Is it better value to pay for extra insurance coverage (that I don’t require) now when I’m younger to ‘lock in’ a cheaper premium compared to waiting few years more (when I need extra coverage)?

Hi Anon,

As mentioned by everyone here, insurance is really not for the now. What you mention about the ’lock in’ is true, because premiums is affected by age, but the next thing to think about is also whether we have the means for it now, cause we shouldn’t be stretched too thin.

Of course we could get more coverage in future by maybe purchasing term plans, as these plans are usually cheaper and also provide bigger amount coverages for CI, so it is best to review through what you have to get a better idea on what you need (gaps)

We never buy any type of insurance coverage because we need it today. Instead, we need to have the ability to envision our future and make comprehensive planning based on it. For instance, some of the goals that I have is to buy a car in 2 years' time, a house in 3 years time, and so on.

Based on these goals, we work backwards to understand whether we should buy insurance coverage today or if it is worth to delay it till a later stage. All these require in-depth calculations as everyone's goals are different.

With this in mind, if you choose to get insurance coverage today but is unwilling to pay a high premium for it, then consider a convertible term insurance policy. This way, you are guaranteed the option to convert it into a proper whole life insurance policy in the future. Here is some info: https://www.blog.pzl.sg/types-of-term-insurance...

In summary, have a clear picture of what you want and how your future will be like. Yes, it is tough to envision all these. This is where you should sit down on your own or talk to a professional that is able to guide you through all these planning in life.

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