Am i sufficiently covered? I'm 30m. Married with No kids. Housing loan - 615k Income - 70k each for hb n wife. Coverage - 1m Death 100k Multi Claim Pte Hospital Coverage Am i sufficiently cover?

Healthcare Insurance

To begin with, let's look into your healthcare insurance coverage. Generally, I will suggest clients to consider having the rider add on. This is so as to reduce the cash outlay in the event of a hospitalisation. Hence, you may wish to check and confirm your coverage as well.

More Details: Should I buy Rider for Integrated Shield Plan in Singapore

Basic Life Insurance

Next, we will need to find out whether your family depends on your income, e.g. spouse, parents. If yes, then we need to evaluate whether $1mil life cover is sufficient. To illustrate, your estate will be left with about $400k after paying off mortgage. In other words, that's about $40k annually for a decade, or about $3k monthly. Accordingly, is this a sufficient amount for your family to rely on comfortably?

Critical Illness Coverage

Generally, Life Insurance Association Singapore (LIA) recommends about 5 times annual income for Critical Illness cover - that translates to about $350k in your case ($70k x 5).

Based on what you have stated, you have $275k Critical Illness coverage, or a shortfall of about $75k. Given that you are self-employed (I assumed so, as a property agent), you should strive to have more than 5x annual income for Critical Illness cover. This is because you may not have a comprehensive corporate insurance scheme to fall back onto. Hence, your private insurance will become more imperative than ever before.

Disability Income Insurance

At the basic level, you will have CareShield Life. However, the key question is whether the $600 monthly payout is sufficient to take care of your needs?

More Details: CareShield Life Singapore: Everyone's Basic Disability Income Insurance

Similar to the need for additional Critical Illness cover, you should enhance your coverage for disability income. This is so as to have a solid scheme to fall back onto if the need arise.

In addition, you may wish to consider a separate personal accident plan. This is because you are often moving around for work (I assumed so). Hence, you may wish to consider hedging against the additional risk to that end.

What happens after age 65?

Generally, you should keep your healthcare insurance for a simple reason - health is wealth. Additionally, I'm assuming that you have taken into account the rising cost of premium for your healthcare insurance after you have reached FIRE. If not, you may wish to reorganise your numbers - this is a part that some of my clients overlooked during their retirement planning.

As for life insurance, it depends on whether you wish to leave anything behind for your family. Of course, some of my clients will have acquired sufficient cash and assets to replace the need for life insurance. At the end of the day, insurance is merely one of the tools for wealth management. Your main priority will be how to integrate it into your overall financial planning without bursting your budget.

Insurance Portfolio Summary

Meanwhile, I will suggest you to consolidate all your insurance policies into a comprehensive insurance portfolio summary. This is to make reviews easier, and you can understand all your policies at a glance.

More Details on its benefits: Why Every Client needs an Insurance Policy Summary

Estate Planning

Finally, if you have not done so, I will suggest you to look into the estate planning aspect for your portfolio, e.g. CPF nomination, insurance nomination, Will, LPA. This is also an aspect that many of my clients take for granted.

I share quality content on estate planning and financial planning here.

Hello Anon,

1)
For yourself, I would recommend getting a whole life or term plan that cover you till at least 100 years old. There are cases where people are diagnosed with illnesses at 66 and are unable to make claim as their term has ended. Due to ever improving medical technology, our life expectancies increases too.

For your wife, you mentioned that she does not have ECI. There are standalone ECI plans which you can add to her cover.
A rough gauge for CI and ECI is to factor in 4-5 years for recovery and treatment. So generally it is recommended that the sum assured is 4-5x your annual income or expenses.

2)
For disability, it's important for your wife and yourself as your income depends on you closing a deal. When purchasing, it's important to look out for the requirement of ADLs to be considered disabled as well as the waiting period.

3)
In terms of wealth protection, you guys are pretty much covered.