Why You Need Insurance


Insurance is essential for you to be able to concentrate on the important things in life since it ensures financial stability for you and your family in the event of a disaster. When big financial difficulties develop, such as hospital bills or medical expenditures, insurance can help cover the costs, allowing you to pursue your goals.

PHOTO SOURCE: Regional Health System Planning Office, NUHS

Here is how insurance helps you achieve your goals:

  1. If you get sick, have an accident, or become disabled, health insurance can help you pay your bills.
  2. If you become unable to work, income protection protects your income by replacing it.
  3. Should you become unable to work, life insurance gives financial support to your loved ones. Having this form of insurance allows individuals to maintain a comfortable lifestyle while minimizing their worries.
  4. Education and retirement plans enable you to realize your goals, whether it's providing your children with an international education or ensuring a decent quality of living throughout your retirement years.
  5. Endowment plans are more than just a way to save money to leave to your spouse or children. They can also be used to fund medium- to long-term ambitions, such as a home upgrade, higher education, or maybe a vacation.

Now that you understand why you require it, here is some additional advice:

When is the ideal time to begin considering insurance?

The sooner you start, the better! The greatest time to start building your health and lifetime protection is when you get your first paycheck. Early coverage will provide you with peace of mind at the lowest available premiums. You can change the degree of coverage by selecting the cover and premium that best meets your needs and budget.

What kind of coverage should I get?

Protect your health and that of your family first, and then consider life insurance to protect your family's finances in the event of your death. Finally, think about purchasing insurance that will allow you and your family to save for the future.

How much Insurance is enough for me?

Every budget and need can be met with health, life, and savings policies. It is critical to manage your finances wisely and set aside a percentage of your salary for a rainy day or an unexpected health problem while deciding what suits you. The amount varies, so it's a good idea to see a financial advisor to figure out what's best for you.

What should be the first form of insurance coverage I consider?

Start with personal health insurance to address your most vital needs as a first step toward securing protection. This would entail safeguarding oneself against accidents and obtaining coverage for hospitalization, surgery, and other medical bills.

What should I do to safeguard the future of my family?

First and foremost, you must safeguard yourself. Then, to safeguard your family, make sure they have enough money to cover all of their needs. These costs could include paying for your children's school, paying off your mortgage, setting aside funds for unforeseen crises, and caring for dependents such as elderly parents.

Will I be denied insurance because my family has a history of disease, such as cancer, diabetes, or high blood pressure?

No, you will not be denied insurance, but a family history like this could result in a loading charge, which could be up to 50 percent greater than the usual price. That is why, as long as you are in generally good condition, it is critical to become insured as soon as possible. Don't put off getting health insurance because, if you have a family history, any illnesses you have could increase your loading or exclude you entirely. In the end, paying a greater premium is preferable to having no insurance when an illness strikes.

My parents are financially supported by me. Is there a plan in place to look after them if something happens to me?

Yes, there are a variety of insurance plans that allow you to name your parents as beneficiaries of a lump sum settlement if you die. This payment will assist your parents in meeting their financial obligations. You might also enroll them in insurance policies that will cover hospitalization, surgery, physiotherapy, and even traditional Chinese medicine therapies. In the case of disability, these provide monthly payments or a lump sum payment.

What if I can't afford to pay my premiums because of financial or health issues?

There are several choices available to assist you during this tough time. A temporary premium holiday or premium loan is one option. Another option is to receive a monthly income supplement if you are unable to work. Some education savings plans contain an extra benefit that kicks in if a parent becomes ill or dies, waiving future premiums on the child policy and ensuring that tuition fees are covered in full in advance.

Apex EP is an authorised group of Financial Adviser representatives from Professional Investment Advisory Services Pte Ltd.