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Sc sg why millennials need insurance x

5 Reasons Why Millennials Need Insurance Now

If you are a millennial, it pays to start planning for your insurance today.

Insurance is not just for the elderly. If you are a millennial, it pays to start planning for your insurance today.

Your twenties are a time for exploration and carefree adventure. They are also a time of increasing responsibilities — both towards your own future, and that of your family. So while your millennial friends may tell you to “live in the moment!” it helps to plan ahead and insure yourself against life’s uncertainties. Here are five reasons why:

1. Rising Healthcare Costs

As a millennial, you may think you still have lots of time to plan and save for future medical and healthcare needs. Yet, the reality is that healthcare costs are on the rise. One way to cope with increasing healthcare costs is to ensure you have insurance so that you are better prepared to handle expensive medical bills should you or your loved ones be struck with an illness or accident that requires hospitalisation or medical treatment.

2. Cheaper and More Coverage

It’s true that the younger and healthier you are, the cheaper your insurance, as it’s about coverage for the long term. Applying for insurance after developing some health conditions may result in you being denied coverage. Moreover, many policies also have a last entry age, after which you may not be able to qualify for coverage.

3. Financial Instability in the Face of Automation

Automation promises economic growth but it also poses a very real threat to many of today’s jobs. Bearing this in mind, it’s always best to be financially secure and prepared for the worst. What if your company replaces your entire department with an automated solution? Will you have enough savings to support your family until you find a new job? The good news is there are savings and investment solutions that cater specifically to your saving goals.

4. An Early Start to Retirement Savings

Sure, since you are still in your twenties or early thirties, you probably feel that retirement is somewhere in the distant future. Yet, you will have to start planning for it eventually, so why not start today? Whether you prefer an active and adventurous life when you are older, or a quiet one playing with your grandchildren, making sure that you can stay financially independent once you retire will give you greater peace of mind. Saving for your golden years also makes more sense when you are younger and less burdened with financial responsibilities like your children’s education or your mortgage.

The earlier you start planning, the better prepared you will be for the unpredictability of life

5. Saving Up for That Home or Holiday

New homes and dream vacations don’t come cheap — they usually require us to spend a decent chunk of hard-earned money. Whether you are looking forward to your next fun-filled vacation, or just want to settle into your new home with a fantastic view, it’s important to get into the habit of saving money. One way of doing this is by setting achievable savings and/or investment targets at the beginning of each year. Once you have met your targets for the year, you can use the remainder of your savings for your annual holiday without feeling guilty. Alternatively, allocate your entire year-end bonus as your savings for the year. Your future self will thank you for thinking ahead.

Now that you are in your twenties and working, spend some time understanding your insurance needs. Then speak to a financial advisor to advise you on savings, protection and investment plans, and how to prioritise and plan ahead.

    

This article is written by Prudential Assurance Company Singapore Pte. Ltd

Disclaimer

This article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration. This article has not been prepared for any particular person or class of persons and it has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person, and does not constitute and should not be construed as investment advice nor an investment recommendation. Where the article describes any insurance product or service, it also does not constitute an offer, recommendation or solicitation of an offer to buy or sell any insurance product or service, nor is it intended to provide insurance or financial advice.  You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product is suitable for you.

Standard Chartered Bank (Singapore) Limited (the “Bank”) will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of the information herein. The Bank makes no representation or warranty of any kind, express, implied or statutory regarding this article or any information contained or referred to in this article. This article is distributed on the express understanding that, whilst the information in it is believed to be reliable, it has not been independently verified by the Bank.

This article is written by Prudential Assurance Company Singapore Pte. Ltd (“Prudential). Certain information in this article may be taken from external sources, which Prudential considers reliable. Prudential does not represent that this information is accurate or complete and should not be relied upon as such.