Changes in life stages may require us to adjust our finances and lifestyle. Similarly, those changes should be reflected in the health and protection needs in your Insurance portfolio. Insurance coverage should ideally be taken up as early as possible. This is due to insurers demanding a higher premium to offset the risk of providing coverage to an older person.
“It is only when an unfortunate event strike, you wish you had insurance coverage”
Premiums for saving plans and endowment policy, on the other hand, typically remains the same regardless of age. This is due to the minimal insurance coverage offered by such insurance policy. Hence, prioritise your long time financial goals and objectives carefully before making a decision on which insurance policy is more relevant to you.
What should be included in an Insurance Portfolio?
Your insurance portfolio should minimally provide sufficient coverage for major insurable events. This includes and is not limited to the followings:
- Early Critical Illness (Lump sum payout in the early, immediate and advanced stage of a major illness)
- Critical Illness (Lump sum payout in the advanced stage of a major illness)
- Medical and Hospitalisation (Allows claims of medical bill expenses when hospitalised)
- Total and Permanent Disability (Lump sum payout in the event of TPD)
- Disability Income (Supplement of income due to disability)
- Death (Lump sum payout due to death of policyholder for dependents)
Based on an individual personal profile and finances, the amount of coverage required will varies. However, planning for the above should not place an undue burden on your finances. Refer to the link below for more details.
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What are the insurance policies I should consider for my insurance portfolio?
Always ensure the financial commitment required is within your budget. Having a comprehensive Insurance Portfolio does not have to be costly if done correctly. Instead of owning every single type of insurance policy, combine insurance policies from Life Insurance and Health Insurance.
Your Insurance Portfolio can do more than just providing Health and Protection coverage.
Before taking up any new insurance policy, ensure the policy fits and complements your Insurance portfolio. As a long-term financial commitment might be required, always discuss your time horizon and financial affordability with your financial advisor.
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