My parents (about 60 yo) and I have NTUC Incomeshield. No life ins/CI plans. My dad is self-employed and does not have much CPF nor savings. As the only child earning about $3.5k, any suggestion?

Hi Anon,

Given your situation, I would suggest these 3:

Personal accident plans
They cost very little but can cover you in case you get “taken out of action” due to an accident.

either to cover your medical expenses or more the PA plan should be able to cover you.

Shield/Hospitalization plans
Then I would relook at IncomeShield, not to replace them if there is pre-existing but to review it’s premiums vs affordability.

Disability coverage
And thereafter, consider elder shield/careshield life to cover in events of disability.

And along with these, you should look at getting Wills/CPF nomination/LPA/AMD done as well. These aren’t insurance plans but it speeds up the process of inheritance money.

There you have it, I can offer you many many things but it’s pointless, start with these items that are essential.

You can look at managing cpf monies for you and your parents. However little it is, you still have to look at it.

Myself is an independent financial advisor, I go beyond offering insurance products even though I can offer from multiple companies.

All the best.

P.s. I can be contacted at [email protected]

Know Your Finances

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-pers...

Know Your Coverage

Next, we need to evaluate the adequacy of the NTUC IncomeShield, e.g. whether there is a rider to cover for deductible and especially for co-insurance. Here is why this is important: Should I buy Rider for Integrated Shield Plan in Singapore?

Wealth Protection

As the only child who will become the main engine for the household's income, we need to get yourself properly insured.

Here is the 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

In the market, there are generally three types of plans available - term insurance, participating whole life insurance, and investment-linked policy.

More details:

What is a Term Insurance Policy?

What is a Participating Whole Life Insurance Singapore

Term vs Whole Life Insurance Singapore

Based on the cashflow that we have done earlier, get yourself properly insured to this end.

Retirement Planning

Thereafter, have an open discussion with your parents and listen to their needs. Spend quality time to understand how much they need for their day-to-day expense. At the same time, find out whether there are any outstanding loans, e.g. mortgage.

Once we have the information available, evaluate your cashflow to determine how much you can set aside for them. On the whole, no amount is too small.

Don't forget Yourself

While it is filial to give whatever you can for your parents, don't neglect yourself. For the most part, save a small amount of money for yourself and put it into instruments that can help you to grow for your future needs.

All in all, arrange quality time with your parents and discuss how you all can work together as a family so that finances will not become a concern. Focus on healthcare as a single medical bill can wipe out your entire life savings. When required, speak with someone who you trust for a professional second opinion or advice.

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