For most of us, family means the world. As such, you would want to take every measure to ensure that they stay protected against the many uncertainties in life. One of the ways in which we can protect our loved ones is by having their life insured. Insurance plans help to safeguard our loved ones by making sure they have the finances to tide through tough times. With that in mind, here are 4 insurance plans that you should consider taking to safeguard your family’s future.
1. Health insurance
As Singapore citizens, you and your family are covered by MediShield Life. You enjoy that coverage even as a Permanent Resident. However, it is important to note that MediShield Life has limitations in terms of coverage. If you want a better grade of hospital ward or access to a higher policy coverage limit, you might want to opt for an Integrated Shield Plan.
Some of the better Integrated Shield Plan options offer coverage that goes as high as SGD1.2 million per year. A higher policy coverage limit can be helpful given the rising costs of healthcare in Singapore. It would be wise to have access to a larger amount for coverage, just in case the need arises. Apart from the higher coverage limit, an Integrated Shield Plan also provides many other benefits such as:
✓ Pre-hospitalisation and post-hospitalisation expenses (usually around 180 days and 365 days respectively)
✓ Coverage for planned and emergency overseas treatment
✓ Access to a wide range of private and restructured hospitals
Look into getting an Integrated Shield Plan for all your family members so that they have access to the best in healthcare without worry. Insurers sometimes run promotions for their health insurance, and you can even get an instant quote online now.
2. Personal accident insurance
A personal accident insurance plan covers you against accidental death and injuries. The benefits will only be payable upon the occurrence of an accident. In addition to this, a good personal accident insurance plan will also cover you against:
✓ Food poisoning
✓ Food poisoning
✓ Animal and insect bites
✓ Infectious diseases like hand, foot, and mouth disease (HFMD)
As accidents can happen to anyone, you might want to consider getting a personal accident insurance plan for your family members. Accident plans are usually quite affordable, you can also get a quote easily online now.
3. Life insurance
Life insurance is extremely important. If you don’t already have life insurance, it is advisable that you look into getting coverage immediately. The payout from a life insurance plan will help your family stay financially afloat if something unforeseen happens to you. This payout will be especially helpful if you are the primary or sole breadwinner of your family.
There are two main types of life insurance – whole life insurance and term life insurance. A whole life insurance plan typically covers you for the entirety of your life against death, terminal illness and total permanent disability. A term life insurance plan covers you for a pre-decided term against death, terminal illness, and total permanent disability. Each of these two forms of life insurance has its own unique benefits; a financial consultant can help you understand which one would suit your needs better, and also advise available supplementary benefits options that provide additional coverage against critical illnesses and more.
4. Critical illness insurance
A critical illness cover provides a lump sum payout when you are diagnosed with a critical illness. LIA Singapore has outlined 37 critical illnesses that need to be covered in critical illness insurance plans in the country. Some of these illnesses include:
✓ Major cancer
✓ Major burns
✓ End stage lung disease
✓ Multiple sclerosis
✓ Progressive Scleroderma
✓ Primary Pulmonary Hypertension
✓ Muscular Dystrophy
The payout received can be used by the insured individual for any purpose they deem suitable. Some may decide to stop work while receiving treatment for critical illnesses. During that time, the payout from this form of insurance can be used to run the home. It can be used to pay the rent, put food on the table, afford children’s school fees, and so on.
You may need help in deciding between a term life insurance plan or a whole life insurance plan when buying life insurance. Professional guidance and service can help you get the protection and peace of mind you and your family needs. Consider getting in touch with a Prudential Financial Consultant for further help in selecting an insurance plan.
Sources:
1Subject to reduction in benefits from 25% to 50%.
Disclaimer
This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Financial Consultant before making a commitment to purchase a policy.
As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid
Some products have no savings or investment feature, there is no cash value if the policy ends or if the policy is terminated prematurely.
Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs.
Premiums are not guaranteed and may be adjusted based on future claims experience.
The information contained on this article is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
Information is correct as at 1 June 2021.
This advertisement has not been reviewed by the Monetary Authority of Singapore.