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Life insurance might not always sound urgent to many people, especially young adults, but it is necessary. Oftentimes, the need for individuals to insure themselves increases as they age. By 2018, two-thirds of Singaporeans were covered by some kind of insurance program. Perhaps, one reason why the remaining third were not covered could be the high price of premiums. This article points you to cheaper alternatives you can access.
Should you supplement your Medishield Life cover?
Singaporeans have access to a mandatory health insurance cover called Medishield Life. This is the most basic cover to which every Singaporean subscribes. However, Medishield Life might not always cover all the bills outstanding after hospitalization. The case of Mr. Seow Ban Yam, the 82-year-old man who had eye surgery and Medishield paid only $4.50 out of a total bill of $4,477, should always remind Singaporeans to think beyond the primary cover. Clearly, it is prudent to subscribe to an additional cover over and above Medishield.
For many young adults, it might seem needless to subscribe to an Integrated Shield Plan (ISP). In particular, young adults barely care much about their health. This is borne out of the fact that they have many years ahead and that their bodies are strong enough to avoid sickness. Nevertheless, it may not be long before they realize that actually, life insurance is an important part of a happy and peaceful existence.
Besides the arrogance and negative attitude towards life insurance, being young comes with other perquisites like access to cheap cover. Young adults can get insurance at $150 per month or even less depending on their risk profile. As such, this cohort of the population can actually supplement their Medishield Life insurance without feeling a pinch in their pockets. Can you imagine avoiding Mr. Seow Ban Yam’s misfortune with premiums under $150 monthly? Apparently, it is necessary for you to sign up for additional coverage to guarantee peace of mind during emergencies.
What are the insurance plans available to you?
While Medishield Life is mandatory, Singaporeans have the liberty to bolster their cover such that they can be more prepared for any emergency. In 2018, Mr. Seow Ban Yam could only receive $4.50 for a $4,477 bill from Medishield Life. Clearly, if Medishield was the only cover the old man relied on, the situation must have been grave for him. Imagine having to source for funds at such a critical hour while having known you have a health insurance plan?
That is why there is the Integrated Shield Plans (IPs). IPs enable policyholders to sign up for extra coverage from private insurers. As such, you will enjoy the protection of Medishield Life alongside a plan by private players like AIA. Such a cover is much more comprehensive and leaves nothing to chance. There are numerous IP plans in Singapore, which afford policyholders some benefits like higher claims limit, higher ward classes, and claims pre/post-hospitalization. Interestingly, you can get some of the IP insurance at $150 per month or less.
- Term vs. whole life insurance
Usually, the Integrated Shield Plans enable policyholders to choose between term insurance and whole life insurance. Term insurance and whole life insurance differ on the objective of the coverage and the coverage period. On the one hand, term insurance is specifically for protection. Further, this kind of insurance cover protects the policyholder for a given period of time after which a new subscription is required.
On the other hand, whole life insurance protects the policyholder to the end of life. Usually, this insurance plan comes with a savings option. As such, the policyholder has the option of growing their savings as they pay the monthly premiums for coverage. Upon the death of the policyholder, the insurer pays the sum assured together with any accumulated bonuses. The policyholder can surrender the plan early or can wait to redeem on maturity i.e., at death.
Bundles available for $150 per month
Whether you choose term insurance or whole life, providers offer different bundles for different cohorts of customers. As earlier explained, young adults are more likely to access cheap coverage since their health is oftentimes is good condition. Therefore, this article will focus on available bundles aimed at young adults.
1.Young Working Adult Protection Bundle
MoneyOwl offers this bundle, which packages a mix of products from different insurers. This bundle protects the income of young adults such that they can comfortably tackle any forthcoming uncertainties. With this bundle, the policyholder can rest easy even in the most unfortunate circumstances of their lives. This bundle accepts just $112 monthly premiums for males and $140 for females for the basic package. However, if you can afford the deluxe package, you will pay more than $150 in monthly premiums.
This bundle protects the policyholders in case of death or total permanent disability, early critical illness, critical illness, hospitalization, and occupational disability. Interestingly, you can access two different plans, whether you purchase the basic package of the deluxe package. In both packages, you can choose the term plan, which terminates once you retire at age 65. Alternatively, you could go with the hospital plan, which protects the policyholder for every minute of their life until death.
2.Online Life Protection bundle
Etiqa offers this bundles, and it targets customers across the age spectrum. Under this bundle, the insurer offers three plans i.e., DIRECT – Etiqa term life, where policyholders can choose protection for five years after which they can renew. The policyholder can also choose a 20 year fixed plan or another one that runs until one is 65 years. DIRECT – Etiqa’s whole life, on the other hand, offers lifetime protection. Policyholders can pay premiums until when they are 80 years old. Policyholders subscribed to the affordable protection plan under this bundle can pay as low as $3.9 per month. Oftentimes, this plan targets 25-year-old adults and younger.
Conclusion
Singaporeans have access to a selection of insurance options over and above Medishield Life. The plans enable people to take care of emergencies without having to keep their hands in their pockets to pay for what Medishield Life could not pay. Usually, young adults can easily access cheap coverage since they experience less health-related emergencies. Nonetheless, there are various insurance bundles like the Young Working Adult Protection bundle targeting young customers. Such bundles are cheap and make it easy for people in Singapore to protect themselves from unfortunate events in their lives.
