We always talk about investment and financial planing.
But did you keep re-assessing your insurance portfolio that suits your best needs?
But did you keep re-assessing your insurance portfolio that suits your best needs?
To summaries our thought ahead, insurance plans mainly should cover below:
1) Life
2) Critical Illness
3) Medical Card
1) Life
2) Critical Illness
3) Medical Card
And all the above cateogies may differ from the respective insurance provider and we will talk more on your ideal coverage.
Life - it means you will get the sum covered when you are dead or permanently disabled
Critical illness - Mostly cover your cancer illness or some other serious illness
Medical - This will cover your hospitalisation expenses, allowances etc.
Critical illness - Mostly cover your cancer illness or some other serious illness
Medical - This will cover your hospitalisation expenses, allowances etc.
The above will further break into traditional and investment linked product nowadays.
This article is not meant to tell you on what to buy or what to assess.
It is to document or record my thoughts from time to time. An ideal plan for myself -
1) Traditional Life Plan - Lock in my premium for whatever coverage that I want.
2) Critical Illness - This is a must as you can "cash out" once you are diagnosed with cancer, etx
3) Medical Card - Buy a ONE AND ONLY ONE reasonable medical card that you think can sufficiently cover the potential expenses.
1) Traditional Life Plan - Lock in my premium for whatever coverage that I want.
2) Critical Illness - This is a must as you can "cash out" once you are diagnosed with cancer, etx
3) Medical Card - Buy a ONE AND ONLY ONE reasonable medical card that you think can sufficiently cover the potential expenses.
Rationale behind is due to :
You can only utilise one medical card at a time (Unless you have supplemental card that can continue to be used after the first card) and its on a charge-per-use basis.
It also mean that you can't get any additional cash upfront before the operations/hospitalisation expenses are incurred.
I am of the view that you should top up your life and critical illness plan after buying your first medical card. (Medical card and life are in a package and they are sold to you as investment link product nowadays)
The life portion of your current package ( medical card and life) can be tailored and reduce the life premium (as the price in investment link is not locked, meaning you will be paying more and more throughout the years for same life coverage you get)
Meanwhile, I also heard from my agent that traditional package is getting lesser and lesser and the markets are all pushing on investment link product due to higher commisioners earned.
While you are still young, perhaps you can keep the life portion in your plans but you should consider reducing the portion as you will be paying higher premium in investment linked product (although you do not see it now yet)
While you are still young, perhaps you can keep the life portion in your plans but you should consider reducing the portion as you will be paying higher premium in investment linked product (although you do not see it now yet)
You might not be able to see the rise of your premium in investment linked product now, but you will see it one day when your residuals cant cover the monthly premium. This often results in cases where the elderly people enter the plans late.
My solemn and honest advice would be still have a wise/fair insurance coverage for ourself and families and please pay efforts to study more on what's happening or latest development in the market.
Last but not least , you are also not encouraged to start your saving plans before buying reasonably sufficient insurance coverage.
Wealth Hunter
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