After reading through the posts in a thread on a popular forum in Singapore, I realise that quite a few people are having difficulties in deciding which kind of plan suits them. Maybe I’ll just chip in a little as a simple guide in a financial consultant capacity. A small disclaimer that this is my personal recommendation and may not suit everyone.
Typically for one who has little to no insurance coverage and has just started working, I’ll tend to recommend 3 essential type of product to them. The first would be a term policy which offers high coverage with little premium required. For guys serving NS, I’ll highly recommend the Aviva SAF Group term policy. The reason for this is for a sum assured of $125,000, you just need to pay about $16 per month. However, some years they’ll declare dividends in which they will credit back some cash to you. The drawback of this plan is that you’ll not get anything in return unless in death.
The 2nd product would be a comprehensive Shield plan. The reason for this is to cover your medical expenses should you require treatment. Here I’ll recommend taking up the PruShield A Premier with Extra plan from Prudential as this covers your medical expenses from the 1st dollar to the last if you are warded to either a private or restructured hospital. By taking up this plan, you’ll essentially remove the worry of wondering if you should seek treatment due to cost. For young adults, this will also remove the burden on your parents should you require treatment. The drawback of this plan however is the premiums are much higher in your later years.
The 3rd product would be a Critical Illness plan. This plan would give you immediate cash should you contract the stipulated critical illness. This plan has been around in the market for awhile and many people would have gotten this plan to cover themselves for treatment. However, due to the introduction of the comprehensive shield plan, the strategy to be taken has changed in the sense that one would rely on the shield plan to cover the medical expenses while the payout from a critical illness plan would provide cash for daily living expenses. This approach would allow an individual to have the most chance of recovery as the need to continue working would be removed. The drawback of this plan is the higher premium cost. By taking this basic approach, you will be pretty much covered for any unfortunate events. If after getting these 3 basic plans, you have spare cash, then you can start thinking about saving plans or ILPs to generate wealth and provide higher returns on your hard earned cash.
As mentioned earlier, this is a very simple guide and it may not suit everyone. If you require more advice, you can email or contact me on my mobile and we can discuss further or you can contact your exisiting financial consultant to get more information.
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