Anonymous
My parents (52 & 53) are only covered with NTUC hospitalization plan. For context, they only have each other as dependents as my sister and I are working adults already. They have a house that has not been fully paid for and limited cash savings. I'm not sure what additional insurance I should get for them. Please advise.
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Elijah Lee
01 Nov 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
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Hariz Arthur Maloy
01 Nov 2019
Independent Financial Advisor at Promiseland Independent
Hey Anon, here could be some areas you could consider.
1) If they're staying in an HDB, they should have the Home Protection Scheme which is mortgage term insurance policy that pays for any remaining mortgage balance in the event of the death of the homeowner. So no additional life insurance is required to cover this liability.
2) For healthcare costs, their NTUC shield plan would be sufficient if they maintain paying premiums. But you do need to plan for increasing costs of the policy and its rider. If they're on the old 100% claimable plan, they may want to consider the newer 95% plan to reduce premiums.
3) The next area of consideration would be long term care and disability. Should any of them be disabled and require care for nursing, there will be an additional cost of living incurred. Thankfully, in Singapore, we have the Eldershield scheme which would pay either $300/mth for 60 months or $400/mth for 72 months depending on which scheme they are on. However, this is grossly insufficient. You may want to upgrade their Eldershield with a supplementary plan from either Aviva, Great Eastern, or NTUC to get a higher payout of closer to $1.5-$2k for life. This is my biggest area of focus for my career.
4) Next would be retirement planning or income planning once they stop work. This would start with CPF and CPF Life, and then if you require more, consider getting an annuity or a retirement income plan from an insurer to supplement this need for income in old age.
5) Lastly, an accident plan. As they grow older, they may be frailer and prone to injuries. And not all accidents would result in hospitalization. So a good accident plan to cover for medical reimbursements and support for temporary disability may be ideal.
You may be interested to speak to an Independent Financial Advisor Rep to help with planning for your parents. It would be good for you to have a clearer picture first before getting your parents involved in the process.
95% of my clients are Singaporeans in their 40s and early 50s and I focus on exactly the areas covered above. If you're interested to speak with me regarding this, I'm available via FB messenger or via my email: [email protected]
I hope this has been helpful. :)
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Kelly Trinh
01 Nov 2019
Backoffice technical at financial services firm
Need a bit more info to really give a good answer but for barebones things to consider:
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Hi anon,
Based on the information you provided, you'll have to look at the following:
Feel free to reply if you have further queries or need clarification on any of the points.