In a previous post, I shared with you that I purchased my first insurance policy while I was only 23.
Too young to be preparing for death, you might think.
But can we ever predict our last day on earth?
If I die, at least I left some clean up fund for my parents to use. It can be used to pay for the memorial service, burial expenses, and medical expenses, if any. They don’t need to withdraw something from their retirement fund.
My parents worked long and hard to give me food, shelter, clothes, and a good education for two decades.
Do I have to make them pay for my burial expenses as well when I am very much capable of saving up for it myself?
The last thing I want is burden my parents with unexpected expenses, all because of a misguided belief that I’m too young to die.
That’s my big WHY.
But there are more reasons to get insured why you are still single.
Many singles who are also the sole breadwinner of the family, find it hard to set aside money for a life insurance plan.
Believe me, I can understand the budget constraints. But it is still not a good excuse.
Loved ones depend on you for their basic needs. How on earth will they cope up if you’re suddenly taken out of the picture and there’s no money left to sustain them?
If you think you are working yourself to death already, but you still end up living from paycheck to paycheck, it’s time to review where your money is going. You might discover that you are overspending on something not too important like coffee, cellphone load, gadgets, fashion items, make up, bags.
If you went out of your way to seek help from a Financial Advisor only to find out that you can’t afford what the Advisor has offered you, don’t be discouraged. Ask around for other products that you can afford.
My personal stand on this is that it’s better for someone to be underinsured than to have no insurance coverage at all.
If the Advisor still insist on the amount and product presented to you, look for another one who will focus on your needs and work around your budget.
But be very honest about the numbers that you will provide.
If you give the Advisor a small budget for insurance and then spend more on Piso fares and gadgets, you are not just fooling your Advisor; you are compromising the needs of your dependents!
The Younger, The Cheaper
This applies to singles who are under their 30s.
Always remember that insurance premium increases with age. The younger you start, the cheaper the price. If you are wise in choosing a product, you could be done paying off your policy in ten years time.
More Responsibilities, More Bills to Pay
If you are complaining already on how to make ends meet while you are still single, then don’t expect for smoother ride when you have your own family to think of.
If you bought an insurance policy early when expenses are more manageable and premium cost was cheaper, you have a better chance of paying for the premium even if you have additional bills to manage. If the payment period is for 5 or 10 years only, chances are, your policy will be fully paid by the time you get married and start a family.
Insurance Linked to an Investment
What I bought was a traditional plan, meaning it wasn’t linked yet to an investment instrument, similar to what is popularly being sold now, the VUL plans.
But now, this product is widely available. Not only does it cover your basic protection needs, it also allows you to set aside funds for your future goals like your wedding, dream travel, down-payment for your first car or house, or even your retirement.
Like paying for your insurance plan, it takes more effort to save on these goals when you have your own family already.
Millenials are lucky that VUL products are available now to cater two needs: protection and investments. The product is there, all you have to do is take advantage of it while budget isn’t so tight yet, and while you have the time.
If you are single and without any dependents relying on you, but you owe money from a family member, a friend, or a creditor, then you need a life insurance.
Do not pass on the burden of paying off your debts to your parents or your siblings when you die suddenly. Don’t be so cruel.
If you are single and planning to buy your own place through a housing loan via bank financing, a life insurance plan will come in handy. When you take out a housing loan, the bank will require you to buy a mortgage redemption insurance (MRI). If you have your own life insurance plan and the amount is sufficient to cover the loan amount, then you can use your existing plan for the MRI.
If any of the above scenarios apply to you, then being young and single does not exempt you from getting your own life insurance plan.
Now is the season for Christmas bonuses and 13th Month Pay. While it is very tempting to spend your bonuses on spoiling yourself with the latest smartphone, a nice dress, or a trip to the beach with friends, why not save a small portion of your Christmas bonus to pay yourself by way of a starter insurance plan?
Talk to an insurance agent or a Financial Advisor today and discuss your options while you have the resources.