Here are the 5 essential insurance coverage you need for your total peace of mind:
- Medical insurance - A Must for Everyone
Unless you want to rely exclusively on government hospitals, everyone at all life stages should get medical insurance. This includes your children. Do you know that you can insure them from when they are as old as 15 days?
Even if you were stricken with cancer, most medical plans will pay for hospitalisation, surgery and chemotherapy. You do not need a separate critical illness plan to pay for your medical and hospitalisation expenses.
- Life Insurance - If You Have Dependents
If you have dependents who rely on you for financial support, like your spouse, children or retired parents, you need life insurance. If you die unexpectedly, life insurance will provide a lump sum to them. A RM1 million life insurance policy is not uncommon and can be bought for less than RM200 per month for a 35 year old man with a clean bill of health.
But if you’re single, and your parents do not depend on you for financial support, there’s no need to get life insurance. Yes, fancy us saying that! And you certainly do not need to insure the lives of your young children as you simply do not depend on them.
- Total and Permanent Disability insurance - Usually Comes with Life Insurance
This pays you a lump sum should you suffer total and permanent disability (“TPD”). TPD results in a worse financial situation than dying, as not only would your family have lost a source of income (you!), but you will need funds to support yourself in your disabled condition.
TPD insurance is usually packaged together with life insurance. If you strictly do not need life insurance but would still like TPD coverage, consider buying life insurance with TPD packaged together.
- Critical illness Insurance - Consider in your mid-30s (earlier, if your family has a history)
Should you be stricken with a critical illness (“CI”) like stroke, cancer or heart-attack, your medical plan above should already cover your hospitalisation and treatment costs. But if, in addition, you want to replace your lost income as you’re recovering, or pay for experimental therapy not covered by your medical plan, consider CI insurance. CI insurance pays you a lump sum upon diagnosis of a covered CI.
The CIs covered depends on the plan offered, which could number above 40 types. (At Fi, we focus on the 4 most frequent, Cancer, Stroke, Heart Attack, Heart Bypass).
Statistically, the incidence of most of these CIs occur when you’re older. But it’s hard to advise precisely when to buy a CI plan. Most people should, consider CI insurance when in their mid-thirties. However if your family has a history of cancer, best to get one as soon as possible.
- Personal Accident insurance - Consider if You’re An Active Sports or Outdoor Person
Should you suffer injury from an accident, a medical plan should cover your hospitalisation and major surgery costs. But there are many injuries from accidents that do not need hospitalisation e.g. wounds that require stitches from a clinic, or a sprain that requires physiotherapy. Personal accident insurance will cover the cost of these.
Consider it if you are prone to injuries from an active sports or outdoor lifestyle, for your accident-prone children or frail parents, or if you commute to work on a motorbike.
These are 5 of the insurance policies that protect you and your family’s lives. Choose those that suit your life stage and circumstances the best.
At Fi Life, we offer Life/TPD insurance with an optional Critical Illness Add-on and comprehensive medical plans. Check them out below!