Life is full of unpredicted and unprecedented events and you must be prepared to tackle such situations. But no matter how much you prepare yourself, you will be affected to some extent. In such a situation, when your financial problems are taken care of, things become a little easy for you. Thus, an insurance is a must.
Nothing should be more important than your life. So, an insurance policy for your life is of utmost importance. It provides you with the coverage that you need and deserve. Maybe, the organisation you work for already provides you with a life insurance scheme. Still, you must consider availing a private policy for yourself.
There is an old saying, never have all of your eggs in one basket. This fact is absolutely correct when it comes to life insurance.
Most people think that they do not need a life insurance policy as their organisation offers them one already. Most of the policies that are offered by the by the employers are not always enough to provide the coverage amount that you need. Maybe, your employer gives an insurance policy which gives you a coverage of SGD 50,000 or SGD 100,000. This may not be enough for your needs. If you have a family, may be your requirement is of SGD 500,000.
Some of the organisations also have the option of going for the supplementary coverage. For this, you will have to the pay the premiums on your own. This might sound like a good plan to you. However, you are still keeping all the eggs in the same basket.
What Happens When You Lose The Job That You Have?
You love your job and wish to hang on to it forever. But it is pretty much possible that things do not turn out to be as you planned. You might lose your job under different circumstances. So, you must also understand that there will be times in your life that will be without a job. This is extremely common during recessions. Thus, if you only have one insurance policy offered by your employer, and you don’t have the job, you will find that you are leading a life without a life insurance.
Even if you quit your current job, then also you will be in a similar situation. Either way, you will not have any life insurance coverage protecting you.
What Happens When You Have A Health Condition Even Before You Lose Job?
It is actually a good idea to buy a life insurance policy while you are fit and healthy. In case, you have a health condition and then you also lose the job, then you might just lose out on the entire option of purchasing a life insurance policy.
It might be absolutely impossible to avail a life insurance policy if you are diagnosed with certain health conditions. The chances of you availing a good life insurance policy worsen if you have a fairly recent health condition. Let us consider that in such conditions too, you get a life insurance policy. But it will come will a premium that is risk adjusted. This factor will make the whole affair all the more costly for you.
Keep Your Employer’s Life Insurance Policy But Get a Private One For Yourself Too!
If it definitely the right thing to do to keep the life insurance policy that you have been offered by the organisation that you work for. It will be even more beneficial for you as you will not have to pay for it. Additionally, purchase a third party policy for yourself which provides you with a good coverage.
Disclaimer: This blog is solely for the purpose of creating general awareness about financial products and services available through banks/ other financial institutions in Singapore. For more details, please consult your financial adviser before purchasing.
This article first appeared on Bankbazaar.sg
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