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 run through some common scenarios and get some finance and insurance experts in town to offer some advice on life and health insurance.
Scenario 1: Woman with a family history of cancer or heart disease
Pacific Prime recommends: Critical illness insurance
What does it include?
Upon diagnosis of one of over 30 major illnesses covered by a critical illness plan – stroke or cancer, for example – the policyholder will receive a large sum pay-out. These funds can be used to pay for medical treatment if needed. A great thing about coverage like this is that it also accounts for non-medical aspects such as making up for loss of income, or improvements you might make to your home to enhance your quality of life with your particular illness.
Why get it?
While a standard individual health insurance plan with inpatient and outpatient coverage will undoubtedly be able to address conditions like these up to a particular policy’s limits, it will only address the costs of associated medical treatments. As many expats are already covered with such coverage by their employers, they may want to consider this as an add-on.
Handy tip
Don’t delay in obtaining insurance; if a disease of this kind has already developed, it may be too late to obtain any coverage for it at all, as it may be considered as a pre-existing condition!
Pacific Prime Singapore
18 Cross Street, China Square Central, #14-05
6346 3781 | pacificprime.sg
Scenario 2: Family that moves frequently to new expat postings
Chartwell Associates recommends: Life insurance, particularly term assurance
What does it include?
Term assurance provides protection only and doesn’t have a savings element, unlike a whole life insurance plan. It’s best to separate the protection element of insurance from savings because returns from whole life savings are low. If you’re internationally mobile, select one that has global benefits.
Why get it?
For couples with children, where livelihood is dependent on one or both spouse’s ability to earn, life insurance is important. It ensures that your family will be well taken care of financially if you pass away prematurely.
Handy tip
How much to insure yourself or your spouse should be calculated based on your situation and long-term needs. Chartwell Associates can help with this. If the plan is to provide a lump sum for a spouse or partner, then they should own the policy. This will ensure prompt payment and the money not getting held up in probate of the deceased. For children, it should be written into their trust in case both spouses die together. It’s also important to have a current and up-to-date will.
Chartwell Associates
48A Circular Road
6225 5707 | chartwell-associates.com
Scenario 3: Couple with young children or teens
APRIL International recommends: Comprehensive health insurance plan (including inpatient, outpatient and dental)
What does it include?
While needs may vary depending on your children’s ages, there are a couple of items every family should consider to include in their health insurance coverage. Some plans cover specialists’ fees for both inpatient and outpatient care, which can be a helpful option to have considering the expense involved. Others include outpatient coverage for vaccinations – great for families with young children, but also good for covering flu vaccinations for adults. It’s crucial that dental coverage includes orthodontics (particularly helpful for teenagers) and other common dental procedures such as wisdom tooth surgery.
Why get it?
Whether it’s a routine blood test or a CAT scan, healthcare costs for an entire family can add up quickly over the year. Also, if there’s an unexpected injury or illness that requires hospitalisation or major surgery, this kind of plan is heaven-sent. Make sure your plan covers what you and your family need.
Handy tip
Check whether everyone in the family requires the same level of coverage as parents may only need a top-up.
APRIL Singapore Pte Ltd
6736 0057 | sg.april-international.com
Scenario 4: Young couple planning on starting a family
Expat Insurance recommends: Term life insurance
What does it include?
A term life insurance policy covers life and will pay out an agreed upon lump sum of money to your family if you pass away or become permanently disabled or contract a terminal illness. The policy does not accumulate any cash value and is portable. You’re able to select the term duration and the amount of coverage. This can be modified along the years as needs and circumstances change. For globally mobile expats, it might be worth considering purchasing insurance plans that you can take along to your next posting.
Why get it?
It’s important to consider this type of life insurance as it can cover your family financially in the event that something happens to you – particularly if you are the sole breadwinner.
Handy tip
Take note of how much it would cost to keep paying your bills if your income were no longer available to you; mortgages, school fees, rent and daily expenditures – they all add up over time. This will help you decide on an appropriate amount for your policy’s coverage.
Expat Insurance
6401 9201 | expatinsurance.com.sg
Scenario 5: Couple that travels frequently
FWD recommends: Annual travel insurance
What does it include?
In addition to the other benefits that travel insurance provides, some insurers, such as FWD, offer an unlimited medical evacuation benefit. If you find yourself with a life-threatening medical condition, either through suffering an unexpected illness or an injury on a trip, you’ll be sent to a nearby quality medical facility for treatment, no matter how remote the location and no matter what the cost. Some plans also include an additional medical expenses benefit that covers the cost of the subsequent treatment, providing you with that all-important peace of mind while travelling.
Why get it?
As a frequent traveller, it’s more economical to purchase an annual travel plan rather than a series of single trip plans each time you leave the country. This can be of great value if you travel three or more times each year.
Handy tip
Annual travel insurance covers a maximum stay of 90 days per trip. So, if you’re looking for longer medical coverage, you may want to check out an International Health plan.
FWD Singapore
6820 8888 | fwd.com.sg
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