I’m young, money is tight and nothing has ever happened to me: why insure?
Rent, instalments, and you want to live a little too. An honest answer, including when life insurance is NOT your first priority, and what the right order is.
In short
If nobody depends on your income and you have no debts, life insurance may not be your first priority. The right order is: first a small emergency fund, then protecting your income, then the rest.
- Write down who depends, even a little, on your income.
- Start an emergency fund, even with a small monthly amount.
- Ask your employer what the group scheme covers, and Social Insurance what benefits you are entitled to.
- A small cover you can keep is better than a big one you will stop.
From the series “The questions you are afraid to ask”: questions real people ask, with honest answers.
At a glance
- If nobody depends on your income and you have no debts, life insurance may not be your first priority. That is the honest answer.
- First a small emergency fund, then protecting your income, then the rest.
- The premium usually depends on age and health when you apply; health can change.
- A small cover you can keep is better than a big one you will stop.
A reasonable objection
In your twenties and thirties, money has many places to go: rent, a car, studies, a trip you have waited for. Insurance feels like something for “later”, and “it won’t happen to me” sounds reasonable when you are healthy. We are not going to try to scare you. We will tell you when it makes sense and when it does not.
The question that matters: who would struggle?
Life insurance exists for the people who would be left behind. If someone depends on your income (a partner, a child, a parent you support) or there is a loan that would fall on someone else (a guarantor, for example), it makes sense. If not, something else may matter more: what would happen to you if an illness or an accident kept you away from work for months.
The right order, not everything at once
- A small emergency fund, for life’s smaller knocks.
- Income protection, if you stop working because of your health.
- Life cover, as soon as someone depends on you or there is a loan.
- Saving for goals, with time on your side.
The advantage of youth is mostly health. The premium usually depends on your age and health when you apply, and a condition that appears later may bring an extra premium or an exclusion. And pure life cover (without savings) usually costs much less than a plan with a savings element for the same amount of cover.
For a sense of scale: in 2024 life insurers in Cyprus recorded about €287 million in gross claims and benefits (Insurance Association of Cyprus data; this includes maturities and surrenders, not only deaths). Behind the figure there are people, many of them young, who did not expect to need it.
Your questions, one by one
I’m young and healthy — why would I need life insurance?
If nobody depends on your income and you have no debts, you may not need it yet, and that is an honest answer. It matters when someone would struggle without you: a partner, a child, a parent, or a loan someone else would pay. Being young and healthy usually means cheaper cover, not that you will never need it.
I’m single with no kids. Who would I even protect?
For life cover, perhaps nobody, and that is fine. Ask instead what would happen to you if an illness or an accident stopped you working for months; income or critical illness cover may matter more there. Think also about whether there is a loan with a guarantor.
I can’t afford insurance right now.
Then start with what costs nothing: a budget and a small emergency fund. When there is room, pure cover for the most important thing usually costs much less than plans with savings. A small cover you can keep is better than a big one you will stop.
My spouse works — do we both need cover?
Often yes, if the household relies on both incomes, for example if the mortgage is paid from two salaries. Ask: if one income stopped, would the other cover the loan, the children and daily costs? The answer shows how much cover each of you needs.
Does a stay-at-home parent need life insurance?
It is worth thinking about. Their work at home has a real cost if it has to be replaced: childcare, help at home, fewer working hours for the other parent. Cover here is about keeping the family’s daily life going.
I’d rather enjoy my money now than pay for something that may never happen.
It is a fair choice, and enjoying life matters. Insurance does not mean sacrificing today; it means one bad event does not take tomorrow with it, yours and your people’s. Cover sized to your budget can sit alongside the things you enjoy.
My parents and the state will help my family. Isn’t that enough?
Family help is precious, but it may not be enough or last, and parents grow older too. Social Insurance pays certain benefits, under conditions that depend on your contributions; check what applies to you with the Social Insurance Services. Find out what exists before you decide you need nothing.
What does Social Insurance pay to my widow/children if I die?
The widow’s or widower’s pension is 60% of the value of the deceased’s average insurance units, rising to 80%, 90% or 100% with one, two or three dependants, under conditions linked to contributions; it stops if the surviving spouse remarries. The claim must be made within 3 months of the death. There is also an orphan’s pension for the children, and a funeral grant, claimed within 12 months; we have not verified its 2026 amount. The euro amounts depend on contributions, so ask the Social Insurance Services about your own case and use that figure, not a guess, when you work out what your family would need.
I have savings and property — do I still need insurance?
You may need less cover. Ask whether the savings would cover the family’s needs for as many years as needed, and whether the property would have to be sold at a bad moment. Often insurance is there so that savings and property do not have to be used up.
Is it cheaper to start in my 20s?
Usually yes: the premium is set on your age and health when you apply. Check, though, how your own premium is set, level or increasing. The biggest advantage is health: a condition that appears later may bring an extra premium or an exclusion.
My employer gives me group cover — that’s enough.
It is a good start, but check three things: how much it pays, whether it covers illness or only accidents, and what happens if you leave the job. Group cover usually ends with the job.
Is a small policy better than nothing?
Usually yes, if it covers the most important thing, such as the loan or a few years of income. You can often increase cover later, but new cover may come with new health questions.
I’m self-employed — what happens if I can’t work for six months?
Without an employer there is no sick pay from an employer. Social Insurance may pay sickness benefit under conditions; check what applies to the self-employed. The usual answers are an emergency fund and income protection cover.
I’d rather build an emergency fund first. Is that wrong?
Not wrong at all: it is a sensible first step. A few months of essential costs protect you from small knocks; insurance protects you from the big ones a fund cannot carry. Many people build both, little by little.
Nothing bad ever happened in my family — why expect it now?
We truly hope it stays that way. Insurance is not a prediction; it is a plan for what nobody expects. Family history affects some risks, but accidents and many illnesses do not ask.
How do I calculate how much my family would need without my income?
Start from the yearly costs your family would still have, multiply by the years until the youngest child is independent, and add debts and education. Subtract savings, existing cover and Social Insurance benefits (ask for the amount). The income gap calculator on this page does the first part for you.
What’s the smallest step I can take this month?
Write down your monthly income, your essential costs and who would be affected if your income stopped. That alone shows where you stand. Then try the income gap calculator on this page.
What you can do from today
- Write down who depends, even a little, on your income.
- Start an emergency fund, even with a small monthly amount.
- Ask your employer exactly what the group plan covers and what happens if you leave.
- Find out from Social Insurance which benefits apply to you in illness or death.
- Set an amount for protection you could pay comfortably for years.
Every policy has its own terms. What we write here is general information, not advice; for your own case, what your policy says applies, and it is worth confirming it in writing with your insurer.
Sources
Read also: Ages 25–30: where to start · I have become a parent: what changes · Self-employed: if I fall ill, who pays me? · How much cover do I need?
If you would like a second look, book an appointment with an advisor and bring your policy and your questions. You will go through them together, with no obligation.
