Hey @Stefano, thanks for reading and your kind words!!
To answer your questions:
Question 1: do you think a life insurance is really necessary, if you don’t have (or planning to have any time soon) any children/spouse/mortgage?
There are a few things to consider here, especially as life insurance isn’t just for your dependants, but also for you incase of critical illness or disability (both of which can be financially devastating).
- Does your current employer provide some life insurance coverage?
- Where do you live? Regarding critical illness or disability, if you are in the UK and have access to the NHS, they would cover the main health related issues, but will not give you a lump sum to help supplant your income. This lump sum is important because in these cases one would likely need funds to make adjustments to their home and live on during a period in which they may not be able to work. (I live in Dubai where I don’t have access to any public health services, so getting disability and critical illness cover was really important for me).
- If you’re considering having children anytime (even if it’s not soon), I would say consider getting a policy as they are cheaper the earlier you set them up (I set up mine 10 years ago when I was 24, and am incredibly happy today that I did that).
However, if you do have access to public health services (e.g. the NHS), don’t have dependants (and plan not to), and don’t have debt (such as a mortgage), then you can choose to not get life cover, and consider just the critical illness and disability cover.
Question 2: you don’t mention pensions as a way to save/invest money. What’s your view on this, also considering the updated 8% minimum contribution, with at least 3% from the employer, starting this year? (I appreciate the document takes an international approach, but I assume most people here have their finances based in the UK)
That’s a great point, in short, this sounds great.
I think as much as possible you (and/or your work) should contribute to your pension, and build your own savings/investments independently.
This adds more diversification, will likely reduce your taxes later on, and hopefully enable you to retire many years earlier.
Question 3: how do you make a will legally valid? Can I simply write one using your template, sign it, and put it in an envelop somewhere safe?!
This will depend on where you live. If you are in the UK, it involves getting signatures from two witnesses and storing it somewhere safe (e.g. with your solicitor or at your bank).
Here are the UK Gov guidelines for this: https://www.gov.uk/make-will