Buying insurance is one of the most important financial decisions you will ever make. And, the best time to buy insurance is at the start of your career. When you are young, your insurance premiums will most likely be much cheaper. With fewer responsibilities on your plate, you will be able to focus your finances on getting the right coverage.
This brings us to the question – what constitutes as right coverage?
It is important to not just buy insurance but also to buy the right insurance. To help you out, we have listed down 5 important insurance policies that you might want to consider as a working adult in Singapore. Let’s take a look –
- Integrated Shield Plan
As a Singaporean citizen or PR, you have coverage from MediShield Life. However, you can enhance your health insurance coverage with an Integrated Shield Plan. An Integrated Shield Plan can give you annual coverage of up to S$1.2 million as well as coverage for pre- and post-hospitalisation charges. You can even add riders that can give you coverage of up to 95% of your medical expenses.
- Whole life or term insurance
Whole life insurance and term insurance both cover you for death, terminal illness, and total permanent disability. Whole life insurance covers you for the whole of your life and can accumulate cash value. A term plan has no cash value and covers you for a fixed duration as selected by you. You also get the option of adding coverage for critical illnesses as a rider. The payout will help provide for your loved ones if something unforeseen happens to you. You need to choose a sum assured that will cover any existing debt, mortgages, and your family’s yearly expenses.
- Critical illness insurance (or cancer insurance)
Critical illness insurance pays you a lump sum if you are diagnosed with critical illnesses such as heart attacks of a specified severity, end stage lung disease, end stage liver disease, primary pulmonary hypertension, and cancer, among other serious health complications. You can use this payout for a range of expenses that you face during your illness, such as your medical expenses that are not covered by health insurance, home rent or mortgage costs, daily expenses, and the salary of a domestic worker. You may also opt for a cancer insurance plan which will pay you a lump sum benefit exclusively for a diagnosis of cancer.
- Personal accident insurance
A personal accident insurance plan will cover you against those sudden unforeseen accidents that can leave you injured or even prove fatal. This insurance plan may also cover infectious diseases (such as hand, foot, and mouth disease, dengue fever), high risk activities, and insect and animal bites. As these accidents can often lead to unwanted but necessary expenses, having this form of coverage can prove to be helpful.
- Savings insurance plan
Finally when you are done with getting the protection you need from insurance, you can plan for your financial goals as well. You can opt for an insurance savings plan to build a corpus of funds for the future. This plan also comes with a death benefit so your loved ones get a payout if something unfortunate happens to you. You can take an insurance savings plan to gather funds for specific financial goals – such as your child’s university fees – or even your retirement.
For help in selecting an insurance plan specific to your needs and goals, do reach out to a financial consultant. We hope that this article has been an insightful read.