Should I get life insurance or critical illness insurance first, then add on the other after, or get both insurances together? I'm looking at term till 65 or 70 yo. What is a good sum assured? Any policy recommendations?

Now there are life insurance covering death, TPD and (early) CI. So you can buy one policy to cover all.

There is a term insurance that allows you to convert it to a whole life plan later. You may consider that.

Generally, life insurance coverage can be split into three life's major event,

1. Pre-Mature Death

2. Total & Permanent Disability

3. Critical Illness

Death Coverage

There are a couple of factors that we need to clarify and plan before we can establish whether there is a need for death coverage if you are single. For example, do you have any dependents? Do you have any liabiltiies?

Based on the latter example, just because you are single doesn't mean that your liabilities will be written off upon death. Therefore, there exists a need for proper estate planning to this end.

More Details:

5 Reasons why You need Life Insurance - Death Coverage

Total & Permanent Disability

Since you are alive and continues to live, there exists a need to be insured.

More Details:

5 Reasons why You need Life Insurance - Total & Permanent Disability Coverage

Critical Illness

Similar to the rationale for Total & Permanent Disability, there exists a need for you to be insured.

More Details:

5 Reasons why You need Life Insurance - Critical Illness

On the whole, these are general guidelines which may or may not work for you. Therefore, you are encouraged to conduct comprehensive financial planning. Through this process, it ensures that we are well-planned ahead in life.

Hi! If you have the budget, it is best to get all your insurance coverage as soon as possible when you're young because the premiums are much cheaper.

For yourself, I would recommend to take a term insurance with sum assured of at least $350k till age 65 as usually after 65 years old , people will most likely have no liabilities and no need for life coverage.

However, if you wish to have a plan with cash value, you should opt for a life insurance. This means, once you reach 65 years old and wishes to terminate your life plan, there will be a lump sum of amount given.

(A recommended amount for life coverage is 10 x your annual income. However, if my clients have young children, i would recommend that the number of years should be till they reach 21. Eg. Youngest is 2 years old, sum assured is 19 years * annual income)

For CI, the recommended sum assured is to have 3-5 years of annual income. For your case is, $100k to $170k. I would recommend you to survey on AIA Power Critical Cover as it covers a wide range of CIs, allows you to claim 5 times the sum assured and most importantly covers relapse of cancer, heart attacks and strokes.

Hope this is helpful!

If you do need more info, you can reach me at https://m.facebook.com/familyfinanceguide/ 😊

I would suggest covering both at a reasonable budget, rather than then going for either.

Sum assured for life insurance depends on,

1. your liabilities, such as study loan, housing loan (may not be applicable now) etc

2. the amount you want to leave for your parents, or maybe cover last expenses.

For CI, you will be looking at cost of treatments (that is not covered by hospitalisation plan which I hope you do have, this is the most basic form of insurance!), and living expenses along with cost of not being able to work.