Insurance

Type of Insurance

BASIC

Life

-Whole
  = Traditional
  = Limited Payment
-Term (add ons)
  = Standard Term
  = Reducing Term

Purpose of Whole Life:
1. to cover loss of income (leaving money for dependents)
Life insurance is used for hedging to protect earned income, when one doesn't earn any income there is nothing to hedge unless one wish to pass on some gift in form insurance money.
2. to protect my dependents' savings (and my own) so that a portion of it is already set aside for such purpose.
3. for the cash fund in case something big really happens and you urgently need cash

Purpose of Term Life:
1. to protect loss of income when I'm not around (leaving money for dependents)

Note :
there is a loophole where term plan no longer covers upon hitting age 60-65. I wish to cover that period using whole life.

if you can separate the CI out of the whole life, then the only distinguishing feature of a whole life against a term is the participating fund. I don't think like to have investment tied up with insurance, so I would never get a whole life without the CI rider.

Critical Illness

Critical illness can somehow protected through medisave, medicalshield, additional medical insurances, and in the worst case o for social medical subsidy and seek class C treament

The thing about CI is the pay-out terms are quite stringent. one can be very ill or have a prolonged illness but not critically ill enough to get the insurance's claim

H&S

ADD ONS

Personal Accident

Hospital Benefit & Disability Income

Income Shield



GENERAL

1. For those not investment savvy, voluntary topping up your retirement account may be a good idea.

2. You may apply to withdraw your CPF in the Ordinary and Special Accounts if you are suffering from an illness which has resulted in you being permanently unfit from ever continuing in any employment. We don't make a claim on our CPF money. It is our own money but we only request for early withdrawal and CPF rule allows it.

3. The condition that CPF board based on is like TPD definition but according to insurance company, the amount of Claim that was payout in the past number of years is very very low as compare to the amount paid to Critical Illness coverage. If not, why is it that the premium for TPD is so low as compare to Critical Illness.


To take note :
CPF
CPF Life
Eldershield
Medisave
Medishield