Life Insurance. I wish my parents had told me more about the significance of those two words when I was younger. In fact, I wish I was taught a little bit more about money when I was in school. Money management, from budgeting, investing, to risk mitigation, is a crucial skill that should be taught to everyone.
I used to roll my eyes whenever someone talked to me about insurance. I never would have imagined myself going into the insurance sales industry. Being young and naive, it is difficult to fathom the possibility of dying or suffering from dread diseases.
Then, life hit me. No, nothing bad happened to me. I simply became more mature and realized that I have to start being responsible for myself. I didn’t want my family to be burdened when I’m gone. Worst still, I didn’t want them to be burdened by me should I fall ill. There is an element of truth to the saying that in Singapore, you can die but you can’t fall ill. Let me get there in a bit.
Life insurance was never a need, but a want. It prevents the adversities of life from hindering your progress towards your goals.
I have an aunt, who during family gatherings, would always ask how my family and I are doing. Though we had very few topics in common, she came across as a genuine and honest person. She was someone who just wanted a simple life, a roof over her head, and for her kids to be happy.
However, 4 years ago, she was diagnosed with 2nd stage breast cancer. It was shocking to hear that when my mom broke the news to me. I can only imagine how she and her family felt when the news got to them.
Recently, I had the opportunity to speak to her regarding her entire cancer journey.
She told me that at first, she was at a loss for words. Nothing could express the way she felt when she was diagnosed with breast cancer. The second thing she brought up was how much she had to pay for treatment. She had spoken to cancer survivors, who told her to be prepared to spend more than $100,000 on her treatment. At that point, her family was ready to sell off the house because she had no life insurance coverage.
To be frank, I was stunned when she told me that she didn’t get any life insurance coverage for herself. I mean, most people would have gotten some sort of protection coverage… right? Or maybe I was wrong. She confessed to me that she had never gotten insurance because she didn’t believe in insurance and never thought that she would ever contract cancer.
Truth is, she did get cancer and she didn’t have any insurance to protect herself. She had to seek funds elsewhere so that she could get herself treated.
It was through this meeting with my aunt that I realized that sometimes life gives you the lemons that you least expect. And it is up to you to make the right decisions before it is too late to do so.
If you’re young like me, here’s why you need to have adequate insurance in place.
- It’s affordable
- You’re still insurable
When you’re young, life insurance premiums (including early critical illness coverage) tend to be relatively affordable. Depending on the type of coverage you have, it can extend literally until eternity, even though you only pay for a fixed period of time. What is often not mentioned is that insurance is not just bought with money, but health as well. Your ability to be insured is a race against time. Once your time is up, it is unlikely that you can be insured in the future.
If you would like to have a discussion about income and family protection, please drop off your contact details on the wealth management page.