Should you buy insurance or invest?

Hi anon,

Insurance will be the key consideration first. It is the safety net that will always be there regardless of the market condition.

Insurance will pay you the amount of money you need when you need it.

Had a hospitalization, and covered by a shield plan? Your hospital bill is taken care of.

Out of work due to CI and fighting to recover? Your expenses can be taken care of by your payout.

There are many considerations to take into account when selecting the right policy, including what kind of insurance is important at this life stage, what amount of coverage you need, and what your affordability factor is. Naturally, your health, being good when you are young, is also a key consideration. If you are saddled with health issues, you would probably not be very insurable.

So yes, sort your insurance out first. Make sure you have that safety net. If you never use it, it's not a problem either. No one expects to use the airbag of their car, or the lifevest on an airplane. But if you think about it, which is more expensive, the airbag or the car? Insurance is your plan B you never hope to use, but when push comes to shove, you will be glad you have it.

You should do both. Insurance is for protection, in case something happens to you. Investment is for wealth accumulation, in case nothing happens to you. Don't look at insurance as a saving plan, it's not very efficient.

Impt insurance like whole life plan, hospital amd accident. Min will do. Then whack investment.
Make sure u hav 3 to 6mths of emergency fund :)

Always buy insurance first to cover yourself.

The Singapore Life Insurance Association, a non-profit association, recommends 10 years coverage for Death/TPD and 5 years coverage for Critical Illnesses based on the study of the Singapore population. This coverage is based on your income.

As a tip, if you purchase insurance earlier, you can "lock-in" the premiums as the premiums are cheaper.