Asked by Anonymous

What insurance should I get because I am going to ord in July this year and I am going to start on my first ever full time job earning only $2k? Anyone can reco me a decent plan or what I should know before meeting an insurant agent? ?

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    • Luke Ho
      119 Answers, 212 Upvotes
      Answered on 04 Jun 2018

      Hi,

      I would recommend that you purchase an Integrated Shield Plan first. This is because regardless of which stage of life you are in, the additional coverage upgrade to Medishield life will be extremely helpful. What this upgrade does in a nutshell is that you pay a small sum every year out of cash and Medisave dont think too much about the latter for now to ensure that you can get the range of treatment that is most suitable for you. Common upgrade benefits include longer post hospitalization, higher medical limits, TCM [if you're into that[, etc.

      The rest of the plans, as much as I'd love to recommend them to you, are situational and potentially irrelevant. Typically I would advocate purchasing either insurance that provides for in incidence of Death or Critical Illness, with a ratio to your current salary. However, I do not know many things about you as well as your future plans: for example -

      How long will you be working for?: In my experience people who work out of ORD who didn't sign on are either saving up for university or have other plans for saving the money, or they may not opt to stay at that job for a long-term period. You may also be putting aside larger sums for your parents or financial emergencies.

      This is not to chatize you or make baseless assumptions. But a life insurance plan aside from the largely affordable medical and personal accident plans are intended for a lifelong commitment, even the Term Plans. I cannot make brash recommendations according to my conscience because you may end up in a situation where you take my advice or someone else's here, and then be unable to afford premiums later. So I really advise that you figure that out first.

      In the meantime, there are some articles on Seedly that may give you a bit more clarity.

      https://blog.seedly.sg/working-adults-what-are-the-key-insurance-policies-you-should-get-in-singapore/

      Prior to meeting your agent, some ideas can be found here.

      https://seedly.sg/questions/what-are-some-information-i-will-need-to-get-from-an-insurance-agent-from-our-first-meeting-looking-at-an-all-in-package-of-insurance-including-ci-tpd-whole-term-life

      Preferably, that agent is me. Just saying.

      Best of luck.

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    • Joash Chua
      11 Answers, 19 Upvotes
      Answered on 06 Jun 2018

      It is difficult for a young person like yourself who is just starting to enter into the working world to answer some questions which we financial consultants tend to ask. Questions like, what are your financial goals? Your dreams? Where do you see yourself in the future?

      Having gone through the stage in life which you are going through now, I know you probably wished you knew the answers yourself. But the fact is, you don't know where life is going to take you, and hence your answer will likely be the "best case scenario" - and we consultants sometimes will unfortunately take your answers at face value and make recommendations which, at the time made perfect sense. However life throws lemons at you and you have no choice later on but to make lemondaes with the policies/plans by terminating them.

      Start by asking yourself WHY you are doing what you are doing now - why are you working full time now? Is it to help support the family or to save up money so you can future your education? Why do you want to future your education and why did you decide on this degree? Asking yourself WHY will help you to understand how your choices came to be and it will inform you WHAT future choices will be open to you. When you do this, suddenly the fog clears and you have a road map for life which you never thought existed. Now, you are ready to talk about financial planning (insurance, investing for retirement etc.) because you can't plan no goal in mind

      Financial Planning is like Google Maps - it can only show you the best route if you know where you are going!

      This is my personal story: I used to be a cabin crew with SQ earning abot 4K a month. I just graduated from SMU with a degree in accountancy and I sure as hell didn't want to be an accountant. I went for the SQ interview with zero expectations and eventually I passed the interviews and enjoyed a career which paid very well compared to my peers. In my time as a crew, I never bought insurance and I didn't even know what insurance I had. I knew it is important to be insured, but KNOWING and actually BELIEVING are two very different things.

      Fast forward two years later, I joined the industry to increase my income potential because both my parents are barely insured themselves and I cannot afford to take care of them with just a 4k salary (cabin crew salaries stagnate) in the future. So the WHY that drove me was my parent's health in the future - with this I know what I must do to put this WHY to rest. As of now, I have 2 million in death coverage and TPD, 500K in CI and some others - and it doesnt bother me one bit how much i set aside to pay the premiums and I spend less on other things to make sure I always pay the premiums. By understanding the WHY behind my life choices, I found out what insurance is important for me and I will never have second thoughts if I'm spending too much.

      So my advice as a financial consultant is, let's not talk about WHAT insurance you should get. Let's talk about WHY you are working full-time?

      Cheers,

      Joash

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    Jim Ng, Insurance Premiums Reduction Specialist™ at SaveSmartSingapore.com

    Top Contributor (Nov)

    42 Answers, 85 Upvotes
    12 Nov 2018

    1. Hospitalisation plan , Integrated Shield Plan for your self coverage

    Protect your own income first before you think of your dependents. If you can't even protect your own wealth, how are you going to protect your loved ones?

    Compare between all the hospitalisation plans here:

    https://www.businesstimes.com.sg/brunch/the-good-the-bad-and-the-ugly-of-integrated-shield-plans

    2. For life insurance coverage if you have dependents:

    MINDEF/MHA Group Term Life since you're a guy.

    https://www.aviva.com.sg/en/mindef-and-mha/

    Arguably the cheapest Term Life Insurance availalble in the market right now.

    3. Critical Illness Insurance to protect your income in the event of critical illness

    Stand alone plans are better because it is not being tied to your term life insurance in the form of a rider. In the event that you cancel away your term life insurance, these plans are still actively protecting your income.

    Compare between the best critical illness insurance here:

    https://moneyline.sg/early-critical-illness/?gclid=Cj0KCQiAoJrfBRC0ARIsANqkS_6qrmOFZ_dJ6aqRt6Lo8EFOtVmOzYBBo0uMPN-4JLa0Z05mbTRWvJ8aArw0EALw_wcB

    Lastly, congratulations on your ORD and wishing you the best in your career.

    Cheers :)

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