Personal Finance 101
Asked on 05 Dec 2018
Personally, I would say the rank should be:
Hospitalisation (H&S) plans
Term or Whole life (depending on your needs)
Personal Accident (limited cases of being only in accidents before claiming)
Because if you think about it, if you get knocked down by a PMD.... you will also use your H&S to claim for your hospital stay... anything that is warded, you'll be able to claim using your hospitalisation plan.
It really depends on your needs,
1) Health and Surgical (commonly known as Shield Plans) are the most important because medical cost has been steadily rising, to the point where regulations need to be in place for co-insurance. Please upgrade at least to the minimum standard plan. This covers your medical expenses.
2) Critical illness: Rule of thumb 5-7 years of your income. It means for you to take a sabbatical, while you focus on illness recovery. Or even to seek for unconventional treatments not covered under the H&S plans
3) Life insurance. These are mostly for your dependents. It replace you to provide for your dependents financially. It helps you take care of them.
4) disability income. This replaces your job if you happen to be unable to work. Though my personal take is, if you are earning $3,000 and below, it may not be worth while since most jobs can pay to that amount. This may or may not be for you.
5) Accident Insurance: most accidents can cause disability or even death, so this coverage is more to top up any likely shortfall for TPD. It works as a safeguard for all kinds of accidents.
If you are poor, no Income etc, please get a H&S / shield plan to cover medical expenses.
05 Dec 2018
The most important is hospitalisation plans which you can use your CPF Medisave to pay for (so you don't have to spend cash)
2nd would be term plan if you have parents or children that depends on your income.
all other plans not that important if the event does not cause you to be financiall ruined. Yes a visit to GP because of a PMD accident is not good, and not cheap, but it won't ruin you. So why do you need to buy coverage for that.
For me, i just buy personal accidents that covers death and dismemberment. cheaper from general insurers like https://hmconsultancy.com.sg/personal-accident-covered-benefits-necessary/