Young Family
Prime A Better Future For Your Growing Family
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 so that your needs during recovery continue to be met.
- Financial payout for death, terminal illness, and total and permanent disability.
- Maternity insurance if you’re growing your family.
Wealth
You are likely to have taken on more financial demands such as a home mortgage, your children’s education, and retirement.
Your priority for wealth:
- Savings for immediate and future expenses.
- Retirement 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 accidents, death, terminal illness, and total and permanent disability.
- 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 9 (for death) or 4 (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 -
Maternity
Coverage for baby and mum.
It’s recommended to spend at most 15% of take-home pay on insurance protection.
Why Act Now
Health crises can cause income loss and depletion of family funds2.
Ensure either partner can sustain the family if the other faces an unfortunate event.
Misconceptions? Let’s correct them.
Misconception: My life insurance coverage only needs to be twice my annual salary.
In general, it’s recommended to have 9-10X your annual earnings as basic life coverage. However, this amount can vary depending on your family expenses and desired legacy, so it’s best to consult with a Financial Representative who can give you a plan that fits your needs.
Misconception: I am young and healthy, I don’t need insurance.
While this is true, it is also true that health issues can arise at any time, regardless of age. It’s also wise to lock in a lower premium at a younger age.*
Misconception: Health insurance is only for old people.
Health issues and accidents can happen to anyone at any age. While older people might be more prone to certain illnesses, it's important for everyone to have health insurance. If you wait until you're older, insurers might exclude pre-existing conditions. Protect yourself by getting coverage early on.
