Drive carefully if you're under 35

Would you consider yourself a safe driver? It is commonly thought that Women make for better drivers than us men, and whilst this may be true, statistics reveal that the leading cause of death amongst females aged 15 - 34 is in fact motor vehicle accidents. Surprised? I certainly was. Whilst very familiar with the insurance industry, my assumption had always been that diseases such as cancer or heart disease would be the leading cause. I am not completely incorrect as these are leading causes overall for females, when you take all age ranges into account.

So what do the statistics say?

Leading cause of death by age group (Females)

Age 15-19: Unintentional injuries - 51.7%
Age 20-24: Unintentional injuries - 40.5%
Age 25-34: Unintentional injuries - 25.3%
Age 35-44: Cancer - 26.2%
Age 45-54: Cancer - 36.2%
Age 55-64: Cancer - 41.5%
Age 65+: Heart disease - 30.3%

So what type of insurance do I need?

Based on the statistics above, your first thought might be that an "Accidental Death" insurance policy would be great cover. This type of policy is widely available as a quick add-on to services you are paying for already, say for example your credit card, or perhaps with your AA membership. However, whilst this type of policy would likely cover you for the above scenario, it is a poor long term solution.

When you apply for Accidental Death cover it is normally a case of "sign here, now your covered". I am always wary of any insurance policy that doesn't at least ask a few questions, because I know that it means one of two things - 1) You are not actually covered for anything or 2) They will ask the questions when I (or my family) go to make a claim, and then I will find out I am not covered! The case with accidental death cover fits into both categories, you are only covered in the event that your death was completely unrelated to any health condition, and was definitely caused by an accident, and this will be very thoroughly investigated in the event of a claim. Unfortunately you are not able to upgrade an Accidental death policy to full life insurance cover without completely applying for a new life insurance policy. Of course by that time it may be too late to get cover.

The best course of action is to get life insurance arranged from the start as all of the questions are asked up front, you will be assured of being covered for death by any cause, and the premiums while your younger are only slightly higher than accidental death cover. At Inform we can help you with making decisions on what type of insurance is best suited, so talk to one of our advisers about arranging your life insurance cover.

* Statistics based on "Leading Causes of Death by Age Group, All Females - United States, 2004 - Center for Disease Control.

Source: http://inform.co.nz