According to the 2018 Life Insurance Gap Survey, only 10% of millennials – born between 1981 and 1996 – have life insurance*. If you’re one of the 90% who don’t own one, this means that your family will be left without any financial support should anything were to happen to you.
Ask yourself this: In the event of your demise, will your family have the financial coverage to settle your outstanding debt? Will your partner be able to support the family without your income contribution?
Getting a life insurance can provide your parents, spouse and kids with the financial coverage that they need after your passing. If you’re still not convinced, here are three reasons why you should get life insurance sooner rather than later.
Cheaper when you’re young
A similar study done in 2018 - the 2018 Insurance Barometer Study, also found that 44% of millennials overestimate the price of insurance by up to 5 times the actual price^. In fact, the daily cost of a good life insurance policy can be less than the price of a cup of bubble tea! Life insurance premiums are calculate based on, amongst other factors, your age and your state of health. You pay much less when you’re young and healthy.
Security for your future self
An emergency fund is vital but may not offer sufficient safety net for meeting your financial needs in the event of an emergency. Today, life insurance offers multiple added benefits such as health protection and even wealth creation for your retirement.
Protection for your loved ones
In addition to death coverage, some policies also offer protection against critical illnesses or total permanent disability. These policies can provide financial protection for you and your loved ones through coverage such as income replacement, loan repayments and living expenses.
Even if you don’t have financial dependents yet, as long as you’re planning on starting a family in a few years, getting life insurance now makes more financial sense than putting off the inevitable.
For millennials, especially those with a family or are about to start one, the most far-sighted decision you can make right now is to purchase one. Find out what coverage you can get from our multitude of Legacy Plans. In fact, go one step further and inspire your fellow millennials by sharing this article.
This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy amongst Singaporeans. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve everyone’s well-being. This in turn, achieves CIMB’s purpose of advancing customers and society.
This is intended for general information only, and does not take into account the specific objectives, financial situation or particular needs of any person. The reader may wish to seek advice from a financial adviser before making a commitment to a product.