Karen Tang, CFP®: Certified Financial Planner in Singapore
Singaporeans are Critically Lacking in Critical Illness Protection. Are you one of them?
The Straits Times article published on 27 April 2018 “Singaporeans Lack Critical Illness Insurance Cover: Study” revealed that people here have a huge shortfall in their critical illness protection. The policies they own can meet only 20% of their needs, if a critical illness were to occur.
Question: What is adequate protection in the event you suffer from a major illness like cancer, stroke or a heart disease?
Answer: According to the LIA study, it is 3.9 to 5 times of your annual income.
This is the same yardstick that I use when planning for my clients. You think that is too much? Think again. There is a high likelihood you’ll be out of action from the workplace – it could one year, two years or even five years. In the mean time, there are ongoing living expenses. Your mortgage will form a bulk of it. According to Aviva’s Consumer Attitude to Savings 2014, 2 out of 3 Singaporeans are not financially prepared to deal with a critical illness.
My friends, what is the status of your critical illness protection? Take action now before it is too late!