In an ideal situation, the level of coverage that you need should be an amount that you can comfortably afford. If that’s the case for you, then great! Ensure you are adequately insured.
However, we all have to live within the constraints of a budget – usually our take-home pay. The insurance premiums for the coverage that you need today may be much higher than what you are comfortably able to afford.
If this situation arises, it doesn’t mean you should simply drop the whole insurance planning exercise, nor does it mean you should drop important financial commitments already in your life.
Rather, try to calculate an amount that you are comfortable with paying, and work out with a trusted financial advisor to receive an optimised coverage level within this budget.
While it may not be adequate to get you fully insured, it ensures, at the very least, that you cover your basic insurance needs for yourself and your loved ones. You should then work at reducing or minimising financial commitments that are less important. Any savings from this exercise could go into adequately insuring you and your loved ones.
Insurance, after all, is about lowering your risk areas in life, and not completely eliminating them, or worse increasing your risks by stretching your finances to its limits.
If you want to reduce the cost of your insurance, you can also consider joining AIA Vitality. AIA Vitality enables you to enjoy up to 15% in premium discount on your insurance premiums, as well as many other discounts and benefits when you make healthier choices in life.