have shorter claim periods. Additionally, mental health is a significant concern, with many young people experiencing stress and other mental health issues. Bidvest Life's report highlights that mental illness was the fourth-most common reason for millennials to claim on their income-protection benefits.
Building Lifelong Financial Safety Nets
Engaging young clients early can lead to long-term relationships and robust financial safety nets. Strategies include starting with benefits like the Child Protector for children under 18, transitioning to Student Cover at age 18, and then to a Comprehensive policy when the child becomes financially independent.
Enhance Your Coverage
Bidvest Life offers additional benefits to enhance your protection. For example, the Critical Illness (CI) Income benefit pays 130% of the insured income for up to 12 months, regardless of whether the policyholder can work, with claims starting at diagnosis.
Take Action Today!
Don't underestimate the importance of income protection for young lives. Here are some steps you can take:
Learn More: Dive deeper into Bidvest Life's 2023 Claims Report to understand the full scope of benefits.
Consult an Adviser: Talk to a financial adviser to tailor a plan that suits your needs.
Share with Others: Help spread the word about the importance of income protection by sharing this post.
Like, comment, and share this post to help others build a strong financial safety net. Let's ensure our young lives are protected and secure for the future.
Need assistance? Contact us at: info@lebonconsulting.co.za
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