So many insurance (plans) in the market today? Which one is suitable for me? Why do I need them?
Depending on life situations and requirements, one must plan for some of the most basic insurance plans to protect against high costs of medical bills, have financial payouts to cover for periods where one is unable to work due to illness or accident, or simply to leave behind a lump sum for the next of kins to offset any expenses or outstanding home loans of the surviving family members.
PROTECTION:
Clients may get confused with a plethora of products and ask “why so many plans? Shouldn’t I just get one and be over and done with the one plan?”
While administratively it seems like a no brainer to only manage 1 plan from 1 insurer – Standalone plans are essential, in order to prepare where market and insurance conditions changes, the person can actually adjust their protection and coverage without affecting their other insurance protection coverage. Example, you can choose to increase your Personal Accident coverage by adding a new PA plan, while not affecting your term insurance coverage or premiums.
Term insurance – minimally for $1Mil-$2Mil coverage as most insurance offer large sum discount after a certain Sum Assured. Term plan are typically more cost effective than a Whole of Life plan, and covers Death and/or Total Permanent Disability (TPD). One thing to note that if the policyholder live till the end of the term of the policy, the policy terminates and there is no cash benefit or cash values. It is really to provide death benefits, for the policyholder’s next of kins to offset existing or outstanding loans and bills prior to the demise of the policyholder.
Critical Illness – it is recommended to obtain one that covers all stages from Early CI to Advance Stage CI, without the need to cancel or terminate the policies upon occurrences.
Personal Accident – minimally $1million. Why? You want to ensure that in the event you have an accident which result in permanent loss of limb or body parts such as Finger(s) or Toe(s), you are covered to a suitable amount as most people might have challenges being employed or work after their recuperation period. You can say this is to cover the rest of their daily lives expenses, activities etc, should they suffer from permanent bodily injuries.
Disability Income – covers $x000 per month in the event of a accident that cause the member to not be able to work. This plan will help to defray the monthly cost and expenses while the person is recuperating from an accidents. This differ from Personal Accident where it is a 1 time payout.
Shield Plan – covers hospitalisation, treatments and surgeries based on the person’s plan limits. Riders are optional but would be recommended to cover any potential hefty deductible and co-insurance in the events of large hospital bill sizes.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
🌍 Judy Lang: Your Go-To for Global Insurance, Investments & Retirement Planning 💼
Hi there! I’m Judy Lang from Financial Alliance, the largest independent financial advisory firm in Singapore. With over ten years in the field, I specialize in international medical insurance, investment advice, retirement planning, and comprehensive financial planning.
When we first meet, I’ll give you a quick rundown of my F.I.T. (Financial Management, Insurance Planning, and Transfer of Wealth) programme. It’s a simple checklist to help you reach your financial goals:
Financial Management: We start by setting clear goals using our interactive Planner Calculator to figure out how much and how long it’ll take to reach them. Then we create a plan based on your current net worth and savings.
Insurance Planning: We make sure you’re covered for major health events like hospitalisation, critical illness, and disabilities. We ask, “How long do you want to be covered for?”
Transfer of Wealth: We help you plan how to distribute your assets to loved ones through wills, trusts, lasting power of attorney, and CPF nominations.
Staying F.I.T. means regular check-ins to ensure you’re on track and making adjustments as needed. I’m here to guide you on your journey to becoming financially FIT.
Ready to secure your future with confidence? Let’s connect! Drop me a message, and let’s chat about turning your insurance, investment, and retirement planning needs into success stories.
