Disability

Disabilities are caused not only by accidents but by illnesses as well.  In fact stroke is the top cause of disability*.  More than 60% of stroke survivors remain significantly disabled 3 months after they were afflicted*

Financially speaking, disability can be worse than passing away. It is one of the most devastating threats to a family’s financial security. And it’s a mistake to think that disability only strikes the elderly.

Every year, more than 10,000 people in Singapore suffer a stroke and are admitted to hospital^. And 1 in 10 of all hospital admissions are the result of an accident^. We are all at risk, all the time, and an illness or injury that prevents you from working can start a downward slide that wipes out all of your assets.

Critical Illness

No one expects to suffer from a Critical Illness and most people don’t prepare for it. Yet, every day in Singapore, 28 people are diagnosed with Cancer*. Thanks to advancement in medical science, most survive and many recover. However they may then face the financial hardship brought on by medical expenses incurred during the illness, which may not be covered in part or in full by their Medical Expense plan, and any prescription medication that they may need could amount to a lot of money.

You may also wish to seek pioneering or experimental medical treatment.  What’s more, the combination of the illness, treatments and medications may often prevent one from being able to work or care for the family, resulting in loss of income and unanticipated expenses such as child care support.

*Source: The Global Cancer Burden – Tbe Straits Times, 4 Feb 2012

Hospitalisation

Healthcare costs are rising faster than the cost of other goods and services*. Is your Shield Plan keeping up with the times? 72% of Singaporeans agree that they cannot afford to get sick these days due to the high medical costs**. Medical Expenses benefits aim to meet the direct costs of treatment and hospitalisation.

You may consider upgrading your CPF Medishield plan to a private Integrated Shield Plan, which can be paid through your CPF Medisave account**. Compared to CPF Medishield, Integrated Shield Plans provide more comprehensive benefits and coverage.

*From 2006 to February 2010, the Healthcare Consumer Price Index has risen by 15.4%, compared with a rise of 14.6% in the General Consumer Price Index over the same period (Singapore Government Ministry of Health website MAS Monthly Statistical Bulletin January 2011)

** Source: Singapore’s Emigration Conundrum, The Business Times, 6-7 October 2012

***Up to S$800 per person per year or S$1,200 if you are aged 81 or above, based on your attained age next birthday

It pays to cover all the bases

By Lorna Tan, The Sunday Times, 22 May 2011

Most of us know how traditional life insurance like term and whole life policies work, but what happens if you cannot keep working due to illness or injury?

Traditional life plans provide a cash payout if the policyholder dies. They usually come with a total and permanent disability (TPD) cover that offers protection if calamity strikes.

If the policyholder qualifies to claim under TPD, the lump-sum cash payout will come in handy to defray medical and household expenses, instead of having to wait for death for the death benefit to be paid out.

This is where the confusion arises: What exactly is included under a disability cover?

Traditional TPD cover kicks in when the insured is permanently unable to engage in a job or to perform work of any kind. This could be due to injury or illness.

It also includes total loss of sight in one or both eyes, and the loss of one or both limbs above the wrist or ankle.

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Health alert: One in 3 will develop diabetes

By Salma Khalik, The Straits Times, 24 February 2012

A TIME bomb is ticking here – and its name is Diabetes

One in three Singaporeans will develop this condition by the time they are 69, making it one of the most pressing health issues here, said Professor Chia Kee Seng, the dean of the Saw Swee Hock School of Public Health.

‘It is no longer a question of ‘if I will get diabetes’, but ‘when I will get diabetes’,’ he said.

In fact, in 2010, 11.3 per cent of people aged 18 to 69 were already living with this condition, in which a high level of sugar in the blood can damage the organs. In 2004, it was 8.2 per cent.

The disease is fairly widespread among those aged 70 and above.

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Do you Feel Lucky?

Do you feel lucky? Here are some statistics.

• 1 in 4 men and 1 in 5 women will contract one of the Critical Illnesses before age 65
• you are seven times more likely to suffer from a Critical Illnesses before reaching 65 than you are to die
• Heart diseases, cancer and accidents are 3 of the top 10 conditions for medical costs
• 1 in 9 women will develop breast cancer
• 1 in 2 men at risk of Cancer by 2022
• Every day in Singapore, 28 people are diagnosed with cancer.

Source: Office of National Statistics, and Swiss Reinsurance and Tower Watson

Planning for your child’s education

I did mention that paying taxes and Retirement are two guarantees in life. Here’s another – Children’s education.

As a parent, you certainly want the best for your child. And that includes giving your child a bright future with the best university education that you can afford. But did you know your child’s university education can cost over S$500,000 in 20 years time?* For most parents, the escalating cost of higher education may come as a rude shock. While a local university education is projected to cost over S$100,000, a degree course in the USA could cost a staggering S$352,738 by 2025*.

Children are the future of the world, so the greatest present  you can give to your children is the best education possible. But unless we plan in advance, we may struggle to give our children the best education they need.

*Source: Estimated Education Cost: 4-year university degree, http://www.aia.com.sg

Planning for a comfortable retirement

There are only a few guarantees in life, and paying taxes is one of them. Another is retirement. Everyone will face retirement some day, but have you planned for it? The reality is, most of us have not put enough thought into retirement planning and defer it only until much later in life. All of us have priorities at different stages of our lives, but Insurance planning somehow is always the least of our priorities. But if retirement is a certainty, shouldn’t planning for it then be our top priority?

Do you know that if you wish to retire with S$2,000 a month for 20 years, you need to set aside S$480,000, without even taking into consideration inflation? Even then, S$480,000 is a hefty amount to set aside isn’t it?

Retirement is the time when you are finally free from most financial obligations, and settle into the life you have always dreamt of. That’s why getting adequately prepared early is so important. So that when the actual day comes, you do not need to worry about whether you have enough to maintain your current lifestyle, and can focus on living the next chapter of your life to the fullest. The earlier you start planning, the easier it becomes.

For many, retirement can be one of the best and most enjoyable periods of your life, if you plan ahead. Otherwise, you may just have to retire from enjoyment and continue working.

Concern over Retirement woes

By Zeinab Yusuf Saiwalla, The Business Times, 4th October 2012

DESPITE having a higher level of savings and investments than their counterparts from most other countries, Singaporeans are still relatively worried about their retirement, according to results from Aviva’s Consumer Attitudes to Saving (CAS) survey released yesterday.

The survey found nine out of 10 respondents from Singapore (92 per cent) confirmed that they have some form of savings and 65 per cent have put their money into investments. Despite that, 57 per cent of respondents were worried that they will not have enough money when they retire to provide an adequate standard of living.

Furthermore, the study which surveyed 1,000 nationally representative adults aged 18 and above, also found that 49 per cent of Singaporeans felt that they would have to work beyond the usual retirement age to fund their retirement.

Singaporeans are significantly ahead of respondents from India (64 per cent), UK (66 per cent) and USA (70 per cent) when it comes to savings, only falling slightly behind China where 96 per cent of respondents confirmed that they have some form of savings. However, a similar level of worry was seen across the nine other cities where the survey was conducted.

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Too much, too little, too late

By Lorna Tan, Senior Correspondent, The Sunday Times, 27 March 2011

Six out of 10 Singaporeans worry their families will not be well protected should something untoward happen to them.

This is according to the latest findings of the biannual HSBC Asian Insurance Monitor survey, which was released recently.

It highlighted the finding that the majority or 62 per cent of Singapore respondents feel their families are not financially protected in the event of a critical illness, an accident or unexpected loss of life.

During such tough times, Singapore respondents said that their families would have to dip into their personal savings, rely on other family members, make lifestyle changes, borrow money or sell assets to cover daily expenses.

Besides Singapore, the survey covered Malaysia, Taiwan, South Korea, India, China and Hong Kong. A total of 3,584 individuals were surveyed in the second half of last year, of whom 506 were Singaporeans between 25 and 65 years old.

The survey indicated that only about four out of 10 Singaporeans or 37 per cent believed that their families would be well protected and provided for by insurance payouts, in the event that critical illness, accident or unexpected life loss happened to them.

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