5 reasons why life insurance is important for millennials

If you’re in your twenties, it may seem a little early to be thinking about life insurance – but in fact, it’s never too early to get yourself insured. With the recent Covid-19 pandemic, many people have learned the importance of having a safety net. If these unprecedented times aren’t enough to convince you to sign up for life insurance, we hope the following 5 reasons will!

1. Healthcare costs are constantly rising

You may think that there’s still lots of time to save for future medical expenses, but the harsh reality is that healthcare costs are constantly rising – as high as up to 18% per annum for private healthcare. Before you go off screaming that all hope is lost, the good news is that you can still cope with hefty hospital bills by ensuring that you have life insurance. In the case that you or your loved ones have an illness or accident, you’ll be prepared to face it.
 
2. CPF and Medisave won’t be enough

So you’re making regular contributions to your CPF account, but is it really enough? The answer is no. The truth is, when it comes to retirement or unforeseen circumstances, your CPF won’t suffice. In this case, you’ll need to have another way to invest and protect yourself – and one way to do that is by signing up for an insurance policy.
​

3. Life insurance has risk management characteristics

As millennials have a higher disposable income, we are also higher risk-takers who view insurance as a risk-management product. People will tell you that it’s important to live in the present, but it’s also important to have your eye on the future! Whether you know it or not, we are exposed to risks everyday based on the choices and decisions we make. By having life insurance, we are at least protected against future financial liabilities in the case of sudden demise.

4. The current state of the world

Thanks to Covid-19, economic instability may be something that we’ll have to live with for the next few years. With this in mind, it’s always best to be financially secure and be prepared for a financial crisis or economic crash. Touch wood – but what if you aren’t able to secure a stable job, or fail to have enough savings to get you by? Now, getting an insurance plan sounds like a good idea doesn’t it?

5. It’s more beneficial to buy insurance when you’re young

With insurance, the earlier you buy it, the better it always is. You may be healthy and young now, but as you get older, you will become more prone to critical illness or lifestyle diseases. Getting a life cover for yourself during the early years is often cheaper, and the older you get, the costlier premiums become. Life insurance also covers you against various incidents through different add-ons, but the eligibility to buy these add-ons depend on your health and also – you guessed it – age.

To know more about how you have a holistic insurance coverage, do scan the QR code below for a non-obligatory discussion.