Different stages of life call for different ways to approach choosing the insurance plans you need. With so many plans on the market, though, how do you know exactly what to get? We asked some insurance experts in town to offer advice on life and health insurance for three different scenarios.
#1 Insurance for … working adults
The team from Expat Insurance says:
“There is one type of policy that every working adult with dependents must tick the box for and that’s term life insurance. Term life insurance is inexpensive protective coverage that pays out upon death. It’s also the most widely used estate-planning tool because it’s suitable for all incomes and net worths. Term life insurance is best to get while you’re relatively young – you can purchase nearly $1 million in coverage for often less than $100 per month, with terms up to 35 years! While most employee benefits packages provide some level of life coverage, it’s usually nowhere enough for most young families who’ll need to cover one or two decades of expenses if the breadwinner is no longer around. Employee benefits are also not portable if you lose your job; however, if you buy a personal policy, it’s portable worldwide.
Term life insurance can be bought with riders that provide additional levels of insurance. The most common one is critical illness. Critical illness coverage kicks in when the policyholder comes down with one of 37 dreaded diseases such as cancer. It generally covers one to two years’ worth of living expenses. These are simple, easy to buy and very necessary policies that cost very little when it comes to being reassured in the event of an unexpected illness or death.”
#2 Insurance for … families
The team from Pacific Prime Singapore says:
“Maternity insurance is a given if you’re thinking about starting a family or adding to your brood. If you already have your health insurance plan settled, check if it has a family discount. Young families can save money by splitting between two plans, with an inpatient plan for one partner and a more comprehensive plan for the other partner and children. Since this depends on several factors, it’s best to ask your insurance broker which arrangement will make sense for your family. Once you have settled your health insurance, it’s advisable to review your need for life insurance or Accidental Death & Dismemberment (AD&D) insurance. These plans protect your family from loss of income, which is especially crucial if your household relies on a single income. Moreover, your life insurance should provide relief against outstanding debt such as mortgage and tuition.
Be sure to check your coverage carefully since some health insurance plans have an annual limit for health checks and/or vaccinations. Also, keep in mind that children typically require more outpatient services. Finally, your ideal insurance plan should provide direct billing access to your family doctor.”
#3 Insurance for … adults in their 50s and 60s
The team from UEX Global says:
“Not far off from your golden years? Once you turn 50, it will be too late to consider what to do to shield your health. The key is to anticipate to keep a peace of mind! Don’t wait for problems to surface before choosing health insurance. Your health condition is a major part of an insurer’s underwriting process (pre-existing conditions). If you’ve declared that you have serious health issues, you may be denied certain coverage, so it’s best to get coverage while you’re healthy.
So what exactly should you cover? You’ll be at a higher risk of critical illnesses such as cancer, heart attacks and strokes as you age. If you’re not covered for hospitalisation (at least), you could end up not being able to pay the bills. You might also want to cover optical and dental care as these expenses will increase as you get older. It’s also important to do regular health screenings to help you detect conditions even if you feel well. They can help you prevent excessive expenses on a disease that was detected late. Many international health insurance plans provide coverage for screenings.”
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