Finance should not be a barrier to starting out in life as an independent young adult, with a range of new experiences awaiting us. With the transitions into adult life, like many Singaporeans who like to be prepared we tend to consider a range of possible eventualities in our lives and like to feel that we have an adequate safety net if things go wrong.
Life insurance becomes a vital safety net that protects our family be it our parents for the singles or our spouse and children for the married when they need it the most. It can be tailored to suit our own requirements and may include a variety of policy options.
We suggest that indiviudal consider the different type of insurance in the following order describe below. The main reason we invest in health insurance first is so that we can protect our savings and experience maximum comfort if we were to fall ill.
| Rank | Type | Why | Recommended Cover |
|---|---|---|---|
| 1 | Health | · Covers Hospital and Surgical bills
· Provides outpatient care for cancer, renal dialysis and organ transplant | Private Hospital Level |
| 2 | Term/
Whole Life | · In the event of death, the sum assured gets paid to the beneficiar(ies) | 11 times your annual earning[1] |
| 3 | Critical Illness | · Reduce financial burden when diagnosed with major critical illness[2] | 3 to 5 times your annual earning |
| 4 | Endownment/
Investment linked | · To make your dreams a reality a lot sooner than you think | Create a specific goal that is measureable and attainable |
| 5 | Personal Accident | · Covers all kind of accident, whether major or minor | As required bearing in mind, payout is on a reinbursement basis |
[1] http://www.lia.org.sg/consumers/faq
[2] http://www.lia.org.sg/node/3917
Please note:
The information contained in this article is for general guidance on matters of interest only. While we made every attempt to ensure that the information contained herein has been obtained from reliable sources, we are not responsible for any errors or omissions, or for the results obtained from the use of this information. Neither the information presented nor any opnion expressed constitues a solication for the purchase or sale of any financial products. As such, before taking any action you should seek advice from an independent professional advisor.
