Why insurance matters more in uncertain times

When times get tough, people instinctively cut back. Dining out, travel, new gadgets – all these get trimmed from our budgets.

For many, insurance might seem like another non-essential. But here’s the truth: the best time to get insured isn’t when everything is going well. It’s when you don’t know what’s coming next.

If you’ve been thinking about getting insurance but holding back because of the economy, here’s why now is still the right time to act.

1. Financial safety nets matter more during downturns

In good times, unexpected costs are easier to absorb. A hospital bill, a car accident, or even a house fire, while always painful, might be manageable if you have a steady job, healthy savings, or access to credit.

But during economic slowdowns, these cushions shrink. Jobs are less secure, income may drop, and markets can be volatile. If an emergency strikes when you’re already financially strained, it could push you into serious debt – or worse, bankruptcy. Insurance protects against that. It transforms unpredictable, potentially devastating costs into manageable, planned expenses.

2. Emergencies don’t wait for a good time

Nobody plans to fall sick or get into an accident. But if, and when, it does, the bills in Singapore can stack up fast.

Depending on your condition, a few days in a hospital could cost you in the thousands, or even tens of thousands. Even if you’re relying on Medisave or MediShield Life, you’ll likely face out-of-pocket costs for things like surgery, long-term treatment, or higher-tier care.

Buying health or critical illness insurance now ensures that you’re protected before anything happens. Because once you’re diagnosed, it may be too late to get covered or your premiums could go way

3. Life insurance protects your loved ones and gives you peace of mind

If you have people depending on you, whether it’s your spouse, children, or elderly parents, life insurance can help keep their lives stable if something happens to you.

It’s not just about paying for funerals or final expenses. It’s about making sure your family can still pay the mortgage, cover daily living costs, or fund your child’s education.

During economic uncertainty, families are often on tighter budgets. Life insurance becomes even more valuable because it provides a financial safety net when there’s little room for unexpected loss.

4. The younger and healthier you are, the cheaper it is

One major advantage of buying insurance early is cost. In Singapore, premiums for life and health insurance generally go up as you age. If you wait until you’re older or until your health changes, you might face much higher costs or even be rejected.

Getting insured now means locking in a lower premium while you’re still young and healthy. You’ll thank yourself later.

5. Insurance is not a luxury, it’s a plan

Many people think of insurance as something “nice to have” when you can afford it.

But it’s actually the opposite: insurance is what helps you afford the unexpected.

Think of it like this: when you buy insurance, you’re making a smart, fixed investment to prevent one surprise event from wiping out years of savings.

Especially in an unpredictable economy, insurance turns uncertainty into something you can plan for.

6. Peace of mind is a hidden asset

In times of financial stress, anxiety runs high. The fear of “what if” can weigh heavily especially if you have children, elderly parents, or employees depending on you.

Having the right insurance coverage provides something money alone can’t buy: peace of mind. You can focus on adapting to economic changes and making smart long-term decisions, knowing that a medical emergency, accident, or unexpected death won’t upend everything you’ve worked for.

Start small, just don’t wait too long

You don’t have to go all in at once. Start with basic coverage:

• Hospitalisation insurance (Integrated Shield Plan)
• A term life policy if you have dependents
• Critical illness protection if you’re the main income earner

As your financial situation improves, you can build on this foundation.

Waiting for the “perfect time” to buy insurance is risky because life doesn’t always wait. Buying insurance now is not about fear. It’s about being prepared, protecting your future, and giving yourself peace of mind, especially when things around you feel uncertain.

Take small steps. Ask questions. Talk to a trusted financial representative. But most importantly: don’t put it off. Your future self will be glad you acted today.