Let’s Save Up for Our Future
In today’s fast-paced world, it is common that we take on multiple roles, at home, at work and even in our spare time. We must balance our duties as working adults with our responsibilities as parents and caregivers, and even as we do this, we must continuously plan for the future.
Yet despite these potential challenges, many of us are underinsured. Last year, the Life Insurance Association conducted a Protection Gap Study 2012 which revealed that the average working Singaporean is insured for only up to S$319,500 although he or she is more likely to need coverage of S$626,000.
Insurance needs: Put Your Family First
The birth of a child brings so much joy but at the same time, a lifetime of commitment and responsibility. As parents, we want to provide for our children the best we possibly can. This requires proper planning.
While you probably have some insurance planning in place, how do you know if your current insurance plans can adequately protect your new family member?
Managing finances for you and your family
Singapore may rank 5th in Asia and 17th in the world in terms of the penetration rate of life insurance cover, but Singaporeans are still severely underinsured. According to a Life Insurance Association report, the existing life insurance cover of working adults in Singapore averages only S$165,000 compared with a typical need of approximately S$500,000. This makes you - and many Singaporeans like you - 66 per cent underinsured. Add to this your financial responsibility of being a parent and a child, and you run the risk of facing financial difficulties should an emergency occur.
Factors to consider before taking up an investment-linked policy
An investment-linked policy (ILP) is a life insurance plan that can provide you with a combination of protection and investment. The premiums that you pay for ILPs typically provide life insurance protection and at the same time, allow you to invest in professionally managed investment-linked funds.
While you may have the flexibility to vary the level of insurance coverage for your ILPs, there is, however, a trade-off between the amount of insurance coverage provided and the amount available for investment.
A young Singaporean couple’s story
As a Singaporean couple in their early-30s, Gerald Tay and Kristie Wong’s priorities changed when their son Justin was born in 2009.
“In the past, we were living for ourselves,” Gerald recalls. “Now, everything we do revolves around making sure that Justin is well taken care of.”