I am a female (26) diagnosed with lupus last year without any insurance. Any advice on how I should cover myself since it's quite hard to get any insurance now?

Hello,

I'm sorry to hear that you were diagnosed with Lupus. It's a disease that usually requires lifelong medication.

I have seen similar cases before, as I have tried to get critical illness coverage for a client of mine who was also diagnosed with SLE, but all insurers basically came back and told me that they were not able to insure her. You may wish to try for a prelim underwriting or a parallel submission to multiple insurers, but I must caution that chances are very slim.

So at this stage, you will definitely need to rely on any policies that you have, one of which is Medishield Life (If you are a PR/Citizen), which will cover you even for pre-existing conditions. This is at least a measure of relief against hospitalization bills.

Next I would suggest that you start your investment journey to work on your goals such as retirement, as there is little that can be done on the insurance side. That was what my other client did as well. However, there are many asset classes and options that are available, so it would be good for you to sit down with an independent financial advisor to discuss you aspirations and goals so that a concrete strategy can be worked out for you. You will want to create a second stream of income for yourself since you won't be able to reply on a payout to support you if you cannot work due to illness.

Of particular importance for you is also to ensure a larger emergency fund than others, kept accessible, as you will not have any insurance payout in the event of other critical illnesses in future. I'd advise you to keep more in liquid forms such as high interest saving accounts, FDs and such.

Healthcare

If you are a Singaporean or a Permanent Resident, then you will be covered under MediShield Life. On the positive side, MediShield Life covers all pre-existing medical conditions. Therefore, it forms the basic cushion for your healthcare needs. Depsite that, you will need to be aware of its limitation and I have summarised it here: Is MediShield Life enough in Singapore

Next, if you intend to enhance your healthcare insurance coverage, then you may wish to look into an integrated shield plan. For this purpose, I have done a detailed write-up on how the basic plan and the rider works:

More Details:

Integrated Shield Plan Singapore: A Starter's Guide

Integrated Shield Plan Rider Singapore: A Starter’s Guide

Thereafter, we can opt to submit your case for preliminary underwriting. Through this process, it allows us to have an initial idea on the underwriter's perspective for your case.

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

After we have calculated the coverage that we need, I will suggest for you to submit an application in the same way. This is usually done together with all your recent medical reports. From there, we can have a better assessment for your case and how to help you get insurance coverage to that end.

Retain the Risk

When you are unable to transfer the financial risk to the insurance company, then we will need to accumulate sufficient wealth to self-insure. Accordingly, we need to conduct a proper cash flow analysis. Thereafter, we will set aside a portion of your income that specifically acts as your insurance coverage.

To summarise, speak with your agent or an experienced consultant to have a brief assessment for your case. Next, consider to submit an application to the insurance company to get a clearer understanding on the underwriting for your case. When things doesn't work out, analyse your cashflow and create a budget that is capable of safeguarding your future.

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