Between critical illness insurance and medical insurance, if I have to only pick one that I can afford now, which should I buy?

Hello,

Personally, I suggest medical insurance first. Because I used it to fully cover for my day surgery a few year back. Really appreciate that I got it then. 🙏🏻

Also, you may choose to pay fully (or most) of it using Medisave. So you wouldn’t have to worry about having to come out with a lot of cash. If situation allows, you should also consider covering for the deductibles and co-insurance. However, this part need to use some cash.

For your situation, you can consider getting CI coverage when you have worked a few more years and feel less cash tight. It is important too!

Do let me know if you need any help. I try my best to help. 😊

Benson Ng

Phillip Wealth Advisory

Sincere, Honest & Professional​​​

Hi anon,

I would suggest that you get your medical insurance sorted out first.

The main reason is because medical insurance underwriting is by far the strictest. And our health is only going to get worse over time (slowly but surely).

Thus, locking in your medical coverage is of paramount importance. If you really only have budget for one policy, then this is what you will want to get. Based on your profile of someone who just started work, you'll have some medisave monies credited to your MA and should not have an issue to afford the government A ward plans at a minimum. Your cash outflow may be heavy due to study loan repayments, etc, which is perfectly understandable. If you still can spare a little more cash, then get a rider to cover co-insurance and deductibles.

However, do not put off getting critical illness coverage for too long. Once your finances have settled into a steady ebb and flow, you should start to explore this part of your coverage. After all, medical insurance pays the hospital's bills, but when you are down and out due to a CI, who will pay your bills?

Looking forward, upskill and improve your human capital so that you can command a higher wage. That'll put you in the position to comfortably afford the coverage you need.

Good luck!