Amongst the many readers that had emailed us, there are quite a few that raised a similar question.
It is a simple yet difficult query; one that we should try to share with all of you.
“What insurance do I need?”
It is easy to give a genetic all-encompassing answer – something will surely stick.
However, it is also difficult to give a precise answer as everyone is in a different situation.
Today we shall try to provide a comprehensive checklist for you
Everything starts with you.
Take care of your own needs before anything else.
Everyone says that you cannot afford to be sick in Singapore.
They are not entirely wrong – hospitalisation is expensive here.
However, you can help yourself by buying an enhanced Shield plan.
Despite all the positive news about the new CPF Medisihield Life, it does not cover co-insurance, deductibles and has a low yearly limit.
That means that you may be severely impoverished by a long stay in a ward.
Having an enhanced shield will help greatly in that aspect.
Critical Illness (CI)
A shield plan will not be the only health plan that you need.
When a Critical Illness (also known as Dread Disease) strike, covering for just hospitalization will be insufficient.
You may not be able to work if you are battling the sickness
Rent and other running expenses continue to rack up.
Therefore, a lump sum claim from a CI insurance will help to tide you over until you win the battle.
Another huge concern is when you become disabled, either temporary or permanent.
Disability Income Plan will provide you with a replacement income when you are adjusting to your handicap
An example of such policy is Eldershield.
Definitely, such insurance plan will dampen the harsh impact of losing one of your limbs or senses.
A PA plan will be able to compensate a lump sum amount, akin to a CI insurance.
It will certainly aid you to acquire life-improving equipment, such as prosthetic leg, hearing aid or electrical wheelchair.
Hospital Cash is often included into PA plan or Shield plan.
It compensates an agreed amount of money while you are hospitalized.
Not much but every cent will help.
The Other Half
Till death do us part.
Your wedding vow means a lot to you.
Here is how you may do something about it.
If you want your life partner to be able to move on with life without financial difficulties, this is the most efficient plan to show your love.
A bang for dollar insurance plan but do bear in mind that it has no saving component.
It works exactly like a term insurance but with a saving component.
In the likely event that you are able to accompany your spouse for a long time, it may become part of your retirement plan.
Mortgage Insurance (MI)
If you are taking an HDB loan, you will have a form of MI which is named as HPS (Home Protection Scheme).
Otherwise, it is really vital for you to take up one.
It will help to clear some or all of your housing loan so that your other half may not be burdened by it.
Other Loved Ones
In life, we are not restricted to loving our spouse and oneself.
Our heart is bigger than that.
Other people matters to us .
The cloned version of ourselves needs our care but in a different manner.
We need to consider leaving a legacy for them.
Our own parents are another examples.
While they may have their own retirement fund, the Asian values in me make me want to leave them with an amount that enables them to live a little more luxurious.
Endowment may be a safe way of doing so.
Though it may not be the most rewarding plan, it is the safest.
Coupled with a waiver of premium rider, it can provide the funds for your child’s future education, regardless of whether you are around there.
Investment-Linked Policy (ILP)
It is a product that has infused term plan & unit trust together.
If you are savvy in investment products, you may consider it for its potentially superior returns.
However, do take note that your capital is not guaranteed in any manner.
Happily ever after
Now that you have completed your life insurance check, please act on your needs
With a comprehensive backup plan, you shall have no worries at all.
With the spouse happy, family assured and personally covered, you have no other way to go but to have an awesome life.
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.