it’s my story 


This article was written prior to 15 March 2021, before the launch of the new Financial Advice Regime, and was published for information purposes only. It is not being actively promoted by Momentum Life. Momentum Life does not provide financial advice about the suitability of their products and cannot take into account your personal situation or goals. Before you decide to take out a Momentum Life Policy, you should read the relevant Policy Wording document which contains the terms, conditions, and exclusions of the Policy, and seek independent financial advice, if required, to ensure the insurance policy is suitable for you.


Becoming an adult usually means two things: more freedom to do what we want and more responsibility. It’s understandable that young people tend to focus on the fun first (isn’t that something we all like to do?). However, putting off serious obligations for too long could spell trouble.

Getting life insurance is one task that many young people procrastinate on. This is one expense that many have trouble justifying, especially if it means fewer nights out with friends or putting off a holiday for another month. It’s not that young adults don’t care about their financial future—they just might not think that this product is for them.

However, life insurance is designed with the young in mind. In fact, there are some great reasons why taking out a policy early could be beneficial for years to come.

1. You might pay less

Premiums—the amount you regularly pay for a life insurance policy—are partly based on how old you are when you first take up cover. The younger you are, the less you’re likely to pay for a policy.

In fact, the longer you wait to get life insurance, the more it can cost you. Waiting too long may mean that you’ll be priced out of certain policies, or you may have developed certain health conditions that attract a loading on your premiums. 

2. You may get a better policy

Health is another factor used to determine how much you’ll pay for a policy, but it also plays a part in deciding what will be covered. Many life insurance policies include health exclusions, meaning the benefit won’t be paid if you pass away in some instances, and some won’t cover you at all if you have certain health conditions or illnesses. 

People in their 20s and 30s are less likely to have the types of major health issues that are often included as life insurance exclusions. You may be able to get a policy that covers just about any cause of death—even if you develop one of these health issues later. The application process might be quicker and simpler too, especially if there are no medical exams or test results from your GP to wait for.

3. You could help pay off your debts

Many people don’t feel like they need life insurance until after they reach a few milestones. Getting married, having children and buying a home are events that prompt many to take out a policy. But before this point in their lives, they may feel that life insurance is unnecessary.

Even if you haven’t yet reached these adult milestones, there still might be good reasons for considering life insurance. If you have any debts—like car payments, student loans or credit card balances—your parents or other next-of-kin would likely become responsible for these should you pass away. A life insurance benefit could help them pay off your debts, plus the cost of a funeral, without putting them into debt too.

4. You’ll have a plan—just in case

Sometimes the biggest hurdle keeping people from getting life insurance in their 20s and 30s is believing that they’re invincible. Serious accidents, terminal illness and premature death are things that happen to other people, and often only when they’re much older. 

However, these types of tragic events can strike at any time—regardless of your age. Life insurance could mean money on hand to help replace your lost income. 

About Author: Momentum Life is a leading provider of Life insurance and Funeral insurance in New Zealand.

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Disclaimer: The information provided in this article is of a general nature only and does not take into account your personal situation or goals. You should consider whether the information is appropriate to your needs and seek independent financial advice, if required, to ensure an insurance product is suitable for you.

Any product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.