Need help to evaluate my current insurance coverage for a 25yo male, non-smoker, with 50k annual income?

Hi anon,

I'll break down my evaluation as such:

Hospitalization: Does your integrated shield plan have a rider? If not, please consider adding one to minimize out of pocket costs. If it's already at private hospital level that's ok. It's also ok for you to have a government level plan

Death/TPD: If you don't have dependents or liabilities, then not strictly necessary

Critical illness: You have 5x annual income with a 50/50 split between Early CI and late CI on a term plan. The only question I will pose to you is: What happens if you have a CI after age 70. Are you willing to liquidiate your retirement assets to deal with the costs?

You are generally well covered. PA (for things such as TCM, etc) and Disability Income can be considered depending on your lifestyle and job scope, but for the major pitfalls in life, you have something in place already.​​​

For one thing, there is insufficient information if you want specific advice on the adequacy of your insurance coverage. Nevertheless, let me give my take based on the presented information.

Firstly, we will need to check and confirm whether you have the rider for integrated shield plan. Moreover, we will want to know if you are required to make any co-payment.

For life insurance, this is the general guide that I will use (Read Part 1.2): 3 Types of Insurance Policies in Singapore

Based on your income, it seems like you are underinsured for death coverage. For this purpose, you may wish to evaluate your near and long-term goals. For instance, if you intend to buy a house in the future, then do you prefer to pay a higher insurance premium in the future, or to hedge against the cost today?

As for Critical Illness coverage, we are barely hitting the general guideline that Life Insurance Association recommends. In like manner, you will need to evaluate whether you have the budget to insure yourself slightly more (in view of your increment, promotion, and bonuses), or you are comfortable with what you have today. There is no strong need to get more coverage if you are okay with your current coverage. Of course, we also need to evalaute other factors, e.g. family history for more specific advice and calculation.

Finally, it will be good to note down what happens after 70 years old? For example, will you be able to afford to pay the higher insurance premium for your integrated shield plan? Does your dependancy for Critical Illness coverage reduces down to zero? If not, how?

These are just some thoughts that I have at a glance. Then again, things are generally fine and I'm glad you have a decent level of insurance coverage at your age!

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