You are now reading:
Insurance needs at different life stages
In life, we go through different stages – from being a child to an adult, to getting married and then someday retiring and enjoying a slower pace in life. At every stage, we should ensure that we are adequately insured so that we are protected from any unforeseen circumstances.
Young & single
As a young adult, fresh out of school and starting my first job, one of my biggest concerns was getting myself insured against unforeseen accidents. Medical bills in Singapore can be costly, and with my modest salary, could put me into debt if I was not adequately insured against large medical bills. Therefore, my priority was to first secure a good medical insurance plan.
After saving and building an emergency fund to cover a few months’ worth of living expenses, and with enough budgeted for other expenses, I started finding out more about life insurance policies. There are whole life plans, investment-linked plans, and term life policies that can offer different coverage options, each with their own pros and cons. It is essential for each individual to review their specific needs to determine the right plan. Eventually, I chose an affordable whole life insurance policy that included coverage for critical illness as well as total and permanent disability, with the intention to add more coverage as my income rises.
Married with dependents
When I became a mother to a delightful little boy, I felt an urgent need to protect him as well. Once he was eligible, we purchased a hospitalisation plan for him. This decision was reinforced by a friend's experience; her child was diagnosed with cancer before turning two. Without insurance, she would have faced enormous medical bills for various treatments and lengthy hospital stays. Moreover, her child would have been unable to purchase additional plans due to pre-existing conditions. Thus, the lesson was clear: get insured as early as possible.
Once my child's hospitalisation plan was secured, we budgeted for a life insurance policy with critical illness coverage.
Preparing for retirement
As we progress through life, it is natural to start thinking about and preparing for retirement. With the average life expectancy for both males and females in Singapore at 83 years1, we need funds to support ourselves for a good 20 years of retirement if we stop working in our sixties. Even if we retire at a later age or intend to continue working during our retirement years, we can never be certain of what life might throw at us. Health issues can stop us from working but bills will still need to be paid.
One way to prepare for such scenarios is by joining CareShield Life2, a long-term care insurance scheme that provides basic financial support if we develop severe disabilities, especially in old age. To enhance coverage, you can complement your basic CareShield Life plan with supplementary plans offered by selected private insurers.
In summary, every individual has different protection needs and therefore requires varying levels of insurance coverage. Our needs, along with our coverage, will evolve at different life stages. It is prudent to continuously review our existing policies to ensure adequate protection throughout life.
Important Notice and Disclaimers:
Buying a life insurance policy is a long term commitment. An early termination of the policy usually involves high costs and the surrender value payable (if any) may be less than the total premiums paid. Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. This marketing material is not a contract of assurance nor is it intended as an offer or recommendation with respect to the purchase or sale of the above products. Acceptance of the proposal is subject to underwriting. The precise terms and conditions of the above products are specified in the policy. The above is for general information only and does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You may wish to seek advice from a financial adviser before making a commitment to purchase these products. In the event that you choose not to seek advice from a financial adviser, you should consider carefully whether the products are suitable for you. United Overseas Bank Limited does not hold itself out to be an insurer or insurance broker.
