3 Types Of Insurance You Must Have To Not Go Broke In Singapore!
Updated: May 13
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Let us talk about the three types of insurance you MUST HAVE to guarantee that you don’t go poor while pursuing your financial goals.
The first insurance you need to purchase is hospitalization insurance (Integrated shield plan with Rider) that covers and provides for your hospital expenses. This will ensure that you are protected from any unexpected hospital bills that will definitely occur throughout your lifetime and may cripple your finances regardless of which life stage you may be at.
Read more: Why You Should Pay For Private Hospitalization Coverage!
The second insurance you need to purchase is life insurance. This ensures that you are covered in the areas of income protection from when you graduate to when you are retired. If you have any liabilities or responsibilities, you will also need to ensure that your life insurance coverage can provide for all those items as well.
That way, should something unfortunate and unexpected happens to you that may rob you of your abilities to produce a steady stream of income over a prolonged period such as premature death, disability and critical illness, you and your family’s lifestyle will be protected as the payout from the insurance will be “replace” the loss of your income.
Read more: Buy Term Invest The Rest V.S. Whole-Life (Explaining the numbers!)
Read more: Is Whole-Life Insurance Better For You?
Read more: Is Term-Life Insurance Better For You?
The third, and arguably the last insurance you need to purchase is Careshield Life and Careshield Life supplement. The purpose of both Careshield Life and Careshield Life supplement is to protect you against any expenses that arise as you age and become unable to sustain independent living
In the event when that happens, both policies will provide you with a monthly income payout that lasts for a lifetime or until you’ve recovered. These payouts will usually be used to pay for the caregiver or nursing home expenses.
So, there you have it, these are the three types of insurance you MUST HAVE to ensure that your downside risks are completely covered so that you won’t go broke while pursuing your financial goals if something unexpected happens.
Outside of these three types of insurance, the rest are not a necessity as the benefits are inconsequential for the price that you are paying and the risks are not worth covering. A good example is a personal accident plan as your lifestyle or income-producing abilities will not be badly affected by minor accidents such as a sprain or broken arm that are often temporary.
So there you have it, these are the three main types of insurance that you need to have in Singapore to ensure that you do not go broke. Apart from this topic, here are some other key topics or F.A.Q that people would ask when planning for their insurance:
Read more: 3 Reasons Why You Need To Compare Your Insurances Before Buying
Read more: 3 Things You Should Watch Out For When Comparing Life Insurance
Read more: Do You Really Save Money By Buying Insurance Later Rather Than Now?
All of these can also be found in my eBook: “The Price Of Financial Freedom” which will provide you with a comprehensive guide to help you achieve financial freedom and live life on your terms in the shortest amount of time.
You can download a copy of it for free on my website:
If you do not know how to get started with your financial planning or if you do not have the time to manage your finances, you can consider engaging an Independent Financial Advisor who can help you make sense of the market, accelerate your progress and achieve financial freedom by 5 to 10 years earlier!
To find out more information about how you can benefit from my financial and investment planning services, you can check out what I do on my website here:
Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).
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This article is meant to be the opinion of the author
This article is for information purposes only
This article should not be seen as financial advice
This advertisement has not been reviewed by the Monetary Authority of Singapore