4 Reasons why Singles and with No Dependents should still consider Insurance.
When is the last time you did a review for your insurance policies?
If you have been trying to avoid such reviews for your insurance policies, there are actually some benefits (I have 5) you can gain from it.
1. You May Get To Save Money
We are currently living in a time era where policies can be confirmed and bought over the phone and even through leaflets. Plans like Personal Accident Plans are of such.
If you have just started work, around the age of 25 and holding a monthly salary of around $2,500 (Gross, before CPF contribution, bringing home around $2000) onwards, then you would love to appreciate this post as I will be sharing with you on how to plan well (coverage in almost every aspect) with just 10% of your monthly “bring-home” income ($200/month).
Note: If you are finding it hard to set aside this 10%, please read my Financial Planning Tip #1 – Paying Yourself First…
Note #2: The plans discussed below are mostly offered by the Insurance Company that I am representing and should not be served as a direct guide. Any queries, please do contact your Financial Planner.
How To Plan With $200/month?
The premiums are derived based on a Male, age 25, and a non-smoker. Rates for Female may differ accordingly.
1. Medical Insurance (Compulsory) With Rider (Optional)
With the recent property boom in Singapore, there’s an increment in people taking up Private Bank Loan and thus creating a concern in terms of financial planning – a need to protect the mortgage loan (and their pricey assets) should anything unforeseen happen to the Loan Owners…
The Common Belief – Should Anything Happen, I Can Just Sell Off The Property…
If everything is so straight forward, life will be perfect! In Reality, Property does not sell by itself especially if the Developer had done quite a heavy bit of their own advertising. The initial selling price is usually jacked up and to really pull it off in selling – takes patience, time, effort, negotiation and being able to sustain the few months of loan payment.
Or even the worst case of selling the property below the market value…
So What Should You Do? For Any Mortgage Loan, There’s Mortgage Insurance!
If you only know Term Insurance, there’s in fact a Mortgage Insurance or commonly known as Mortgage Reducing Term Insurance and not to be confused with Decreasing Term Insurance.
Have you ever wondered what does it mean to you when you decide to say No to a Financial Planner, who is doing up a financial needs analysis and at the same time recommending some insurance plans to you?
The Role Of A Financial Planner
Basically the role of a Financial Planner is to make you realize or indirectly disturb you emotionally with a Problem (concern about Medical Bills, not enough for Retirement or the means to save enough for your Child’s University Education) through a Financial Needs Analysis Process.
And after doing so, he will recommend a set of solutions to the above problems by means of committing to a certain range of Insurance Product – Endowment, Investment-Linked Plans, Medical Insurance and/or Critical Illness Insurance.
The objective of this post is not to tell you much about what a Financial Planner does for a living and here I will assume that the Financial Planner who may be attending to you is capable of doing what he/she is required to do in Financial Planning.
But rather, I will focus on, if the Financial Planner has actually done well (to make you realize that you have a problem) but in the end you decide to say one of the Few Common Nos’ (known as Objections to us) like:
- I Do Not Need Insurance
- I Have No Extra Money For Insurance
- I Would Like To Wait
So let’s get down to the first No…
What Does It Mean To You When You Say That You Do Not Need The Insurance…
After working as a Financial Planner for the last two and a half years and being able to come across many real life situations with regards to insurance death claims – I have recently witnessed two death claims whereby
- a guy in his late 40s whom lost his dearest wife and is in a total loss and
- another case whereby the family is with mentally handicapped children and the wife is left with no insurance monies as the hubby has never done up any insurance coverage before…
I just have this sudden feeling to blog about this…
And I will be talking about something that most of you will not be interested to talk about – Death! Death is something that is so expected and one fine day you or I will just forget how to breathe. It’s just a matter of time as well but we do not know when is that time – that’s all.
That’s why my blogging topic is with regards to something that is so expected (it will come eventually) but yet so unexpected (you do not know when it will come), and the big question is how prepared are you today? Yesterday is gone and we are still alive and this is something good and tomorrow is still something worth looking forward to.
So should really anything happen today, how prepared are you and your family?