Life Insurance Guide
Life insurance for young singles
Don't let life's mishaps hold you back
Life’s pretty sweet when you’re 18 to 30 and single. You’re healthy, carefree, upbeat and at your prime with minimal responsibility. Since you’ve got a long and exciting future ahead of you, the end isn’t a concern for now – which means travel and the fun stuff are on the cards and insurance is probably simmering on the back burner with marriage and babies. But isn’t your financial independence worth protecting?
Whether you’re wrapping up your studies or carving out your career, chances are you’ve probably accumulated some assets and a bit of debt along the way – like your car, student loans and purchases on plastic. With just yourself as a breadwinner, how would you continue to make ends meet if you were suddenly without an income?
Help protect your...
Do I need insurance if I’m single?
As a young Aussie with no dependents, your path to financial security can be a lot smoother when all you have to worry about is yourself. On the flipside, who can you rely on if something went wrong? You may have no one to turn to for financial support if you unexpectedly became sick or seriously injured and were unable to work. That’s why getting covered is something young adults with debt consider to help stay protected from financial worry.
What cover could be right for you?
Consider what impact being unable to work might have on your nearest and dearest.
Income Protection Insurance
Helps protect your lifestyle if you’re sick or injured
Existing AAMI customers
receive a 5% discount
You could get sick or injured and be unable to work
You’re young, healthy and probably feeling invincible - but the reality is young people do still have a chance of getting critically injured or ill.
What would happen if you did run into trouble and your pay cheque was paused?
With Income Protection Insurance, you can receive a monthly benefit to help ensure ongoing expenses are looked after. That way, you can carry on with your current way of life and focus on more important things like recovering.
Policy document downloads
Too young or a smart move?
Deciding on life insurances isn’t about your age. It’s about the stage in life you have reached. Beginning when you’re in a young and healthy life stage comes with major benefits:
Affordability
The best time to take out a policy is during early adulthood when you’re in tip top shape. Premium rates are drastically cheaper for younger people compared to those older, as they generally are less risky to insure.
Relief
Enjoy comfort knowing your loved ones may not have to carry your debts or fund your lifestyle if anything were to happen to you in the future.
Flexibility
Increase your cover when your needs and life stage change. E.g. significant milestones such as deciding to buy a home, tying the knot or planning for a baby.
Savings
You can save in the long run by locking in a cheaper premium early. Even better, you could avoid dipping into your personal savings pool if the worst happened.
Tax friendly
You may be eligible to claim your income protection premium at tax time. The tax treatment of Income Protection will depend on your individual circumstances.
Did you know?
Life insurance is significantly cheaper
for young adults, as you are often considered to be healthy and low risk.
Income Protection Insurance
Frequently asked questions
For the Sickness and Injury cover, it depends on the benefit period you have chosen. Each time you make a claim that’s accepted, you can be paid for up to 5 years, as long as you’re still unable to work due to the sickness or injury during that time.
You can claim as many times as you need over the life of the policy. The payment of benefits is subject to the relevant terms that apply to your policy, including any exclusions or limitations – check out the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) to find out more.
We’re sorry you’re thinking of cancelling. For policy cancellations or to discuss your situation further and to consider your options, please call the AAMI Life Team on 13 22 44.
If you do cancel, you may qualify for a refund for the unexpired portion of the premium less our cancellation fee and any non-refundable government charges (if applicable).
Yes, you can typically claim a tax deduction on income protection insurance premiums. If your income protection is part of an insurance bundle, you will only be able to claim on the income protection portion of premiums. If you receive an income protection payout, you should declare this on your tax return. You can confirm your individual tax deductions with your financial accountant by checking the ATO website.
If you suffer from the same or related sickness or injury that you have previously claimed for within 6 months of your last benefit being payable, we will recommence benefit payments without applying a new waiting period. These benefits will be added to the remaining benefit period to ensure the maximum payment under the benefit period is not exceeded. If you’ve made a full recovery and there is more than 6 months between claims, then you will commence a new claim and the benefit period will restart.