Asked 3w ago
Retrenchment benefits usually come in the form of a fringe benefit. They are not meant to replace your income, but rather to provide a small financial stimulus as you seek an alternative income source.
Some policies that come with retrenchment benefits include SingLife Account, ManuLife RetireReady Plus II, and NTUC Family Protect Plan. We have broken down the retrenchment benefits of these different policies in this article. Feel free to check it out.
There are some plans out there that come with a payout in the event of retrenchment.
Note that this does not mean that the policy is meant to payout upon retrenchment, it is merely an added benefit.
For example, Manulife's RetireReady Plus II has a one time payout of 40% of your premium should you be retrenched, and you can also put your premiums on hold. The main purpose of this plan however is for retirement income, and not for retrenchment benefits.
Some plans also have a waiver of premiums for up to 6 months upon retrenchment, while some allow you to suspend the premiums (without interest). It all depends on the plan you are looking at, so I can only comment in general.
The best form of protection against retrenchment however will always be to build secondary income sources that continue to pay you if you are not actively working. Naturally, this takes time, so in the interim, you need to make sure that you ensure sufficient liquidity with an emergency fund, spend within your means, and don't over commit to something expensive without going through the numbers first.