Predicting the future is impossible. But preparing for it? Well, that’s easy, especially in the financial sense! All you have to do is add the right insurance and savings plans to your investment portfolio. This willhelp you be preparedfor that moment when life throws you a curveball.
However, choosing the right plans can be tricky, especially with so many types of insurance available to you today. This is where the following article can help — it will highlight 4 types of insurance plans that can be extremely helpful for working Singaporeans like you.
Healthcare in Singapore is expensive. Thankfully, all Singaporean citizens and PRS are covered by MediShield Life. This is a basic health insurance policy administered by the government of Singapore that covers your stay in public hospitals in B2/C-type wards up to an annual limit of S$ 100,000 per year.
While this coverage is extremely beneficial, it is also very basic. Treatment in private hospitals, pre & post-hospitalization expenses, and any costs beyond the plan’s annual coverage of S$ 100,000 are excluded from the coverage of MediShield Life.
This is why most Singaporeans complement their MediShield Life with a private medical insurance policy, a.k.a. an Integrated Shield Plan. These plans offer significantly higher annual cover amounts, up to S$ 1.2 million in some cases. They will also offer pre- & post-hospitalization cover and pay for up to 95% of your hospital bill.
There has been a sharp rise in the number of critical illness cases in Singapore. These illnesses require prolonged treatment, the costs of which often overshoot the coverage of your health insurance policy.
Take for example cancer –expensive care, multiple rounds of treatment and the loss of income can make it extremely hard to deal with. Even with health insurance, most of us have an average coverage gap of about $250,000.
However, with cancer insurance, you can get protection up to age 100 and enjoy a sum assured up to $ 300,000! The best part is, this coverage can cost as little as $46 a month!
Besides for cancer, most critical illness plans also coverage for 35+ other major conditions including heart attack, and kidney failure. They will offer a payout in the early, intermediate, or late stages of the illnesses, depending on your plan. Some plans will also cover the loss of income during hospitalization and recovery.
Moreover, unlike a health insurance policy, the payout from a critical illness is not limited to medical expenses. It can be used to cover any financial gaps that arise during your battle with a critical illness. This makes it a little easier for you to tide over a financially difficult time.
A study by the Life Insurance Association of Singapore showed that 4 out of 5 Singaporeans experience a gap in critical illness protection. This means that a whopping 80% of the population is not prepared to handle the costs of a major illness. Fortunately, to get into the 20% population that has this aspect covered, all you have to do is get yourself a good critical illness insurance plan.
Having term life insurance is crucial if the needs of others depend on your income. Therefore, if you have children, a non-earning spouse, or provide for your aging parents, you need to get a term life insurance policy.
In the event of an unfortunate life event or if you become totally &permanently disabled, a term life insurance plan will provide your loved ones with a sizeable payout. This will ensure that your dependents are covered for their day-to-day living expenses. It will also take care of your outstanding financial obligations, and ensure your family can achieve their goals in the absence of your income.
Even if you are single and have no dependents, the payout of a life insurance policy can be used to cover your final expenses and any debts that will otherwise be passed on to your next of kin.
4. Whole of life insurance:
Unlike term plans that provide coverage for a specific tenure, whole life insurance provides the policyholder with coverage for their entire life. In addition to this, whole life insurance also accumulates cash value that is payable should you decide to surrender the policy.
Some of the leading whole life plans also offer a great deal of flexibility. You can choose premium payment terms ranging from 5 to 35 years. You can also boost the coverage of the plan up to 5 times to meet your evolving needs. These plans will also provide coverage against terminal illness, total and permanent disability and critical illnesses.
These were 4 of the most important insurance plans for working Singaporeans. We hope this information has been helpful for you, good luck and all the best.
