National service (NS) can be challenging. You need to adapt to a new environment and military way of life while assuming new financial responsibilities such as paying your bills and your lifestyle needs.
Some young adults delay getting their first coverage as they find few reasons to be insured. After all, when we are young, it is easy to feel invincible. Moreover, they may not have any dependants yet and hence, are unable to see the full benefits of having insurance policies. Insurance is also complex and appear daunting to many people.
However, no one has a crystal ball that can tell when illnesses or accidents may strike. Health conditions can develop anytime so you should not neglect the importance of having insurance.
A sound financial plan includes insurance planning as a key foundation. In fact, NS is often the best time for you to start getting coverage and here are some reasons why you should get started!
Peak of your health
Most males enlist for NS between ages 19 and 21. This is the period when most are in the pink of health due to their youth and fitness conditioning during NS. So you are likely to be at your healthiest and fittest with few or no pre-existing conditions, hence you could be fully insured without any issues.
Lower insurance premiums
Insurance premiums increase with age as the risk of developing medical conditions increases when you are older. Those who are more senior have much higher risk of developing severe illnesses as well.
Your insurance premiums will be significantly higher if you choose to get insured in your 30s and 40s as compared to being in NS now. Hence, getting insurance early while you are younger and healthier allows you to pay lower premiums and helps you save more.
Future is unknown
You may feel like you are in the best of health now but any adverse events can happen. If health conditions develop before you purchase your insurance plans, you may face exclusions in your coverage from your pre-existing conditions or the insurers may impose higher premiums on your policy due to a higher risk of you developing a recurring or related health issue. It also helps to get insured early because if you do not apply before serious health conditions surface, insurers may exclude you from getting coverage entirely.
Financial security for your family
Accidents can occur when one least expects. In a serious accident, it could lead to temporary or permanent disability. This could severely disrupt your future potential income.
You may need to hire a caregiver such as a domestic helper to care for you. Alternatively, even with a family member that can provide care, he or she is likely required to stop work, which results in a loss of income as well. Hence, having insurance can help reduce the financial burden on your family and you.
In the unfortunate scenario that death occurs, the loss of your income and funeral expenses may pose a financial strain on your loved ones. If you have debts such as housing and student loans, your family may be liable for the outstanding amounts if they have signed up as your guarantor or co-signed these loans with you. With sufficient insurance coverage, the payout that helps your loved ones to cover these expenses and outstanding debts.
Research requires time
With so many types of insurance products available, you will need time to learn, compare, and decide which insurance policies are suitable for you. You would also need to assess the amount of coverage you need and your budget.
Over the course of NS, you may find some pockets of downtime, so make use of this valuable opportunity to plan for your insurance needs and pick up personal finance knowledge. This is a lifelong skill that your future self will thank you for!
Ready to take the next step and learn more? Read our next piece on types of insurance products that you should consider as an NSF.
