Stocktaking my insurance plans - how covered am I?
Some background about me:
- I've a few more years to welcome my 30s
- I've worked for 4 years
- I bought my 1st insurance (hospitalisation plan) when I started working
- I'm not married yet
I feel that buying insurance is a responsibility. It is a responsibility towards myself and my loved ones. Nobody wish to deplete their hard-earned savings for a sudden incident. If you're lucky enough, your incident could be a once-off, curable event. Otherwise, your incident could cost you your life and torture you and your loved ones.
Here's a comparison of the plans I have versus what the Seedly guide:
Term/Whole LifeThe recommended coverage is 5x my yearly income i.e estimated at $350,000.
The actual coverage I have? $200,000. The main beneficiaries of this sum would be my parents and it should be enough for them for I've 2 siblings who are working and would be able to provide for my parents should I be gone.
Of course, should I get married with kids, I may have to revise the coverage. We all know how expensive it is to raise a child + pay for our houses.
As a single woman with no liabilities now, I am thankful for this carefree period :P
Firstly, it is possible, especially at an early stage, for full recovery to be made. The payout from the CI helps cover the additional medical costs that a person may incur. Secondly, it helps the person deal with living expenses in the event that the person needs to take a break from working.