Finance
How much insurance do you need?
February 21, 2022
How much insurance do you need?
We have now further outdone ourselves as a city of high living costs. Unexpected costs will hit us harder now than ever before. That is where insurance comes in to help us afford what we can’t.
Realistically, how much do we need?
The first component would be to get a Life Insurance that assures you for a minimum 10 years of your salaries. This helps to leave behind a small legacy for your family to get through life. In today’s time, a good policy also covers early and advantage stage Critical Illnesses.
You will also need to have a Personal Accident plan. These usually cost you 10 cups of coffee a month but provide you with the assurance that you can come out of a hospital without going to the poor house.
Finally, you need a hospitalisation plan. This helps you to mitigate the costs of medicine and hospitalisation. Thankfully these can be paid by our CPF Medisave to enhance the coverage and care we get in hospitals.
In summary, you need a minimum of these 3 to get a decent insurance cover.
1. Life insurance with Critical Illness cover
2. Personal Accident cover
3. Hospitalization plan
