Many young professionals delay purchasing insurance, thinking it's unnecessary. This article explores common myths about insurance and provides a checklist to help young adults assess their need for coverage.
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Many young professionals think of insurance as something for later. Later, when they have children. Later, when they own a home. Later, when there is more room in the budget. The problem is that responsibility often arrives before the budget feels ready.
With National Insurance Awareness Day on June 28, Finchoice says it is worth rethinking why insurance is still seen as a grudge purchase, especially by consumers already managing rent, transport, groceries, debt repayments, and family responsibilities. Insurance can reduce the risk of an unexpected event becoming a financial crisis.
Insurance is often treated as money you spend on something you hope never happens. But the real issue is what would happen to your family, your monthly commitments, or your debt obligations if life changed suddenly. Protection starts to matter long before a crisis arrives.
Many people delay that decision because of a few familiar assumptions.
The first myth is that young people are too young for funeral or life cover. In reality, many South Africans start supporting parents, siblings, partners, or children while still in their twenties. The issue is not age. It is whether someone else would struggle financially if you were no longer able to contribute.
The second myth is that the family or community will contribute if something happens. Stokvels, burial societies, and relatives can provide important support, but they may not cover the full cost of a funeral, a medical emergency, lost income, transport, food, debt repayments, or the weeks that follow.
The third myth is that insurance is unaffordable or a waste of money. For many households, affordability is real. The point is not to overextend yourself. Start with cover that is sustainable, understand what is included and excluded, and review it as your responsibilities change.
A simple readiness check can help consumers decide whether they need to start looking at cover.
Start with these questions.
Insurance is really about the people and commitments that sit behind your unique circumstances and income. If one difficult event leaves your household scrambling to cover costs, then it may be time to seek advice when it comes to adding protection to your financial plan.
Digital financial tools can also help consumers manage their protection more proactively by providing easier access to policy information, payment dates, and cover options as circumstances change.
Financial resilience is about giving your household room to recover from a shock. The right cover can help prevent one difficult moment from becoming a long-term financial setback.
* Whittaker is a chief operating officer at Finchoice.
PERSONAL FINANCE