Do you think having a hospitalistation, accident and life insurance plan is sufficient? For the life insurance plan, am going to check if it comprises of CI? - Seedly
 

Insurance

Asked by Anonymous

Asked on 03 Oct 2018

Do you think having a hospitalistation, accident and life insurance plan is sufficient? For the life insurance plan, am going to check if it comprises of CI?

Did consider to buy savings insurance previously but think will invest in SSB instead.

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Hi Anon, the purpose of life insurance is to protect and replace the income that was supposed to be generated from the insured person.

The rules of thumb advised by LIA is to get:

Death & Permanent Disability Cover of 10 -15 X Your Annual Income

Critical Illness Cover of 3 -5 X Your Annual Income

Thus, if any of the above scenarios were to happen, your family can continue life as is, without sacrificing on their quality of life. Kids still get to go to school and there's less pressure on the spouse to make up for that loss of income.

In the event of Critical Illness like Cancer, Stroke, Heart Attack, the insured will still be around, but he/she would need to stop work to recover. Usually you'll be able to get back on your feet in 3 - 5 years. While your hospitalization plan should pay for all your bills, that CI payout is to make sure you can focus on recovering quickly.

And you can choose to protect these for a term or for the whole of your life. My clients usually do some term, some whole life. Coverage is important, but cashflow is important as well, so do strike a balance on your % of income that pays for insurance.

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Mabel Tan
Mabel Tan
Level 3. Wonderkid
Answered on 03 Oct 2018

Hello!

In in terms of basic protection, to have the five limbs (Death, TPD, CI, Hospitalisation & Accident) covered would be considered sufficient. However for your life plan with CI coverage you might want to take note of the period when you bought the policy and the coverage of it. Generally plans with CI coverage bought before 2012 does not cover early critical stages. so it might be something you might want to take note of as well and check with your adviser.

Or if you’d like a second opinion, you can contact me at m.me/mabeltanyuling. Cheers!

All the best!

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If you have enough money, just make sure you at least have a simple CI cover. For me, i just feel that 1st is hospitalization, 2nd is critical illness and 3rd is life insurance (prefer term). Just my opinion.

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Nicholas Chan
Nicholas Chan
Level 6. Master
Answered on 04 Oct 2018

Hospitalisation + term life + disability income insurance should be good.

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Good Day Every Day
Good Day Every Day
Level 7. Grand Master
Answered on 04 Oct 2018

You need ECI coverage with a rider but the problem is that ECI is usually very expensive.

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Colin Lim
Colin Lim
Level 4. Prodigy
Updated on 07 Jun 2019

for saving insurance or ssb...

lets say today if insurance can offer u 2.15% per annum for 3/5years. vs a ssb 3years at 2.28% which 1 will u choose?

i share with my client ssb is not guaranteed in terms of interest but capital guaranteed. secondly, if death occurs, insurance company offer death benefit of a % on your net capital.

most of my wise clients will pick the choice of putting their savings into insurance company.

likewise for endownment plans or retirement plans... they have insurance features to cover your savings should anything happen to you. whereas your normal Fixed deposit, ssb, your normal saving accounts dont give these type of insurance benefits.

give a like to upvote me.

if u need advisory and purchase of products, you know who to look for..

😁✌

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Colin Lim
Colin Lim

04 Oct 2018

personal accident is a something to cover for slight accident that wunt result in a hospitalisation but small claims matter.
Colin Lim
Colin Lim

04 Oct 2018

i will say abit as this is my rice bowl to give advisory to people who are interested to know more.