When should Young Adults Start Insuring Themselves?

 “What? Insurance? I’m not interested!!!”… OR

“I’m still young, don’t think I need any insurance coverage!!!”… OR

“I’m just graduated and get into this first job, I don’t have much money for insurance!!!”… OR some even with

“I don’t believe in insurance!!!”… etc.

Do they sound familiar? They are very common responses from people especially youngsters when they are asked to plan for their insurance coverage. They do not feel that planning for insurance is important at their “young” age because they are still young. So, when is the best timing to start planning for insurance coverage as a youngster?

Before joining this industry, I never think of getting an insurance products for myself, especially those with protection elements because of those common reasons which everyone can think of. I’m still young, what should I? I don’t even have enough to feed myself, how can I? All kinds of reasons appeared in my mind too, just like you.

However, when I first joined as a financial consultant, I slowly changed my mind from NO to YES. From a “100% NO to Insurance”; to “Savings Products seem better than keeping all my monies at a bank”; to “Savings with some Protection elements at the same time is better”; to “100% Protection first then followed by other products” currently. What are the reasons that changed my mind along these years?

Do allow me to relate such planning to the major life stages with some “valid reasons” which make us to procrastinate our FIRST insurance planning:

Life stages:

  1. Start working – lower starting pay, enjoy first, buy “wants”…
  2. Dating – common expenses like meals, movie, holiday…
  3. Applying BTO – down payment, stamp duty, renovation, furniture…
  4. Before marriage – planning for a grand wedding bouquet…
  5. After marriage – honeymoon period, travel more, house expenses…
  6. Conceiving – expenses on check-ups before delivery & hospitals…
  7. Become a parent – more expenses on kids like medical & planning for their education…
  8. Middle age – kids pursuing tertiary education, aged parents, own health status, start worrying about retirement due to high inflation and shorter time to save…
  9. Retirement – exceed the maximum entry age for most of the insurance products, super high premium and may be excluded for some conditions due to existing health status if still eligible for certain products…
  10. Before pass away – ill health, more check-ups, higher medical expenses…
  11. After pass away – estate duty or creditor if any, high bills for next generation to repay…

The list seems long, thus do allow me once again to summarise the long list to a shorter form:

When to save?

  • Age 25:
    • We are young and just starting out
    • We don’t make much money yet
  • Age 35:
    • Our mortgage and family bill take all of our pay checks
    • We can’t afford to save anything
  • Age 45:
    • We can’t save now as kids are in college
  • Age 55:
    • It’s not easy to start at our age
  • Age 65:
    • We should have started long time ago but it’s too late now

Even with so many reasons to say a NO to insurance planning, yet it is a MUST to say YES to your first insurance planning when you are still young, why???


  1. Start younger to enjoy lower premium
  2. Start earlier when you are healthy
  3. Start faster to have more years to save means lower monthly burden and longer time to accumulate wealth
  4. Start before marriage so that to reduce commitment when you have a family
  5. Protect yourself before saving so much
  6. Imagine when you are ill, how do your loved one feel? Especially when your family background is not wealthy and they have to bear tons of your medical expenses

Apart from the above-mentioned reasons, there is a very common phenomenon like increased numbers of retiree who self-extending their retirement age due to shortage of savings in either their CPF accounts or own retirement savings. Even Singapore government has implemented a very good “forced-savings” scheme, but due to withdrawal of CPF-OA for purchase of HDB, at the same time reducing the balance in CPF and concurrently reducing the balances in CPF account. Not only down payment for HDB, some even using their CPF-OA to repay the monthly housing loan. It means the accumulation is getting lesser and lesser, or even nearly to zero if the loan amount is big enough.

In a nutshell, it’s either you choose to enjoy now but work later or work harder now to enjoy your life during retirement age. Time waits for no man, quickly contact us for your FIRST insurance planning NOW!!!

Personal Accident: Painful yet Meaningful Experience

Learning can be a painful yet meaningful experience. Growing up as a rebellious adolescent, gave me an opportunity to be a wiser person. I met with an accident not long after I turned 19.  I had just received my motorcycle licence then and was aggressive on the road. The total bills for my motorcycle repairs and hospital bills were enormous! Luckily, my parents were able to assist me financially during that difficult moment.

Years went by after the accident and it was like a dejavu when one of my friends got into a similar situation when a car crashed into his motorcycle. He was shocked and petrified that he could not digest what had happened. I offered my assistance by doing the administrative portion of reporting and claiming against the car while he focused on his recovery.

The two incidents made me realise how important to have an insurance coverage and to have a wise person to assist you during that difficult point of time.

Today, I am that wise person and I call myself a Financial Consultant. The past experience has equipped me with the understanding on how to handle such a situation. Choosing a career as a Financial Consultant enables me to help those in need. In addition, it also allows me to plan for my client financial needs during the different stages of their lives through different tools such as insurance, savings and investments.

Most Singaporeans today do not have a proper financial planning and require assistance to do so. A well prepared financial planning coupled by a wise Financial Consultant will reduce the burden when there is an unforeseen event. A professional Financial Consultant will plan and stay with you for all those special and important events of your live such as your wedding day, the birth of your child and even when you retire!

It’s not how much money you make but how much money you keep, how hard it works for you and how many generations you keep it for. (Quote by Robert Kiyosaki)

8 Important Things Everyone Should Know About Insurance

What are the benefits of getting an investment related insurance? Isn’t it better to get it compared to an ordinary insurance as there may be better returns in the long term?

Firstly, an insurance plan is for the purpose of income protection, not so much for returns. For protection, there are 3 kinds of insurance plans: term, whole life, and investment-linked.

A term plan provides protection only, with no cash value. In terms of cost, it is usually the lowest. A whole life plan and investment-linked plan are protection plans with cash value. The advantage of whole life plans is that it provides a cash value that is guaranteed when bonuses are declared i.e. the money is there when you need it. An investment-linked plan does not have such a guarantee as the cash value is linked to the underlying funds. In other words, in times of financial crises, the cash value may be lower than that of a whole life plan.

The benefit of getting an investment-linked plan therefore should not be about the potential returns. Instead, its advantages lie in the flexibility it provides to the policyholder, for example, flexibility to make withdrawals and top-ups, flexibility to increase or decrease premium payments, flexibility to go on premium holidays and even to change the life insured.

Conversely, a whole life plan is much more rigid. While you can borrow from your policy (called taking a policy loan), you will be charged interest that needs to be paid back one way or another. It is not the same for an investment-linked plan.

In conclusion, these are the three points to remember:

1) Insurance plans is about the protection, not the returns;

2) Whole life plans provide cash values that are guaranteed when declared, investment-linked plans have no guarantees except on claims;

3) The main benefits of Investment-linked plans are the flexibility they have compared to the more rigid whole life plans.

Financial 101

Life turns on a dime. You have no idea when you’ll “need” insurance. That’s why it’s important to plan ahead. This information will help you figure out what types of insurance make sense for you.

Life insurance is a simple answer to a very difficult question: How will my family manage financially when I die?

It’s a subject no one really wants to think about. But if someone depends on you financially, it’s one you cannot avoid. In the event of a tragedy, life insurance proceeds can able to:

  • Pay for funeral costs
  • Pay the bills and meet ongoing living expenses
  • Pay off outstanding debt, including credit cards and the mortgage
  • Continue a family business
  • Finance future needs like your children’s education
  • Protect a spouse’s retirement plans

In this section, you’ll find information and interactive tools to help you to get a sense of how much and what kind of insurance products to buy, plus the information about how different life events — such as having children or buying a home, etc — can affect your insurance needs.

If you’re ready to consider purchasing, there’s advice for finding and working with an agent, and an agent locator search engine is able to help you to find a qualified insurance professional in your area.