5 reasons why you shouldn’t delay buying insurance

Most of us know we should get insurance, but many Singaporeans put it off. “I’ll buy when I’m older,” or “I’ll wait until I have kids” are phrases you might have told yourself.

The problem? Delaying insurance doesn’t just leave you unprotected in the meantime, it can actually make coverage more expensive, more limited, or even unavailable later on.

Here’s why waiting to buy insurance could cost you more than you think.

1. Premiums rise with age

Insurance premiums are largely based on your age when you buy. The younger you are, the lower the risk of illness or death – and consequently the lower your premiums.

In fact, for certain types of coverage like hospitalisation or critical illness insurance, premiums can increase by 50–100% within just 10 years of waiting.

Example:

• At age 25, a basic life insurance policy might cost you about S$50 a month.
• Wait until age 35, and the same policy could cost you S$80–S$100 a month.
• By age 45, that could climb to S$150–S$200 a month.

Over the lifetime of the policy, those higher premiums add up to tens of thousands of dollars more.

Bottom line: Buying earlier locks in cheaper rates that stay with you for the duration of your policy.

2. Health conditions can shut the door

When you’re young and healthy, insurance is relatively easy to get. But once you develop a medical condition like high blood pressure, diabetes, or even something as common as asthma, your application could face:

• Exclusions: The insurer agrees to cover you, but excludes claims related to your condition.
• Loadings: You pay a higher premium to account for the extra risk.
• Declines: The insurer refuses to cover you at all.

In Singapore, conditions like cancer, stroke, and heart disease are on the rise. By waiting, you gamble on your future health.

Example: A 35-year-old who develops diabetes may find critical illness coverage difficult or extremely costly to obtain. If they had bought a plan at 25, their diabetes would still be covered under the policy.

3. Protection gaps don’t wait for you

According to the Life Insurance Association (LIA), Singaporeans face a protection gap of S$250 billion in mortality coverage and S$450 billion in critical illness coverage.

That means many families would struggle to cope financially if the main breadwinner were suddenly unable to work. By delaying insurance, you leave yourself exposed to these risks:

• Medical emergencies draining your savings.
• Loss of income from illness or disability.
• Family debt (like mortgage or education loans) falling on your loved ones.

Insurance is about transferring risk. Waiting doesn’t reduce the risk, it just leaves you carrying it alone.

4. The sooner you start, the more flexible your plan

Starting early doesn’t mean you have to buy the “biggest” plan right away. In fact, it often makes sense to:

• Begin with affordable starter policies.
• Add on riders (like early critical illness) later.
• Upgrade to higher coverage as your income grows.

The earlier you start, the more options you have. If you wait until your 40s or 50s, insurers may limit the types of plans or riders you’re eligible for.

5. Peace of mind today, not someday

Beyond the dollars and cents, there’s also the mental relief of knowing you’re protected. Life is unpredictable: accidents, sudden illnesses, and unexpected events happen every day.

Having insurance means you and your family can focus on recovery, not bills, if something goes wrong. That peace of mind is priceless and it’s only available if you’re covered now, not later.

How much should you start with?

If you’re unsure where to begin, start small but start soon. The typical recommendation is:

• Life insurance coverage of about 9–10x your annual income.
• Critical illness coverage of at least 3–5 years of your annual income.
• Hospitalisation coverage through an Integrated Shield Plan.

You can scale up as your needs and budget grow.

Summary

Waiting to buy insurance may feel harmless now, but in reality it can:

• Raise your costs.
• Limit your options.
• Leave your family financially vulnerable.

If you’re healthy and able to start, even with a modest plan, don’t delay. Your future self and your loved ones will thank you for it.