Everyone can use a proper financial review.
Having a professional planner to give a second opinion on your finances can be beneficial, regardless whether you are Tony Starks or a man on the street.
You can choose not to take up his recommendations but most of the time, you are likely to find certain blind spots that you have previously failed to notice.
Having said so, some may think that they do not need financial planning.
The reasons can be just about anything – lack of time, no money, self-confidence in own finances or even plain old bochup.
Whatever reasons you may have, we are not here to judge.
You may not be ready to meet a financial consultant for proper planning but the very least you can do is to keep yourself minimally protected.
The barest minimum – an Integrated Shield plan.
There is merely a 1% chance that you will land in hospital in a single year.
However, you are running that 1% risk for an expected 80+ years.
Therefore, there is a high chance that you will enjoy the facilities of a hospital at least once in your lifetime.
As MOH has discontinued its practice of publishing average hospital bill since 2015, we take the bill size of a common injury as an example – uncomplicated fracture of joints (including arm, leg and ankle) that require a surgery.
A stay in a government restructured hospital A Ward will cost you anywhere between $8,478 and $13,507.
Now that you know how likely you will be hospitalized and how much it will cost, this is one financial gap that you just simply have to cover.
Yet the mandatory Medishield Life is not your answer.
At the very least, get an Integrated Shield to stay minimally protected.
Don’t opt out of DPS.
At Clearlysurely.com, we are realists.
We don’t believe that everyone can own an HDB flat as long as they earn at least $1,000.
That is why we also believe that not everyone can afford insurance.
When you are bringing home $600 after CPF deduction, a choice between three meals a day and insurance isn’t a choice at all.
Most of us can afford life insurance thankfully.
For the small group that cannot, the next best thing is to do nothing.
Yes, you heard us right.
Dependent Protection Scheme (DPS) is a national term insurance scheme that is payable via your CPF account.
Since you cannot touch your CPF monies till retirement, the current financial burden of having DPS is practically zero.
For the small group of people who really have no spare cash, DPS can be a godsend to their dependents if anything untoward happens.
Get what you can afford first & upgrade when you can.
Besides the abovementioned group, there are some whose budgets just run a little short.
When you run a typical insurance gap calculator, you are presented with a whole load of insurance products that you must buy.
All at the same time.
However, insurance is not about all or nothing.
You can actually prioritize and purchase, according to your budget and needs.
Your problem is differentiating which coverage gaps are the most pressing.
We understand that and build our Robo-advisor in a manner that you will know which insurance policies should be bought first.
We have also taken the trouble to explain to you why.
Give it a go and build up your protection slowly as your financial position improves.
A proper financial planning is still your best solution
What we have suggested is the minimum – the bottom of the barrel.
It is useful in certain situations whereby you are not in a position for a proper financial planning process.
We are definitely not advocating these measures as long-term solutions.
Circumstances change over time.
Whatever your reasons are, they may alter.
When that happens, be sure you sit down and plan properly for your future instead of staying with the bare minimum.
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.