In a 21 yr old female that has started on my first job, what insurance would you recommend i get? - Seedly
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Asked on 15 Jan 2020

In a 21 yr old female that has started on my first job, what insurance would you recommend i get?

Have gotten the great eastern wealth multiplier already, but none for protection except hospital plan

Any advice?


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Hi anon,

In order of importance, here is what you should be looking at:

  1. 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. You already have this so at least that is a start.

  2. 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 costs. This is usually via a limited payment life plan, or a term plan, depending on your budget/needs

  3. 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.

  4. 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.

Work with an independent financial advisor who can provide multiple options and explain in detail what you will need to know before coming to a decision, especially with respect to cost effectiveness as well as the minor differences between the plans.

Do note that GE Wealth Multiplier is an endowment plan, and it will not be for protection purposes. If you are not past the free look period, you might want to revisit your purpose for getting this plan.


ūüĎć 5

Outside of the great responses you have gotten above, I would encourage you to ask your employer to give you some form of insurance. You are already in and so they may not now but if they are aware that you desire it they might give it to you next year. It's a way to keep good employees as well as to attract talent. End of the day it's a cost to you.


ūüĎć 0

I believe pretty much the rest have given their views on the most important.

My ranking is roughly the same.

(1) Hospitalisation

(2) DI/CI depending on how you want to be insured. (in which other causes that is not covered by hospitalisation).

(3) Accident and the rest

As you are young, you do not have much dependents/needs other than to insure yourself. hence, take your time to buy.

Do not be confused with savings and investment for insurance. try to look at FACTs and Figures to make a better informed decision.


ūüĎć 0
Kenneth Quek
Kenneth Quek
Level 5. Genius
Answered on 16 Jan 2020

Your hospitalisation plan is arguably your number 1 most important plan.

Even for things like Critical Illness, most of your medical expenses ought to be covered by your hospital plan. Then, what do you need critical illness insurance for? Well, perhaps for loss of income if you are unable to work while being treated? But then again, there is Disability Income Insurance that could help to cover that. It covers beyond the definition of Critical Illness and potentially until you are 65. (Do your own due diligence.)

Honestly, to my thinking, I can't think of a good reason for CI insurance after I realised that treatment bills will be paid for by H&S and loss of income will be helped by DII. Perhaps a smaller coverage for CI to top-up what DII cannot cover, but otherwise, I don't see the need for high CI coverage.

And just to put it out there. You don't need life insurance unless you have dependants. In which case, ask your employer if they have group insurance you can tap on.


ūüĎć 0

Hi Anon,

Just putting my thoughts which I believe many would have replied you.

1st priority would definitely be the hospitalisation plan, because healthcare is a rising cost in Singapore, you want your income to be protected in the event something happens to us. Also based on your age, I believe the premiums should be covered via medisave if you are singaporean.

2nd, I would put personal accident in this, as accidents are always unforeseen, and also this is also a very affordable policy especially for someone who just started work.

After you have these 2 affordable policies for protection, then we can look into a whole life/ term policy, where this will address death, total permanent disability & critical illness coverages. But of course it would be best to meet up and agent and see what they can present to you and you can decide to see what would suit your needs.

Do reach out if you have any questions or would like a meet up :)


ūüĎć 0

Congrats on your employment Anon.

The absolute number one priority would be a hospitalization and surgical policy. In Singapore we have the Integrated Shield Plan. Get that with a rider to cover co insurance and deductibles.

Next would be income protection. This would be the form of a Critical Illness policy. Get coverage equivalent to 5 X your Annual income.

Next would be coverage in the event of death if you have dependents or planning to have dependents in the future. Get 10 X your Annual Income as coverage.

Do note that Great Eastern's Great Wealth Multiplier is a perpetual endowment plan and is not a tool for protection needs. Treat that as an investment purchase.


ūüĎć 0

Firstly, one of the most important things to do is to have a complete understanding of your existing insurance portfolio. Through this process, it allows us to understand the coverage that we have, any financial gap, as well as to find out whether we are overpaying for our insurance policies. I have highlighted the rest of the reasons here:

For insurance coverage, the first priority is always healthcare. The reason is simple - medical inflation hits 10% in 2019. Accordingly, a single medical treatment could potentially wipe out all your savings. To do this, it is always valued to have your own private integrated shield plan. Here is why:

After you have the basic foundation set up, you may consider a basic life insurance plan that covers for death, total & permanent disability, and most importantly for critical illness.

There are many options available in the market, therefore, take your time to understand which suits your needs. Here is a general comparison between a term and whole life insurance to help you with some basic understanding:

Once you have a stable income, here is the general rule:

10% to 20% of your annual income on healthcare insurance and life insurance

Basic Life Cover = 10 times your annual income

Critical Illness Coverage = 5 times your annual income

Having mentioned that, this is a general guideline that may or may not work for you. The best way is always to have an in-depth understanding on your cashflow, current situation and future goals. It is only when we know you well enough, then it is appropriate to give you the best advice or suggestion that fits into your needs.

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1 comment

ūüĎć 0

15 Jan 2020

1. Hospitalisation (With rider) 2. Critical Illness (Best if you can get one that pays you multiple times. Because if one gets cancer and even if the person recovers, it's hard to get an insurer to insure you for the second time for fear of relapse) 3. Term Insurance (NTUC group insurance is the cheapest for ladies). These are the 3 basic ones. If required, you can get whole life policies later when you have dependents (or even if you have parents who depend on you for income, they are considered dependents too). You can also consider others like Personal Accident (so many bicycles these days), and Disability Income (gives a payout, a per cent of your last drawn salary if you're unable to work whether temporary or permanently due to disability). Hope this helps.