Asked on 07 Sep 2019
I am making an effort to get myself fully covered and currently have:
Hospitalisation plan - Total Health Platinum with GE
Aviva GTL - $1Mil coverage and $350k rider for Late CI
Accidental plan by company insurance
My parents are healthy ATM, semi-retired but I foresee them to become more frail in the next 5 - 10 years and they do not have any life/health insurance.
What can I do to protect myself from a financial disaster should they become sick or diagnose with CI?
If they're still healthy, an integrated shield plan for them should be the priority. Raffles Shield and NTUC Income Shield would be one of the cheaper premium options for seniors.
Next would be some of the silver series insurance policies by NTUC, specifically, a PA plan called SilverCare/MerdekaCare and also Life Insurance plans like Silver Protect and Silver Secure.
The lumpsum payouts from the life insurance would mainly cover any additional expenses that the hospital plan may not pay or additional long term expenses incurred such as the cost of nursing care.
You have to balance the cost of buying insurance and self-insurance.
At their age, CI cover is quite high. Taking comparison from Comparefirst.sg (for your parents, since MoneyOwl doesn't allow it to be selected at all), you will find that you are paying $6,000 a year for a 10-year term, for coverage of $200,000.
That's about 25% of the amount coverage, so it doesn't make sense imho.
The best is to get your parent covered with Hospitalisation Plan, which will limit the medical expenses to be paid. Also, you can use your Medisave to pay for it in case cash is not available, or your parent Medisave payout is maxed out.
For yourself, I find it's alright, so I'm not so worried.
Hopefully, your parents are already covered by Medishield. If your family can afford to enhance this, then go for the integrated shield plans subject to budget and needs. At their age, most will find insurance premiums too expensive and/or coverage too limited (for example, cos' of pre-existing conditions). Try to make use of government schemes where possible, for example, Eldershield.
As for yourself, can consider getting more term life or personal accident cover. PA cover through MINDEF Aviva $6 a month for $600k death/TPD. Or more expensive PA (but with more benefits), for example, those offered by AIG or Sompo, around $50 a month for $500k death/TPD cover with other benefits such as monthly disability income and medical expense. check out https://thelobang.com/index.php/2019/08/27/insurance-basics/