facebookI currently have enhanced Incomeshield + rider plan for my hospitalization insurance. Is it necessary to get term/whole life insurance for CI, Death & Disability? - Seedly

Anonymous

17 Jan 2024

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Insurance

I currently have enhanced Incomeshield + rider plan for my hospitalization insurance. Is it necessary to get term/whole life insurance for CI, Death & Disability?

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Whether or not it's necessary to purchase term or whole life insurance for critical illness, death, and disability coverage depends on your individual circumstances, financial goals, and risk tolerance.
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The enhanced Incomeshield plan with a rider provides coverage for hospitalization expenses and covers a range of critical illnesses, including cancer, heart attack, stroke, and kidney failure. Still, in terms of coverage, death and disability coverage offers financial protection in the event of death or disability.
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In terms of timeframe, Term life insurance provides coverage for a specific period, while whole life insurance covers you for your entire lifetime. However, term and whole life insurance differ in more ways than timeframe of coverage, such as cash payout component. When comparing term and whole life insurance, you will need to compare between the cost of higher premiums in the near future against a cash payout in the distant future. Take a look at this article for a more thorough comparison between term and whole life insurance.

Elijah Lee

22 Jan 2024

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

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I'll put it in a philosophical way:

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If you're sick, you're going to need money.

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If you can't work, you're going to need money.

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If you're no longer around, your dependents are going to need money, and the mortgage still needs to be paid.

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The hospitalization plan will not pay out any money to you.

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In fact most people do not realize that the ultimate beneficiary of a plan is who get the money in the end.

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So actually a hospitalization plan ultimately ensures that the hospital/doctors/nurses get paid for the healthcare services that they provided!

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The beneficiary of a hospitalization plan can be said to be the hospital in this case!

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So after the hospital gets paid for treating you, who's going to pay you so that you can continue to live your life?

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Think about it this way, and you'll know whether you need death/CI or disability insurance or not.

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Once you're able to answer that question, then we can talk about how much coverage you need.

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I hope you'll be able to see what I'm driving at.

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We buy an insurance is to get a payout in an agreed time or event.

a term or whole life plan payou...

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