Top Tips in Insurance Planning for Millennials

Top Tips in Insurance Planning for Millennials

We’ve all been there before – entering adulthood can be nerve-racking. You may have a lot of questions – and you will wonder if some of them are silly. We are here to tell you that no question or doubt that you have in your mind is unwarranted. In fact, we can never be fully aware of every single aspect to control or manage. A lot of life happens as it is, and we make do from there! 

Learning to deal with challenges is part of the process, but if we had a little bit more awareness about specific things to look out for – think long-term savings, career planning and buying a house – we could probably plan better for them and reduce the margin for errors. 

They say that the 20s are when you are in your prime. Rightfully so, you will make your fair share of your good and bad decisions. If there is one thing you can most definitely benefit from learning at a young age, it is to make better financial decisions. Getting in the habit of nurturing good financial planning works best while you’re young. 

As experienced insurance brokers, we have seen our share of the good, bad and ugly when panic-buying insurance or rushing too soon. Undeniably so, insurance is one thing that you will majorly benefit from if you plan early and scaffold your progress. You don’t need to buy it all at once! But you do need your safety net set up early. 

Let our Expat Insurance Singapore team work with you in managing your insurance planning. 

1. Insurance premiums lower the younger you are.

One of the most obvious facts about the insurance market is that the premiums are lower the younger you are. Why is this so?

Well, it’s for a simple reason. It mostly has to do the fact that younger individuals are much less prone to suffering from chronic or critical illnesses and have a lowered probability of being predisposed to pre-existing conditions. 

We advise young millennials, especially those who have just started out at their first jobs, to look into securing the basic insurance policies early. Not only does the headstart assure you of a lower premium, it also gives you opportunity to acquire more than just basic plans. You can then begin growing your safety net much earlier, building it in strength as you grow older and have more needs.

2. You plan for the future in a more secure way.

Saving in a bank doesn’t cut it! Growing your wealth through a savings or endowment plan compels you to commit to a long-term plan of savings, which allows your money to compound over time. 

Ideally, you want your savings to eventually be the bedrock to fulfilling long-term goals like starting a family, buying a house or travelling the world. Investing in a savings plan – many providers offer 5, 10, 15 years – can help you fulfil that without causing a pinch in your liquid assets. 

Ballparking figures and actively committing to long-term savings becomes much more secure this way.

3. You have a Plan B.

Nobody wants to think about the uncertainties or the probability of unfortunate events occurring. As morbid as it may sound, this is a crucial part to adulthood. 

Believe us when we say that planning for the unexpected is in your best interest. You can never be too sure, and it’s really so much more reassuring to be safer than not. Funding the financial expenses that result from an unplanned illness or loss of income can be debilitating. A critical illness or term life insurance plan can be helpful in circumstances like these. 

When you invest into your insurance planning early, you essentially are taking the steps to prevent unforeseen circumstances creeping in unaware.

4. You can choose from a variety of insurance companies.

There are so many benefits to planning early. You get choice, flexibility and diversity. While there is no hard or fast rule for insurance planning, we recommend starting off with some basic plans. What are they?

  • Critical Illness Insurance: Everyone focuses on the rosy aspects of being young – free from illnesses, full of vigour and zest. We couldn’t agree more. Being young and healthy is a blessing and you should treat it as such! At the same time, it’s hard to be sure that you can financially support yourself from any unforeseen ailments – in which case its financial impact can be downright challenging. Critical illness insurance plans solely protect you from the unpredictable aspects of major diseases such as heart attacks, cancer and kidney failures. 
  • Hospital and Surgical Insurance: Although Singapore is renowned for her robust healthcare system, having a hospital and surgical insurance plan can cover you for medical expenses incurred whilst you are admitted. Ensure you are receiving the best care you can, when you need it. 
  • Term Life Insurance: This covers you in the event of a permanent disability or death. Buying it when the premiums are low will ensure that you have an easier time in years to follow as you settle down and have dependents in your family that you will want to care for to the best of your abilities. 

Find out what mistakes to avoid when buying term life insurance here

With the basic plans in place, you are ready set to grow professionally and personally. Take the time to build on your required plans and if you’d like to amp up the coverage with research and proper consultation. You will also, most definitely, be able to afford for more the further you progress at work.

Start Planning Early | Get Your Insurance Cover Today.

Having worked with both corporates and individuals, our experience as health insurance brokers gives us the benefit of seeing what’s worked and not. We want to offer you the support and guidance you need in planning for the future. Planning and acquiring your insurance needs early will give you peace of mind and assurance! 

Get in touch with our team today to learn how you stay in the pink of health for insurance coverage.