Insurance- Back to Basics

SM Goh Chok Tong spoke at NTUC Income's 40th anniversary dinner. He called on insurers and advisers to re-focus on protection plans for the masses. More specifically, term assurance was emphasized.

Indeed, this is going back to insurance 101. Beyond hospitalization and surgical plans to cover bulk of medical expenses related to hospital admission, there is merit in almost all cases to have an affordable term assurance plan, be it to provide financial assistance in event of critical illness treatment or to aid family living expenses when the breadwinner passes on prematurely. Of course, one can augment his insurance portfolio with other plans to provide more comprehensive coverage e.g. lifelong critical illness protection via a whole life policy. There are plenty of choices.

But in reality we have to balance priorities alongside competing financial concerns e.g. rising living costs, children's education savings, a better home etc. Protection planning via insurance is important too. So there are available protection tools for those with stretched budgets. Why not term insurance? But beyond those plans in the market, do distinguish between employer group term insurance versus those offered by associations e.g. SAFRA, HomeTeamNS or even SAF Group plans for active/operationally ready NSmen. Employer insurance is typically not portable for individuals and even if so, rates usually differ. Do check the T&Cs. Due diligence advised.