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 misbeliefs that 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 misbeliefs 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. Plus, when you are older, you may not be able to purchase coverage if you already have a pre-existing illness. Even if we look after our health, there is always the possibility of things going wrong. Life insurance helps secure you and your loved ones against the unpredictable circumstances we face each day.
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 breadwinner of a family suddenly passes away without having saved enough money? Their family would be left with a ton of bills added to their emotional grief. Having life insurance ensures that your loved ones are financially secure no matter what. If the insured individual is struck with total disability, they may have to stop working. This can put a dent in their plans of earning and saving for the future. A life insurance payout ensures that your mortgage gets paid, your children can go to college, and your family can afford to maintain their lifestyle even in your absence.
3. I have no intentions 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 get saddled with the responsibility of clearing your debts. A life insurance payout will 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!