Which insurance plans should Singapore family buy?
Living in Singapore, we always consider buying insurance to protect our family members and ourselves. But the annoying problem that many families are facing is which insurance plan or plans we should buy. There are quite a few insurance companies in Singapore and each company has many insurance plans. Thus, we are worrying that we may not buy enough insurance to protect our family or pay too much money to buy some unnecessary insurance plans.
The most important insurance that every family should buy is Hospitalization and Surgical insurance. Because of the expensive medical costs in Singapore, we should buy this type of healthcare insurance to cover the hospital and surgical bills and outpatient care cost. All Singaporeans are compulsory to buy MediShield Life for themselves to cover basic public hospital treatment. If we want to receive better treatment from private hospitals, we should buy boost MediShield Life with an Integrated Shield Plan (IP), which covers ourselves in better class wards and private hospitals, plus covers your pre- and post-hospitalisation treatment.
The next most import insurance is Life Insurance. In case of death, terminal illness and total permanent disability, our family will get the sum assured from this type of insurance plan. And term insurance is better than whole life insurance. The reason is that the purpose of life insurance is to provide your dependents with financial support until they are financially independent. Thus, most financially savvy people never buy whole life insurance.
Besides these two types of insurance plans, depending on our family situations, we can consider buying other types of insurances. For example, if we own a house, we should buy Home Protection Insurance. If we own a car, we should buy Car Insurance. And it could be good to buy Critical Illness Insurance. The critical illnesses include cancers, heart attack, stroke and kidney failure.