Asked by Anonymous
Asked on 07 Nov 2018
As a fresh grad, focus on the most important insurance first
(1) Hospitalisation insurance. Its cheap, and most likely the possible wealth killer if you ever got into accident or fall very sick.
(2) A Whole Life insurance with Critical illness cover (Early CI) (please check the conditions covered). possible
(3) Term insurance for the rest for the coverage gap needed. You still have time to think through until you reach 30, but please do some scenario planning. (out of job, going to married, housing, baby?). these milestone will change the coverage you need. I opted for max coverage first.
(4) Disability insurance. Something which is good to have imo unless you are earning at least $6,000.00 per month (which may make sense to insure since no job can pay you $6k easily, if you got involved in accident etc).
(5) Accident policy. Good to have to top it up in case your TPD is a result from the accident.
You need hospitalisation insurance the most. The rest needs further anaylsis before it is a want or a need.
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:
2. For life insurance coverage if you have dependents:
MINDEF/MHA Group Term Life if you're a guy.
Term Life Insurance from SingLife if you're a girl.
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:
Lastly, congratulations on your graduation and wishing you the best in your career.
I am not a big believer of buying life insurance or ILPs. I believe in Term Insurance with adequate coverage, one should focus on investments. Do not mix protection with growing wealth. Once I have become comfortable financially, I will kill all my insurance plans (which I have already done at this point of time).
Top Contributor (Jun)
Once you're employed you should look at:
Ugrading your Medishield Life to an Integrated Shield Plan for Private Hospital Stay
10 Years of your annual income as Life Insurance for death cover
3 to 5 Years of your annual income as Income Protection in the event of Critical Illness.
I would tag the CI Cover on a whole life and the rest as Term till Retirement Age.