facebookI am a 26yo female this year with 2k take home salary. I have about 200-250 left after savings/study loan/expenses. What insurance should I look at first and are there any recommended ones that I should explore? - Seedly

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Anonymous

22 Jun 2020

Insurance

I am a 26yo female this year with 2k take home salary. I have about 200-250 left after savings/study loan/expenses. What insurance should I look at first and are there any recommended ones that I should explore?

Just realised that parents + me and sister does not have any health insurance etc and it did scared me a little so looking to start while me and younger sis is still young.

What insurance should I look at first for me and younger sis, as well as parents (54 and 55 this year)?

Discussion (3)

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You can do your rough numbers here, together with a budget:

https://www.aaronleow.com/insurance-requirement...

  1. Get hospitalization insurance first.

  2. If budget allows, get death, disability, and critical illness. If it is a stretch, get a 10-year term until your finances improve.

  3. Insurance should not exceed 10% of your monthly cash flow.

  4. Some insurance is better than none. Do what fits your budget and comfort level.

Pang Zhe Liang

21 Jun 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Healthcare

As a start, the first priority should always be healthcare. The reason is simple - medical inflation hits 10% in 2019. Consequently, a single medical treatment could potentially wipe out all your savings. Therefore, it is always good to know the healthcare insurance policies available in the market and to evaluate whether you should enhance your coverage.

More Details:

Is MediShield Life enough in Singapore?

Integrated Shield Plan Singapore: A Starter's Guide

Life Insurance

After we have set up the basic foundation, the next step will be your life coverage. This is because you are the biggest asset that you own. Therefore, greater emphasis should be placed on protecting your wealth (before we grow it further).

Generally, most insurance policies in Singapore will cover for pre-mature Death, and Total & Permanent Disability. While optional, one of the crucial coverage to have will be (early) Critical Illness.

There are many options available in the market, thus take your time to learn more about it. Alternatively, speak with your insurance agent or choose an experienced consultant who is capable of guiding you through the process.

More Details:

What is a Term Insurance Policy?

What is a Participating Whole Life Insurance Policy?

Term vs Whole Life Insurance Singapore

How much insurance coverage should You have?

As a general rule,

10% to 20% of your annual income on healthcare insurance and life insurance

Basic Life Cover = 10 times your annual income

Critical Illness Coverage = 5 times your annual income

More Details:

Understanding Your Personal Cash Flow

Having mentioned that, this is a general guideline that may or may not work for you. The best way is always to have an in-depth understanding on your cashflow, current situation and future goals. It is only when we know you well enough, then it is appropriate to give you the best advice or suggestion that fits into your needs.

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

First on my list would be a shield plan.

you should already have medishield life. so consider if y...

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