- Protection for loss of income
Loss of Income - Protect the goose that lays the golden egg
All working adults are like goose that lay the golden eggs. We are able to
generate an income, as long as we are healthy.While many breadwinners work hard
to provide for their families, they often neglect to protect the goose that lays
the golden eggs. Many people may have some insurance, but often inadequate.The
goal of any insurance adviser is to ensure that if something should happen to
the goose, the dependants can still have the golden eggs for long enough to be
self sufficient. As a general guideline, most working adults should have life
insurance cover amounting to 3 to 10 times of their annual income. For singles
with no dependants, 3 to 5 times is a comfortable level. Married couples with
children will need a about 6-10 times of their annual income. So a married couple
earning an annual income of $50,000 should have life insurance cover between
$300,000 to $500,000. This will ensure that the family can survive about 10 to
15 years, if the insurance proceeds are invested to earn 3-5% p.a. Most people
would do well to have a basic whole life plan and complement this with riders
(low cost add ons).
For more information, please go to Protection
Policy
- Protection for major medical bills
Rising medical costs
If we have seen family members or relatives hospitalised, we would recognise
that the costs can be very high. All working adults will be the CPF Medisave
account for medical needs. However, this is often inadequate. We should have
medical insurance to take care of major hospital bills at low cost. A few insurers
offer medical plans that can be paid using the CPF Medisave. Incomeshield from
NTUC Income is the only plan that offers guaranteed lifetime coverage. It covers
major hospital bills. The policyholder has to take care of part of the hospital
bill using their Medisave. You can also consider other low cost hospital plans
using cash to cover the portion not covered by the CPF medical insurance schemes.
For more information, please go to Incomeshield
- Protection for housing and other big loans
Don't leave your home to the bank
One area we should protect is our major loans.
For most people, their housing loan is the major loan that they will take.
Ensure that you have adequate insurance to cover the loan in event of premature
death, disability or critical illness.
The most common type of insurance is the mortgage reducing plan. The coverage
reduces every year, in proportion to the housing loan being repaid.
It is very low cost and is very affordable to everyone.
By protecting your housing loan, you ensure that your house will go to your
family and not to the bank in the event of unexpected contingency.
For more information, please go to Mortgage Protection
- Protection for assets like car and house
Protecting your assets
Our house and car are major assets for most people. There are possibilities of
great financial loss if our car is stolen or our house is broken into. Other
than protecting ourselves and our loved ones, it is also important to protect
our key assets. Motor insurance is compulsory in Singapore and most parts of
the world. Some of the coverage includes loss of car, major repair costs and
injuries caused to third parties.
For more information, please go to Motor
Insurance
A typical home insurance plan covers damage due to specified perils like fire
and flooding. It also covers damages due to theft and injuries caused to third
parties.
For more information, please go to Home Insurance
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