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This article was not reviewed by Monetary Authority of Singapore (MAS) or any other relevant authorities.
Ahhhh, finally, you are done with balloting for modules, studying for exams and submitting assignments to Turnitin in fear of plagiarism! Congratulations!
While it is certainly a feat to be graduating from many years of education, you are now thrown with this new (perpetual) assignment called… “Adulting”. *cues sad music*
Besides school debts, you have to now learn to pay your first income tax, contribute to your family, and buy… insurance. I am pretty sure many of us know how important it is to start buying your insurance plans, but have no idea what is it exactly that is important.
Fret not, you are not alone. This article is meant to share with you the top three insurance policies you should first get as a fresh graduate!
1. Integrated Shield Plan
What is this?
In the event you are hospitalised, this plan dictates the types of ward you stay in, how much your insurance company pays your hospital bills, and how much you need pay out of your pocket.
Why is this important?
No one will ever know when you would be hospitalised and the last thing you want to be worrying about by then is paying your hefty hospital bills.
How to find out if I am already covered?
To begin, as long as you are a Singaporean or Singapore Permanent Citizen, you will already be covered under Medshield Life as it is under your Central Provident Fund (CPF). However, it is important to note that Medshield only offers you to stay in B2/ C Type wards unless you purchase other Integrated Shield Plans which prices and benefits differ from various insurance companies.
2. Personal Accident Plan
What is this?
In the event you experience these by accident, you or your family would get reimbursed with a sum of money*:
- Examples of Major Hiccups:
- Death
- Total Permanent Disability (You are unable to do four out of the six activities of daily living: washing, dressing, transferring, mobility, toileting and feeding)
- Burns and Dismemberment
- Examples of Minor Hiccups:
- Bee stings
- Dengue fever
- Spraining ankles
*Different insurance companies and different plans offer a different sum of money.
Why is this important?
As the name suggests, no one will ever know when accidents would happen to someone.
3. Life Insurance Plan
What is this?
In the event you experience these, you or your family would get reimbursed with a sum of money*:
- Major Hiccups
- Death
- Total Permanent Disability (You are unable to do four out of the six activities of daily living: washing, dressing, transferring, mobility, toileting and feeding)
- Terminal Illnesses
- Critical Illnesses (this could be an add-on to your plan)
*Different insurance companies and different plans offer a different sum of money.
Life Insurance Plan could also offer you a savings plan.
What’s the difference between Life Insurance Plan and Personal Accident Plan?
Life Insurance Plan reimburses you with a sum of money even if you experience the above Major Hiccups without an accident. However, it would be an “either or” scenario if one experiences one of the Major Hiccups first. For example, if one were to be diagnosed with a terminal illness, he or she would only be reimbursed for that once and not for death or total permanent disability if it happens later on.
Why is this important?
Aforementioned, no one will ever know if the above hiccups could ever happen to someone.
Why should I buy now?
When you are young, you are healthy and less likely to be suffering from medical conditions; hence, you would be able to optimise the coverage offered in Life Insurance Plans. As compared to somebody who already has some medical conditions, he or she would get the same coverage, but at a higher price.
As different companies offer different plans and prices, it would be advisable that with this basic overview of the top three plans to get as a fresh graduate, you contact your ideal financial adviser for more details! You could also fill up this form to start engaging a financial adviser if you don’t know any!
