A 31 year old. 2 dependants. Wife 28 yr and daughter 8 mnths. Never had insurance before. I dont own a house yet. 2.6k basic and after cpf and personal loan bring hm 1650. Any advise on the best plan?

Hey there!

There are a few things that people typically insure themselves against:

1) Death/Total Permanent Disability

2) Critical Illness

3) Hospitalization Costs

4) Personal Accident

Hospitalization plans are the most fundamental insurance to insure against hefty medical costs. It typically covers admission, surgical costs. Hospital plans can have riders attached to it. Your rider cover deductibles (ward associated costs) and co-insurance (10% of bill less deductibles). Your hospital plan is payable by CPF Medisave while your rider is payable by cash. Do make this a priority. They are typically the same across insurers with a little nuances here and there.

For death/TPD and CI insurance, the product is only as good as your strategy, objectives and budget. The typical method to insure against death/TPD is a Whole Life Plan or a Term Plan. If you are getting a new home, you will need a Term plan to hedge against a liability, ie. in the event of your untimely passing, your wife won't have to tank the mortgage loan herself. Its often nor a either-or but a "which to get first" question to ask.

Term plans are typically highly affordable relative to Whole Life plans and they offer high coverage too. Some people often opt to get a Whole Life plan for lifetime coverage and opt for another term plan subsequently. If thats not within your budget, get a term plan first. Whole Life plans offer lifetime coverage, limited payment with cash value towards your retirement years. That's something you may want to consider if its within your budget.

For CI coverage, you can opt for a multi-pay standalone CI plan if you're getting a term plan OR attach a CI rider to your Whole Life plan. A multi-pay standalone CI plan is generally comprehensive and allows multiple claims. Some even waives off your premiums upon diagnosis of CI to keep the plan in force if you're unable to fund it due to sickness eg. AIA Power Critical Cover.

Do note that for your CI rider to Whole Life plan, it will generally reduce your death benefit by default since they are Accelerating CI riders unless you opt for Additional Riders. But this is usually quite pricey.

Personal accident plans are the last you can look at. They pretty much cover for accidental deaths, dismemberments, burns etc. Some also provide TCM/Chiropracter reimbursements eg AIA Solitaire PA.

Do consult a licensed financial advisor to look at options and whats within your budget and objectives. All the best!

Financial planning is an integral part of life. You can reach me here to find out more.

Hi there,

Firstly, congratulations on becoming a father! It will be a challenging time for yourself, especially if you currently have no insurance done up personally.

Based on the information you have given, these are some of the priorities you will need to look into:

1. Hospitalisation Insurance for both you, your spouse and your child.

2. Personal accident insurance, for coverage outpatient expenses relating to accidents and infectious diseases.

3. Life insurance for you and your spouse, to ensure that in the event of any unforseen circumstance, your family is taken care of.

Based on your annual income, you should look for an insurer which can offer you a good coverage to price ratio, to ensure affordability on your end moving forward. Taking on insurance should not be a burden for yourself.

Currently based on your annual income, you might need to opt for term coverage to keep costs to a minimal now. At the end of the day, the best plan needs to work in tandem with a good company, to ensure your immediate needs are met.

Do create a contact request and we can take it offline, and try and propose a solution that will fit your family's needs. Our solutions are one of the most affordable in the market. Would need to know more details before any recommendations are made.

Hope i was able to shed some insight!