One common question that I had often received from one group of potential prospects during my previous career as a Financial Planner was if there is any need for them (single with no dependents like children) to plan for any Insurance Coverage?
My response was (and still is) a Yes and here are some of the reasons.
Reasons Why You Still Need To Consider Insurance?
#1 – Your Health May Suddenly Change In The Future
You may have some family history of certain illness or other situations (like stress, unhealthy diet) which may cause your health to gradually (or all of a sudden) worsen. By that time, if you hope to get insured (e.g. for a hospitalization plan, critical illness plan or disability insurance), you may have a hard time getting them. Getting yourself insured now while you are still in the pink of health can give you a better assurance in the future.
#2 – You Want To Leave Behind Something Good When You Are Gone
You can choose to leave behind something good (like a lump sum of money) to a good cause (e.g. charity, your favorite nephews’ education or your Business) when you are gone. Planning for this (e.g. Term Insurance) may not be costly (usually just a small percentage of your take-home pay) and it is also cheaper when you get started when you are younger and healthy.
#3 – Insurance Can Take Care Of You While You Are Still Alive
There are many different types of (Life, Health and General) Insurance that can support you financially while you are still alive.
Examples are:
- Personal Accident Plan provides you with financial support when you are recovering from an accident.
- Hospitalization Plan takes care of most Hospital Bills when you get hospitalized.
- Home Insurance takes care of your precious Home Content against the unforeseen.
- Travel Insurance gives you some form of assurance before, during and after your overseas holiday.
- Endowment Plan helps to grow your some of your savings to prepare you for your retirement.
- Annuity Plan helps to supplement your retirement lifestyle.
- Life Insurance provides lump sum financial support if you are alive but permanently disabled.
- Critical Illness Insurance provides lump sum financial support to help you to focus on your treatment and recovery.
#4 – Insurance Takes Care Of Many Outstanding Issues When You Are Gone
Life can be really unpredictable and by planning for insurance early, it can take care of many issues like Outstanding Debts and Liabilities like Taxes, (School, Mortgage, Car, Joint) Loans, Funeral Expenses or Medical (or Credit Card) Bills. You can read up more from this MyLegacy (a Government-related Site). Let your Closed Friends and Family Members remember you and mourn for you instead of having to have these financial concerns to worry about.
Single or not, chances are that you may identify with at least one of the reasons or scenarios. Take some time and talk yourself through (or with a Financial Planner) to see how financially prepared you are should anything happen. If there’s any shortfalls, you should always plan while you are still young and healthy.
