6 Reasons Why One Should Invest in Pre-need Plans
The Singaporean workforce is one of the highest earning people in the world. This is evident in the significantly high earnings that are reported by the public and private employees. Unfortunately, the first world status of Singapore brings with it high cost of living drawbacks. Prices of basic commodities and services in Singapore are higher than their neighboring countries. Because of the continually escalating costs, the public has found a way of addressing this through pre-need plans. These plans allow citizens to save today for a future need like housing, education, retirement and memorial expenses. Six advantages of pre-need plans are discussed in this article. These justifications are grouped into two: the personal and practical reasons.
Peace of mind. One of the personal reasons associated with obtaining pre-need plans is the fact that having one will give the recipient and his or her family peace of mind. With emphasis on memorial plans, pre-need plans involving casket services singapore will help a family better cope with the loss since the arrangements were already settled prior to the actual death.
Less stress. Another personal justification that has inspired Singaporeans to avail of pre-need plans is the idea that less commotion will be experienced in the future if a pre-need plan is available. For students, less stress will be experienced by their parents regarding university matriculation costs since an educational plan was availed way before the need has arisen. In terms of terminally sick patients, seeking funeral services singapore in advance will help them arrange their desired resting place, thereby giving less stress to their families once the passing is fulfilled.
Assurance. The availability of pre-need plans provides a degree of assurance that a family member can accomplish what he or she desires to fulfill in the future. For parents who are about to retire, a pension plan will guarantee that they would be able to enjoy old age despite the absence of a monthly salary.
Guaranteed growth. As for the practical reasons behind the procurement of pre-need plans, a guaranteed increase in the value of invested money is assured. Unlike other investment plans, the benefits from pre-need plans will surely be achieved by the investor once the maturation time is reached.
Forced savings. Pre-need plans usually require 5 to 20 years prior to maturation. At the same time, monthly or quarterly payment of the plan is required. Consequently, people who are poor at investing or saving will be forced to allot a portion of their savings to the pre-need plan if he or she is determined to achieve the benefits in the future.
Discipline and control. People who purchased pre-need plans have the option of withdrawing from the contract earlier than expected. However, less than 100% of the total invested money can be retrieved in pre-mature termination. Hence, one needs to wait, be patient and practice discipline and financial control in order for him or her to enjoy larger benefits in the future care of the pre-need plans.
It is ideal that the Singaporean workforce invest in pre-need plans. The six reasons mentioned in this article provide concrete justifications regarding the importance of these investment plans.