Millennials make up the largest generation in Singapore’s workforce today; with an estimated figure of 1.2 million they make up 22% of Singapore’s resident population. As young people, we believe that we are indestructible and insurance seems to be the last thing we need. It might not be something we have considered, but it can be a lifesaver in times of difficulty.
Protecting our health
Often, we hear people talking about insurance being required only by older people. This is a great misconception as basic insurance coverage is equally important to those of us under 30. There is even a possibility that we need it more than those in the older generations. Life insurance keeps us covered and protects our loved ones and ourselves financially when the unexpected happens.
For instance, total and permanent disability (TPD) insurance that often comes together with life insurance offers us lump sum coverage in the event of an unfortunate incident. We can use it to seek the best medical treatment while we recover. With TPD coverage, it allows us to focus on recovery rather than stress over financial woes after a painful experience.
Protecting our income
At the age of 30 and below, we often take it for granted that we will always be healthy enough to generate income. With that mentality, we might overlook the need to protect our income. Regardless if it is to pay off our student loan or buying our first home, it is important to keep ourselves insured so that we will not be stranded in difficult financial situations.
For instance, mortgage term insurance can help to protect our loved ones in unexpected events. In the event of death, total and permanent disability (TPD before age 70), or terminal illness, mortgage term insurance will help to reduce the burden of our loved ones by paying off the outstanding balance of the mortgage loan.
Protecting our loved ones
While death or the inability to generate income might seem far-fetched for those of us that are 30 and below. Life insurance is crucial if we have just started a family or bought a new house. It will help our loved ones pull through times of difficulties if an unexpected loss should occur. It helps to offer us a peace of mind knowing that things i.e. our child’s education, bills, and other financial burdens will be well taken care of. On top of that, premiums are generally lower when we get our insurance plans at a younger age, therefore, it is wise to make plans and get ourselves covered early.
Our aim at the end of the day is to minimise the impact when life throws us a curveball regardless of our age. Discussing our plans and needs with a financial advisor will help them to understand our requirements better, allowing them to craft a tailored coverage for us.