Whether you’re young, middle-aged, single or married, prudent money management and personal accident insurance planning are of supreme importance. If you’re young, age is on your side and it is all the more important to make sensible financial decisions to improve the latter part of your life with regard to retirement planning. Here are some issues that underline the importance of personal accident insurance planning:
Although personal accident insurance in singapore remain one of the most important aspects of adult life for obvious reasons, it is also one of the most neglected topics even amongst financially literate people in Singapore. That’s because people don’t spend enough time managing personal finances unlike their personal enterprise or business where they need to be accountable to their associates and shareholders while making financial decisions. However, every adult is capable of making substantial improvements in the arena of personal finances, taxes and investments. It is no rocket science that the three cornerstones of any form of personal financial planning are – 1) Early investmentStart Early; 2) Regular Disciplined saving; and 3) Regular investment.
Regardless of whether you’re single by choice or chance (divorce, death, etc), the importance of sound financial planning in Singapore cannot be discounted. There would be times where you’d be left with no choice but to depend on yourself to ensure a regular stream of income and retirement planning. There are certain aspects that deserve more attention than the others:
Budgetary allocation: Budget is the cornerstone of any financial planning as there is simply no possibility of undertaking any financial decision without understanding and ascertaining your own budgetary allocation. That said, there is a widespread myth across the country in that many erroneously mistake budget for a financial constraint, which is certainly not the case. Budget is only going to help you get to where you want to.
Debts: The next most important aspect while making personal accident insurance planning is to take stock of debts. In this context, it is imperative that you know exactly how much money is owed to your creditors and at what interest rate. Without that, your personal accident insurance planning goals can go horribly wrong as there is a great likelihood of an overestimation on liquidity.
Retirement goals: Most of us nurture the notion that retirement is way too far ahead of us, completing ignoring the possible adverse eventualities that may greet us along the way. The fact remains that it is never really too early to start saving for retirement. As a matter of fact, the sooner one starts saving for retirement, the less they would need to save in the long run owing to the principles of compounding. One of the biggest pitfalls in personal accident insurance planning in Singapore is the absence of an employer’s plan, which can help you save money for retirement.
Insurances: A large number of young adults make big financial blinders blunders by not undertaking health insurance because of their ‘young ‘age’. Little does one realize that anybody can fall ill, meet with an accident or get injured, regardless of their age, most of which can get them landed into hospital with big medical bills. More importantly, insurers do not include pre-existing conditions which you may get afflicted with an illness before being adequately covered.
Therefore, it is imperative that you select an insurance plan even if it is less expensive with a large deductible amount.
Depending upon your physical condition, disability insurance, Medicare or long-term insurance can also be looked into. Last but not the least, your home also forms an integral part of personal accident insurance in Singapore.