Why Buy Insurance?

If you have followed my blog closely, I wrote about some ways of hedging against inflation last week. If you have not read my previous blog posts, you should go ahead and read them all. The reason is simple, it is 100% free and you will definitely be better off than you are right now if you act on my advice.

This week, I am going to touch upon the topic of insurance. As a professional in this field, I get to talk to people from all walks of life. People who own a car, they have to buy car insurance. People who own a house, they have to buy home insurance. People who stay in Singapore, they have to buy a basic hospitalization insurance. These are the defaults, people cannot opt out even if they want to.

Besides the defaults above, a common phenomenon occurs repeatedly. Many people show immense resistance towards personal protection insurance in particular. Majority of the people do not have one. To find out the numbers, you can ask around yourself plus yourself to find out what is the rough percentage of people who do not have a personal protection insurance against critical illnesses, total and permanent disability and death. At least, I was shocked when I found out the percentage.

In my opinion, those who do not have a personal protection plan are living their lives irresponsibly and they are selfish. Why do I think so? The reason is unfortunate events, such as accidental death or critical illnesses, can happen any time, if these unfortunate events strike, not only have they left nothing for the parents, but also they are potentially a burden to their parents. I knew a person who was diagnosed with cancer, and the costs of medical bills wiped out a large portion of his family savings, this person is still under treatment as of now. I knew a person who passed away while traveling overseas, their parents were left with nothing but sorrow and grief.

Nobody wants any of the above to happen to them, as a matter of fact, we cannot prevent unfortunate events from happening, but the questions we should ask ourselves should be “are we ready if unfortunate events strike?” or “what legacy have we left for our loved ones if we are no longer around?”

Now you might be wondering which insurance you should buy then. Usually, higher premiums come with better benefits. My advice is:

  • buy one that is suitable to your needs, NOT the one with the lowest premium
  • take note of what is covered and what is not
  • buy according to your budgets

In conclusion, everyone responsible individual should buy a personal protection insurance. I always think that I will take care of the small bills and I will let my insurance company take care of my big bills. Many a time, it is the big bills which we cannot cope with and end up helpless and hopeless financially. Be responsible and get yourself covered right now. It is not so much about you, it is everything about your loved ones. As usual, feel free to contact me if you wish to know more about the topics I have covered so far.

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