Why Do I Need Insurance?

Would you go out in the rain without an umbrella? Most of us wouldn’t.
Would you buy Toto/4D despite the small chance of winning? Most of us would.
In the middle of that admittedly weird venn diagram lies insurance. Basically, it boils down to buying an umbrella in the off chance that it will rain. That is the essence of insurance. 
Insurance has many uses. It can protect your savings, it can ensure your loved ones never have to worry and it gives you a sense of security. 
In Singapore, we can categorise the insurances into two broad categories. Those on a reimbursement basis, and those on a payout basis. Accident and Hospital Plans often work on an reimbursement basis wherein they will cover any bills stemming from a hospital visit or even an accident. Term and Life plans often work on a payout basis, where they pay out a large sum of money in the event of any major life related disaster (e.g, death, disability and critical illnesses). 
At this point, most will be confused as to what kinds of insurance they need to purchase. To keep it brief, the most bang for your buck policies to have are your accident and hospital plans. “Aiya, got insurance can claim one” is a common phrase you will hear when you start to adult and that’s where the accident and hospital plans shine. 
In order to find out what else you require, you can always speak to a trusted financial adviser. If you don’t already have one, you can always click here to drop me a text to begin the conversation!