Saturday, November 24, 2007

Insurance to cover working years

Hi Mr. Tan

I read through your FAQ and understand why it is better to buy insurance and investment seperately.

What happens if I am not covered by insurance after age 65 and is hit by a critical illness? Will it be better to buy an ILP which covers me throughout my life?


If you have accumulated sufficient savings at the time of your retirement (say, at age 65), you do not need to be insured for critical illness beyond that age.

A medical insurance plan, such as Medishield or private Shield, is likely to cover you for most of the cost of treatment. If you are insured under Medishield, you can be treated in a subsidised B2 ward.

If you have to work beyond age 65 to accumulate sufficient savings for your retirement, you can have a decreasing term insurance to cover you up to the that later age.

1 comment:

Anonymous said...

You don't need insurance after 65 except an H&S plan like one of the shield plans. Don't waste your money on critical illness plan. It is very expensive at this age. Keep the money for retirement. Don't listen to those incompetent salesmen. They want only your money. They don't know how to do insurance planning.
Like what Mr. Tan said. Go for B2 or C ward if it happens.

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