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!