Protecting What Lies Ahead: The Importance of Insurance & How to Give Yourself the Longest Runway Possible

This post was written in collaboration with Etiqa Insurance. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best information in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.

It seems like just yesterday when your main concern was getting a decent PSLE score. Then, when you find the love of your life, the challenges you face will largely depend on your chosen career and whether or not you have kids. Finally, at some point in the future, you might realise that retirement is just around the corner and start worrying that you aren’t adequately prepared.

No matter what your current concerns are, safeguarding yourself against unforeseen situations in life is one thing you should consider at any age, especially if you are a millennial who is described as a new sandwiched generation (in Etiqa’s Protection Survey Report 2021) because of your responsibilities to support 2 generations of dependents, children and the elderly.

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The importance of protection for the sandwiched generation

While millennials may have other financial commitments which may conflict with decisions to purchasing life insurance, they should be aware that they cannot afford not to have adequate insurance for unexpected events, giving their increased responsibility as a sandwiched generation.

Although life might be smooth-sailing right now, we all experience challenges at some point or other. Life protection could be the silver lining that offers financial coverage precisely in those difficult moments, and ensures that the nest egg you’ve built up for retirement or your children’s education fund stays intact even if something were to happen to you.

Cheesy as it sounds, in the event that you pass away early, payouts from an insurance policy will be like a gift of love that continues to look after your family even when you’re gone. For instance, life insurance can ensure that your parents have a retirement nest egg should you unfortunately pass on before them, and can also reduce the hardship on your children and spouse by taking care of their financial needs for the next few decades.

Bridging protection gaps

According to Etiqa’s Protection Survey Report 2021, which polled 815 millennials aged 25 to 40, 1 in 4 of them does not have any form of life insurance protection. This is a growing problem as life expectancy in Singapore increases and healthcare costs rise in tandem.

The study highlights even more on the importance for millennials (born 1981 to 1996), aka the sandwiched generation, to seek adequate protection.

As seen from the study, Millennials’ largest source of financial concern is funding their retirement, with 60% of respondents being concerned about this. Other top concerns include healthcare expenses (54%), funding the expenses of ageing parents (48%) and inability to work due to critical illness (45%).

Ironically, the solution to many of these problems is actually more simple than we thought – to ensure that you receive sufficient protection. For instance, critical illness insurance ensures that your healthcare and living expenses are covered for in the event of a critical illness so that it does not wipe out your entire savings and can offer financial assistance if you are no longer able to work.

Join Etiqa in protecting what lies ahead

https://www.youtube.com/watch?v=swNc9UDDxJo

Inspired by the results of the survey, Etiqa is now running a campaign which aims to help people protect their future, prepare them for longer lives and celebrate the joy of living. Etiqa is a composite insurer licensed by the Monetary Authority of Singapore offering both Life and General insurance solutions.

In order to meet the growing need for protection among millennial Singaporeans, Etiqa offers a range of high quality, holistic protection solutions which is highly customisable according to one’s budget and coverage needs.

Ultimately, most of millennials’ financial concerns are rooted in uncertainty — of not being able to retire, or of leaving their loved ones high and dry if something should happen to them. Etiqa aims to make it easy for them to get the protection they need to truly look forward to the future, no matter what it might bring.

An insurer with the “human touch”

Insurance is not just about selling policies. One often finds out what a human profession insurance really is only when something unfortunate happens and they find themselves leaning on their insurers and financial advisors for support.

A good insurer needs to truly understand the needs and challenges that people face, which is why Etiqa commissions studies like the Protection Survey Report 2021.