Many of us get so busy with our daily lives we don’t take time to consider about the importance of protection from unexpected adverse situations.

Yet, life throws unexpected situations at us all the time. Some we like, for example winning a lucky draw prize, and others we don’t. Our household income and expenses may be impacted by an illness of someone in the family, or in a more serious situation, the death of the breadwinner of a family. Outstanding loans still need to be repaid, and large sums of money may be required for our children’s education.

While we cannot prevent such situations, we can opt to give ourselves a bit of protection. Protection is not all that complicated once you get down to it.

Here’s a quick look at the precautions you can take to protect yourself and your loved ones, as well as any gaps you may need to take note of.

Boost your health insurance coverage

Programs like Careshield Life⁵ can help you meet the expenses of long-term care if you are severely disabled. But there is much more you can do to protect yourself from a medical emergency. Consider what these policies have to offer: Integrated Shield Plan, Critical Illness Insurance, Disability Income Insurance, Hospital Income Insurance

Reduce the chances of being afflicted by lifestyle diseases by taking care of your health. Exercise and diet play a key role in your well-being.

A life insurance policy can provide a solution if the bread winner dies suddenly, and the family faces a cash shortage. So which should you choose – term life or whole life?

Term Life Insurance

• Select term life insurance if your primary objective is to provide your family with a lump sum if you pass away.
• Term life is economical. Additionally the earlier you buy a policy, the more you save in insurance premiums.
• Term insurance provides protection for a specific term. Say, 20 or 30 years.
• If you die within the period, your family will get a payout. If you survive, the payout is zilch. You don’t get any money at all.
• Term life insurance is not a good option if you can’t bear the thought of paying insurance premiums and getting nothing in return.

Whole Life Insurance

• Whole life insurance, as its name implies, covers you for your entire life. So there’s a guaranteed payment at the end.
• There could be an additional amount in the form of a bonus, as well.
• Whole life insurance is comparatively expensive.

Making a will

• A will is a written document that sets out who is going to inherit your estate. That includes your: Property; Cash and other valuables; Other Assets.
• A will can assume great significance if there is a disabled or elderly relative whom you are responsible for.
• Perhaps the most significant benefit of making a will is that it removes uncertainty among your relatives.

Do all you can to protect your home, which is probably your most valuable asset

• If you have HDB fire insurance, you need to buy a separate policy for the contents of your flat. Remember to insure any expensive renovations that you have carried out.
• Consider other types of add-ons:
  • Personal liability cover
  • Alternative accommodation cover

Often Travelling? Invest in an annual travel insurance plan.

Start future-proofing and protect yourself and your loved ones.

As a first step, you could review your health and life insurance policies. Is your Integrated Shield Plan adequate for your needs? You may want to add more life insurance coverage if your income has gone up. Next, evaluate your home insurance and mortgage insurance. Check if you need to make any changes.

Finally, make your will. This is important if you have children or other dependent family members.

Foot Notes

¹Cancer Statistics

²Precision cancer treatment expected by 2020

³Work with drug firms to cut cost of cancer treatment

⁴Parliament: Rate of growth in healthcare spending unsustainable, says Gan Kim Young

⁵CareShield Life

⁶Life Insurance Association Singapore

⁷7 benefits of regular physical activity

⁸The difference a healthy diet can make

⁹Do You Have Enough Insurance Protection?

¹⁰How Much Life Insurance Do You Really Need?

¹¹CPF Nomination Scheme

¹²Intestate Succession Act

¹³Housing & Development Board – Fire Insurance

This article is brought to you by Standard Chartered Bank (Singapore) Limited. All information provided is for informational purposes only.