Insurance Review: Just wanting to seek opinions on my insurance coverage on whether it is insufficient / excessive

Hi anon,

Here's my take and I trust it should address your queries:

1. Shield plan:

Keep. Yes, premiums escalate due to medical inflation but it can be managed with proper planning. Don't switch.

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2.Careshield Supplement

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You're fine. Keep it.

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3.Whole Life

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Nothing wrong with it and you're already some years into the premiums I presume. Finish it off and it covers you for life.

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4.Term + MPCI

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This is a good combination to provide additional CI and ECI cover along with D/TPD. Keep it. One of the most efficient and effective term + multipay combinations out there.

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5.Accident

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No frills, cheap, you could go for $1M on both group term and group PA and it should not cost a lot. Just remember that the policy is ultimately owned by MINDEF and not you and this should not be viewed as a subsitute for your own personal policies.

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My take on multipay for whole of life:

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Short of a medical miracle, getting a CI in your late 70s or 80s is pretty much going to be the end for most people. I have 2 aunts who passed from cancer in their 80s and it was very very fast when it happenened (<1 year).

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If you're young as you are, the chances of surviving a CI are definitely higher since we're always at our healthiest today and can only become less healthy as time passes. I personal know of people who have survived cancer twice before their 40s. So in all likelihood you'll have a reasonable chance to survive and might face a potential 2nd CI down the road. This is where multipay can come in to provide that 2nd payout cushion.

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And if you happen to be blessed with longevity, a multipay plan for the rest of your life means you'll juggle both the multipay premium as well as the hospitalization plan premium for as long as you live.

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Lastly, MAS guidelines are for 4x annual income for CI cover. That pegs your needs at about $240K. You have $575K. Nothing wrong with that since you income will likely continue to increase, but you might be feeling a little strain since you are paying very close to 10% of your annual income.

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Edit: (Formatting....)

It's evident that you've taken a proactive step towards safeguarding your financial well-being. I am a financial planner with HSBC Life, I believe in crafting tailored solutions that not only protect but also optimize your resources for future growth.

Given your unique profile and concerns, I'd love to delve deeper into your financial needs and life goals. Understanding your aspirations will enable me to analyze your existing portfolio thoroughly and provide personalized recommendations to ensure adequacy while optimizing savings.

I invite you to connect with me for a one-on-one consultation. Let's explore how we can fine-tune your insurance coverage to align with your evolving needs and aspirations. Looking forward to assisting you in securing a brighter financial future