25 or retiring – a financial plan matters!

Whatever stage you’re at – getting married, having a baby or planning for retirement – it’s important to make a financial plan that sets you up for life’s expenses. Here we take a look at the offerings of Tokio Marine Life Insurance Singapore (TMLS), whose range of insurance plans can help you be financially ready for different milestones.

The approach

The team at TMLS looks at creating products which are based on the hierarchy of needs. Everyone should preferably first began with the most basic protection needs such as life insurance, critical insurance and hospitalisation insurance. Once that’s settled, you should think about asset building, where you save, accumulate and invest for the next important milestone or even start planning for your retirement. Finally, once these other issues are settled, you can start looking at solutions to help preserve your wealth.

TMLS works with a number of financial advisory firms in Singapore, such as  AAM Advisory. Rebecca Regan is the latter’s Senior Vice President of Wealth Advisory and Protection. Here she offers some helpful tips and queries for expats at different stages of their lives and careers.

The new-to-Singapore (or soon to move!) expat

Think about your current financial situation: your income, outgoings, assets currently in place, and liabilities such as loans and mortgages. Essentially, note what you want from your financial future. Are you looking at your expat posting as a time when you might save for a down payment on a property? Or are you looking further ahead and starting to plan for a comfortable retirement? (Keen to buy a boat, perhaps!)

Young expats (25 to 35)

Concentrate on clearing any expensive debt accumulated during your student years, including student loans, credit cards and store cards. This requires discipline, but it’s good to clear the decks.

Once your debts are sorted out, think about building a cash “buffer” for emergencies. Typically, this should be three to six months of your salary. Having this on hand allows you to cover unexpected costs such as emergency medical procedures, prolonged sickness leave and family support.

Look at the cost of insuring yourself properly – good health insurance could potentially save you a fortune in Singapore. Critical illness cover and income protection are also great ways to insure your income flow. Life insurance is often sometimes overlooked at this age, as you may not have dependents or a mortgage. But life changes at a rapid pace. The younger you settle life cover, the more money you can save. You may find the cost will be considerably lower than waiting until your late 30s or early 40s.

The expat planning their retirement while in Singapore

Ask yourself what the retirement picture looks like for you: Where will you be? Still in Singapore or elsewhere? Do you own a property in the other place, or would you be happy to rent? Are all your debts cleared? Are your children financially independent?

When you have answers to these questions, engage a financial advisor to help you find a solution provider. Expats need flexible plans that work across international jurisdictions. Will your solution be available in different currencies? Is the company safe and reputable? Is there a consideration for a change in your tolerance to risk? Any change in your circumstances?

The policies

Here’s a rundown of some popular Tokio Marine policies, and who they can best benefit.

TM Care & Health Plan

This plan is great for highly mobile individuals who would like to have medical protection locally and abroad. There are different options available that cater to individuals at different stages of their life. Features include:

• Cover for inpatient, outpatient, maternity, dental and vision, assistance with medical evacuation and repatriation benefits
• World-wide medical coverage, including emergency treatment for up to 90 consecutive days within area of cover selected
• Cashless medical services across network of medical providers
• Ability to function as a top up medical plan to provide additional protection to fill in the gaps in existing coverage
• Portability; option to purchase an individual plan with no underwriting after just two years of coverage with the group plan
• Claims reimbursement within three to five working days
• Multi-language client service team located in Singapore
• Handy digital tools to ease management of the healthcare plan, including electronic cards and e-claiming

TM Term Assure

This life insurance plan provides coverage against death, terminal illness, total and permanent disability, and critical illness.

TM Atlas Wealth

This investment-linked insurance policy allows you to save for your children’s education, for a big purchase in your home country and for retirement. It provides flexibility and access to liquidity.

TM Apex VIP

This single premium US dollar investment-linked policy pays out the highest monthly value of the policy at age 99 or in the event of death. 100% of the premiums will be allocated to a well-diversified portfolio that is regularly rebalanced based on market developments. This plan can be used as part of of your estate planning strategy to ensure that your wealth carries through to the next generation and beyond.

Need more help?

Different stages of life bring different financial needs. It’s always best to seek professional advice from financial advisors such as AAM Advisory who can recommend plans and solutions to suit you and your family’s needs. Email Rebecca Regan at rebecca.regan@aam-advisory.com to find out more.

Written in collaboration with
Tokio Marine
tokiomarine.com

Read more about living in Singapore:
The expat’s guide to where to live in Singapore
Starting a business in Singapore

This information in the article is not intended as an offer or recommendation to the purchase of any insurance plan. It does not have regard to your financial situation, specific investment objectives and any of your particular needs. Kindly obtain the required product disclosures and seek advice from a financial adviser before making a commitment to purchase any insurance plans. The information has not been reviewed by the Monetary Authority of Singapore. Protected up to specified limits by SDIC.