I had bad impression about insurance and very bad impression about insurance agents. That was because in my younger years, my father told me that 'do not trust insurance or insurance agents. they promised thousand of things but when there really is something happened, you can't find them.' My father said that because he had some bad experience with insurance industry.
When I started to work in early 2000s, I done some reading and own research on insurance. I also discussed and talked to colleagues and friends about insurance. My elder brother has a few friends working in insurance industry and they also helped me a lot to understand more about insurance.
About 1 year later, I bought my first insurance policy, Prudential Prulink Assurance Plan, a plan which provide both protection and investment to its policy holders.
Why I signed up? These are the reasons:
1) For my own protection
When I started working for the first few years, I was thinking, if I suddenly had serious illness or involved in accident and not able to work and earn income, what will happened to me? Will I have enough saving for the treatment and those health related matter? Will I trouble my parents and family for that? Sometimes, these thought made me not able to sleep at night. If I have an insurance policy, at least I am covered for the illness and there are financial support for the expensive treatment.
2) For my saving
During that time I didn't have much commitment, but I just don't know where does my money goes too. So, with insurance, I forced myself to save a few hundred every month to pay insurance premium. At least, when I received my yearly account statement, I know where my money goes too.
3) For my investment
For my Prudential Prulink investment account, partial of my premium will be invested in selected funds. My insurance consultant advised me to first invest in equity fund because he said I was still very young and I have plenty of time. Few years later, his assistant advised me to switch some of the equity fund to bond fund due to slower market. I didnt' regret listened to his advise. So far the return from both prulink bond and prulink equity funds are very impressive.
4) For my retirement
With the hope that everything goes well and I didn't make any claims or withdrawal from Prudential, when I reach 60 years old, I will have additional cash from the investment for my retirement fund.
5) For my future
When I learned that the premium increase with the age, I know that I must have an insurance coverage as early as possible. I don't want to wait till I have a family or other commitment because by then, the premium would be very high and insurance company had the right to reject applications with health problem.
Among all the above, the main reason is still the first reason, for protection. In case of any accidents or serious illness happened, there will be financial support for myself and my family members. Will the increasing price in health care industry, it is wise to have an appropriate insurance coverage for oneself, as early as possible.