Asked 3w ago
How will you rank them in the order of importance on which insurance plan to go for first? Thank you in advance! :)
If you have already settled your emergency funds, then in order of importance, here is what you should be looking at:
Hospitalization plan. This covers any hospital bills and associated pre/post hospitalization costs. This would be from an integrated shield plan, with a rider to take care of the deductible/co-insurance. Depending on your budget, you can take a private hospital plan and downgrade later, or just go for Goverment A ward.
Critical Illness coverage. This provides a sum of money for you to cover your expenses and other out of pocket costs should you fall critically ill and are not able to work. Usually recommended to cover at least 5 years of expenses and an additional sum to cover out of pocket. This is usually via a limited payment life plan, or a term plan, depending on your budget/needs
Death coverage. This provides a lump sum of money should something happen to you. Not mandatory if you have no dependents or liabilities. Usually takes the form of a term plan. For the coverage amount, you could use a multiple such as 10 x of your current income, or calculate based on your current liabilities.
Personal Accident. For the minor stuff like TCM claims, etc.
Generally, you should not have to spend more than 10% of your income on coverage.
You can work with an independent financial advisor who can provide multiple options and explain in detail what you will need to know about the types of insurance as well as the options from various insurers before you come to a decision, especially with respect to cost effectiveness as well as the minor differences between the plans.
You will want to be comfortable to share your fiinancial details with your advisor as that will be important for the advisor to consider your current situation before suggesting suitable solutions.
It is great to see that you are looking into getting coverage at a young age.
Firstly, I feel that it is important that you set aside funds for emergencies. You can consider putting them into getting an insurance saving plan with the flexibility to withdraw anytime. An example would be GIGANTIQ - which is one of the popular digital insurance plans we have on our platform.
In terms of coverage, I would recommend you to ensure that you look into getting an integrated shield plan. This would ensure that your medical expenses are well covered should you be hospitalised.
The second one would be coverage for critical illness. Critical illness is something that is increasingly prevalent. In fact, 1 in every 4-5 Singaporeans has a lifetime risk of developing cancer. Having a critical illness plan would help to mitigate the financial loss, in the unfortunate event you are diagnosed with a critical illness.
Depending on your situation, you may or may no require death coverage. If you have dependent or liabilities, You might want to consider getting a term or whole life insurance that payout should something happen to you.
As with all insurance products, this will differ across individuals based on your personal financial situation. I would advise you to speak with a financial advisor before making a decision. You can arrange a free financial portfolio review with PolicyPal.
For your information, PolicyPal has a 10% rebate on commission when you purchase life insurance products with us.
This is what I can think of, somewhat in order of importance? I placed standalone CI a little lower because, personally, I only have (1), (2), (3) and (5).
Hospitalisation plan aka Integrated Shield Plan. Applicable to anyone. Get your family covered too. Consider getting the rider too to further decrease your potential bills.
Life insurance. Applicable to income earners who have dependents and/or liabilities. Consider getting the critical illness (CI) rider because CI can stop you from working. As for early critical illness (ECI) rider, it is extremely expensive. Note that CI riders accelerate a portion of the death payout. As for term vs whole, I urge you to google this instead and there will be many articles explaining the differences.
Disability income insurance. Applicable to income earners who have dependents and/or liabilities.
Standalone CI with optional ECI cover. Applicable to income earners who have dependents and/or liabilities. Not cheap. If your life insurance already has sufficient CI cover, you may not want this.
Personal accident insurance. Applicable to income earners who have dependents and/or liabilities. However, if you have a desk job and you assess your accident risk to be rather low, then you may not want this.
CareShield supplement. Applicable to anyone. I'm not 30 yet so I haven't gone to get the quotes for this. I'll probably get ignored...
There may be more...
Start with hospitalisation plan first.
I'll get a short term 10 yrs term plus ci plan so that in case I've ci, it can be covered.
When i get married, I'll explore a long term plan till 65 to cover my mortgage plus 10x income
Along side, I'll cover some eci till 65.
At this time i might drop my 10 yrs coverage as I'll have coverage by the till 65 yrs old plan le