The anticipation is killing you.
Just a few more days to the end of the month.
More importantly, you are just days away from earning your first ever pay cheque in your entire life!
You have mapped out a comprehensive plan to spend your maiden pay.
$300 to Mummy & Daddy.
Set aside $150 for a romantic dinner with your still-schooling girlfriend.
And deposit $200 into your Steam account to buy the latest video games.
There is this little nagging feeling in your gut that you have forgotten something important.
And check again.
Of course, you have to get a present for Grandma’s 78th birthday!!
You add that to the list and recalculate what is left.
Should be enough to last you till the next payday.
Little do you realise that you are leaving yourself vulnerable till then.
Scarcity of the Pay Cheque
Insurance is usually not on the list of must-spend of the first pay cheque.
But it should be.
Granny’s gift is still important.
But insurance needs should definitely take priority over the expensive dinners and pricey video games.
Those can wait till you have filled up your protection needs.
Simply because accidents, injuries and illnesses can strike anytime.
These calamities do not have the patience to wait for you to be prepared.
That is why you should never risk it.
At the same time, we understand that it is impossible to plug all your insurance gaps with the first pay cheque.
Unless you are a rich man’s son or a scholar, your first remuneration is likely to be modest.
Not enough for you to splurge but it suffices to meet your most basic protection needs.
You can take your time to assess your full range of insurance gaps via our Discovery tool.
However, these 3 insurance plans are the bare essential ones that you must get immediately.
And a couple of them do not even require cash.
Medishield Life is a basic hospitalization insurance that every Singaporean has to purchase with their CPF monies.
It is a good thing that everyone is legally compelled to get it as it covers the basic healthcare expenses.
As its intention is to provide the most rudimentary cover, it falls short.
Why is it essential?
Depending on the severity of your ailment, the cost of hospitalization may vary from low hundreds to a million and more.
We can almost see that incredulous look on your face.
It is true – check this out.
Your counterargument is that you can stay in a subsidized ward.
However, there is no guarantee that the government hospital has a bed for you.
Mr Thomas Lukose suffered a heart attack while on duty at Gleneagles Hospital.
His request to be transferred to National Heart Centre Singapore (NHCS) was denied due to the emergency nature of his condition and the lack of beds at NHCS ICU unit.
He had to be operated at Gleneagles Hospital and incurred a bill of $78,000!
That was after the surgeon waived off his fee.
Thankfully for Mr Lukose, the hospital eventually absorbed the bill.
Imagine if the same were to happen to you but the medical institution is not kind enough to waive their charges.
Luckily for you, you do not need to even dish out cash to upgrade your MedishieldLife to an Integrated Plan.
As you are likely young, the cost of upgrading your hospital insurance is still within Medisave Withdrawal Limits.
There is basically no reason for you not to upgrade your shield plan.
Make no excuse. Do the right thing right now.
Critical Illness Plan
We do not just mean the basic Critical Illness plan that covers 37 dread diseases.
It is rather important that you have an Early Critical illness and/or the Multi-pay ones.
What this insurance variant does is to make a payout when you are diagnosed with any of the specified covered illnesses.
This will allow you to have a sum of money to pay for this treatment, feed yourself and offset your daily expenses.
Why is it essential?
Because uninsured women are almost 2.6 times more likely to die of breast cancer than those with coverage.
You are also more likely to survive a heart attack than before.
But mainly because we are telling you to do it.
Dependent Protection Scheme (DPS)
DPS is a simple insurance plan that covers you for death, terminal illness and total permanent disability.
The sum assured is a modest $46,000.
And it is payable with your CPF monies.
Why is it essential?
You are automatically enrolled into DPS scheme when you have a CPF account.
Unless you opt out of it.
Believe it or not, there are a fair amount of people who do that.
Saving money for the rainy day, they say.
It is well intended but poorly executed.
The yearly premium for someone below the age of 34 is only $36!
You can’t buy anything with $36 but you definitely can pay off or make a decent dent on your study loan with the claim payout of $46,000.
Don’t be penny-wise, pound foolish.
Keep them coming!
“Doesn’t my company insurance cover all these?”
You may ask.
Some firms do not cover their new employees through their probation period.
Since you have just received your maiden pay cheque, it is likely you are not insured for at least 2 other months.
That makes it even more crucial that you start your insurance coverage.
These three insurance plans are the barest essentials.
As you continue your budding career, you may want to assess your full insurance needs, plug them and review along the way.
Keep those pay cheques coming.
And have yourself insured from Day One!
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.