Life insurance is one of the most important insurance products you will ever buy. This is primarily because we take this form of coverage to secure our loved ones if something unfortunate happens to us. Yet, many working Singaporeans have no form of life insurance coverage at all. This leaves their loved ones exposed to huge financial risks in case the breadwinner stops earning.
Perhaps, there are certain misconceptions which stand in the way of people getting the coverage they require. In this article, we aim to shed light on why you need to buy life insurance right now. We look at 3 myths that might be stopping you from getting the life insurance coverage you need.
1. Life insurance is something you only buy in middle-age
Fact – The best time to buy life insurance is when you are young. The premium rates of life insurance for someone in their 20s and someone in their 50s can differ significantly. This increase in premiums mainly occurs due to the higher risk of illnesses with age. In addition, if you have a pre-existing illness before you buy coverage, your life insurance plan may cost you more than what it would have cost if you bought coverage before the onset of your illness. On the other hand, that pre-existing illness may be excluded from coverage in your life insurance plan. Now, even if we look after our health, there is always the possibility of unpredictable illnesses setting in suddenly. Life insurance helps secure you and your loved ones against unpredictable illnesses.
2. If I save enough money, I don’t need life insurance
Fact – It is hard to predict when things go awry. What if the sole breadwinner of a family suddenly passes away without having saved enough money? Their family may be left with a ton of bills added to their emotional grief. Having life insurance can ensure that your loved ones are financially secure when the unforeseen happens. If the insured individual is struck with a total and permanent disability, they may have to stop working. This can put a dent in their plans of earning and saving for their family’s future. A life insurance payout can ensure that your mortgage gets paid, your children can go to university, and your family can afford to maintain their lifestyle even in your absence.
3. I have no intention of getting married and so, I don’t need life insurance
Fact – Quite often, we tend to forget that our parents too are our dependents. Even if you have no plans of starting a family of your own, you may consider taking a term plan or whole life insurance plan simply to secure your mother and father in their old age. If something unfortunate were to happen to you, your aged parents might not have anyone to turn to for financial support in their senior years. A life insurance payout can ensure that your parents stay financially secure in their old age even if you are no longer around to care for them.
With these misconceptions out of the way, we hope that you will look into getting the protection you need. Speak to a financial consultant today for help in selecting a life insurance plan suited to your unique needs. Take care and good luck!