Life Insurance is a necessary tool for financial planning- a sentence that most people have gotten familiar with due to its extensive usage across the internet. Most people who opt for full life insurance do so in order to leave a legacy behind for their families. However, an underrated question that is almost always left unanswered is: What about the singles? Do I need life Insurance if I don’t have a family to leave it behind for?
Once it does catch your attention, you’d realise that this is an important question to ponder upon. Malaysians are increasingly choosing to live the unattached lifestyle. Statistics show that the number of marriages in Malaysia have decreased 1.2 per cent from 206,352 (2018) to 203,821 (2019), and are also speculated to decrease further in the forthcoming years.
Over the span of this quick read, we’ll discover Insurance options and alternatives for the independents!
Let’s get straight to it- Do I need life Insurance if I’m single?
The answer is both yes and no, meaning that it is completely your choice which you should make after developing an informed opinion. Here are few things you should consider before making your choice-
1) You have family/ codependents
Just because you don’t have a wife or kids doesn’t mean you don’t have other family members! If you have a parent or any relatives that you’re close to, you should give a thought to leaving a net of financial security behind for their sake.
Similarly, if you are an entrepreneur, there is another compelling reason for you to consider life insurance despite your marital status. If you have business partners, they also should always have contractual provisions for keeping the business going if one partner should pass away. Your partner may need your life insurance funds to keep the business going.
2) Post mortem Expenses
If you died, who would pay for your funeral? Even a simple ceremony could be costly. If you don’t have life insurance, someone else (e.g., your relatives) may have to foot these bills. Even if you have only a small policy, the death benefits could be used to cover these expenses.
3) You have loans
While some debts might be written off should you die, that is not the case for a lot of private loans! In those cases, your parents or next of kin will have to bear the weight of the loans you left by. So even if you are single, you should assess your financial specifications and check which loans are either existing or in speculation for you. In that case, it is in good sense for you to purchase a life Insurance to ensure that you leave only good memories behind and not a mountain of crushing debt!
What if I change my mind after?
Whichever way you decide to go, there’s a workaround if you decide to change your mind!
In the event where you decide to buy life insurance but find it unnecessary after, you can choose to either surrender or withdraw your life Insurance. In any of those cases, if your life Insurance has met a certain time criteria, you can be eligible for a cash payout. Learn more about surrendering or withdrawing here.
Conversely, should you decide to get life insurance later on in life, that is also a very viable option! No matter what age you decide to get the insurance in, you can consult with your insurer to assess your options of opting for either term or life insurance. Regardless of your age, if you can prove that you are in good health, you might just get a reasonable rate on your premiums!
But I have a lot of savings, do I still need life Insurance?
As long as you’re completely certain that you’ve saved just enough to cover all the expenses mentioned above, you’re good! However, we still recommend you to consult a financial advisor to be 100% sure that should the time come, you don’t leave any financial constraint on anybody you were close to, be it your parents or your business partner.
I don’t want life insurance, is a Medical Card enough?
Boleh la! If you have absolutely made up your mind about not getting life insurance, a comprehensive health care plan can also take care of any major or minor medical expenses. Check out the difference between Medical and Life insurance here!
www.policystreet.com can assist you in getting medical insurance best suited to meet your needs. We offer quotes from leading insurers in Malaysia within seconds! In addition to saving time, you would also be saving a lot of money as you’d be eligible for discounts even bigger than directly from insurers!
Get in touch with our customer assistance team today and get to know how we can help you gain financial security from any unprecedented risks and damages today!