Why Are People Not Purchasing Life Insurance?

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If you were offered a life insurance policy at a good premium, would you take it? Okay, you need to think about it? Seriously? Just take it already!

Many of you may not be very interested in an insurance policy as you will not be the last beneficiary of the policy’s features. Other forms of insurance policies such as auto insurance or health insurance will help you when you are in need. Or, you may think you do not need a life insurance policy because you are healthy and young. Well, you are wrong, my friend. You might want to reconsider your opinion about insurance after you read this article.

Life insurance will enable you to save your funds and also keep your family financially secure when you experience something drastic such as death or permanent disability. It extends multiple benefits – it insures your life against accidental death and disablement, helps augment your savings or retirement funds, and can serve as an investment tool. It all depends on the type of life insurance you choose. There really is no reason why you should stay away from insurance.

Related: You Have a Life Insurance Policy Through Work. But is that Enough?

4 reasons for not buying life insurance

Let us try to understand why people here in Singapore do not go for life insurance:

1. It’s expensive

Many of you may avoid life insurance policies as you think they are too expensive. We agree that some insurance policies do come with very high premiums. However, with a little bit of research, you will be able to find a decently priced policy. When you pay these premiums on a monthly basis, it doesn’t feel so painful.

And if you use your HSBC Revolution Card to pay for your premiums online, you can get 5x Rewards for it! Check your eligibility and apply for the HSBC Revolution Card here.

2. Other investments provide better returns

You prefer to invest in other financial plans such as mutual funds, stocks, and bonds. Some of you may not even consider insurance as a savings instrument. Believe it or not, life insurance can give you returns and also give you protection for your life. Do you think investments such as fixed deposits or home loans will help your family when you are not here? Exactly, they won’t.

Related: 7 Reasons Why Millennials Need Insurance

3. The returns of this investment are not visible

You may have invested your money in a bank deposit or in the equity markets and you can see the performance of these investments easily. You can observe how they grow at regular intervals of time. But the returns from a life insurance plan is not always immediately obvious. However, this particular feature should not deter you from a life insurance product, because you can always check the accumulated benefits on your plan if you just log in to the insurance company’s website. You just need to ensure that the insurer has a transparent process of declaring returns before you buy a policy from them.

4. Don’t understand it

Many of you may think that life insurance is very tough to understand. You may not know how insurance works or you may think that the terms and conditions of a policy are very confusing. Sometimes even the features can get confusing. We agree that the concept of life insurance is quite complex at the beginning. But once you read the terms and conditions of different policies, or ask the right questions to your financial consultant, you will you will be able to choose one depending on your specific preferences.

Related: Do You Need Health Insurance, Even with MediShield Life?

Do you really want to avoid life insurance because of these above-mentioned reasons? It is time you change your mind and start looking for a reliable insurance policy. You can stick to your specific requirements and financial goals when you are looking for one. However, please do take a policy at least for the future of your loved ones.

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