Caring For Elderly Parents Or Children
Protecting Your Family’s Tomorrow
Protection
In the event of unexpected circumstances such as critical illnesses, accidents or death, at least one or more dependants may be impacted.
Your priority for protection:
- Health insurance for hospitalisation.
- Protection against accidents and major illnesses.
- Financial payout for death, terminal illness, and total and permanent disability.
Wealth
Growing your wealth gets even more pivotal to upkeep your standard of living and achieve your future goals when you have multiple dependants.
Your priority for wealth:
- Savings for immediate and future expenses.
- A retirement plan.
- Legacy planning.
For Your Dependants
Protecting your loved ones from the unexpected can allow you to focus on your responsibilities without constant worry.
Your priority for your dependants:
- Health insurance for hospitalisation.
- Protection against major illnesses, death, total and permanent disability, and accidents.
- Care plan for your parents.
Protection
If you are a Singaporean or PR, you’re automatically covered by three national schemes:
-
MediSave
A national savings scheme which helps CPF members save for future medical expenses, especially during retirement. -
MediShield Life
A health insurance for large hospital bills and selected outpatient treatment costs. -
CareShield Life
Long-term care insurance scheme for financial support and monthly cash payouts in event of severe disability.
Are you fully prepared for life's surprises with your current protection policies? It's crucial to ensure you have enough coverage to avoid a protection gap – when your savings, investments, and insurance fall short of covering unexpected expenses due to health issues.
Here's how to find out your protection gap3:
- Calculate Needs: Multiply your annual income by nine (for death) or four (for critical illness)2. This is what your family will need to manage without your income.
- Assess Resources: Add up your savings, assets, and current coverage. These are the funds available to your family.
- Find The Gap: Subtract the needs from the resources.
If the result is negative, there's a protection gap. This means your family might struggle financially if something happens to you.
National schemes do not fully cover:
-
Hospitalisation
An Integrated Shield Plan (IP) provides additional coverage for private hospitals or higher ward classes in public hospitals. -
Critical Illness
You’ll need coverage of 4x annual income. (Recommended)4 -
Death & Total and Permanent Disability
You’ll need coverage of 9 – 10x annual income. (Recommended)4
It’s recommended to spend at most 15% of take-home pay on insurance protection.
Why Act Now
Youth often means better health, allowing higher insurance coverage at lower premiums.
A sudden hospital visit can drain your savings, hindering financial progress.
Life's unpredictability can severely impact loved ones if you pass away prematurely.
Misconceptions? Let’s correct them.
Misconception: It’s okay not to disclose your existing medical condition.
It's best to be open about your pre-existing medical conditions. Hiding them could result in claim rejections or even a terminated plan if discovered. Having pre-existing conditions doesn’t mean you can’t get insured in Singapore; it just means there might be some extra considerations for coverage and premiums.
Misconception: I am not eligible for insurance because I am too old or have a pre-existing condition.
You can still purchase health and/or life insurance in Singapore, though some additional considerations will be factored in due to age or pre-existing conditions. There are specialised plans so it’s best to consult a Financial Representative to understand what’s best for your condition, age and financial goals!
Misconception: Having health insurance means all treatments are fully covered.
Not always. Policies can have limits, gaps, and exclusions. It's a good idea to review your coverage, spot any gaps, and consider extra insurance or add-ons based on your health and family history to avoid unexpected medical bills.
