Friday 30 August 2024

Sharing My Personal Insurance Portfolio Breakdown

Recently I had a friend ask me about what insurance policies I have so that he can determine if he have sufficient coverage.

It got me thinking that it might be helpful to share my insurance portfolio with you all too so that we can learn from one another. 

Hopefully through this post, it will give you a better understanding of what insurance is and how you can structure your own coverage as well.


Types of Insurance

There are 5 types of insurance that I have and are ranked in priority below

  1. Health Insurance
  2. Life Insurance
  3. Critical Illness Insurance
  4. Disability Insurance
  5. Personal Accident Insurance

Health Insurance 

This is like a shield that helps you when you get sick or hurt. If you need to go to the doctor or hospital, health insurance can help pay for it. 

Purpose: Protects you from the financial burden of medical expenses. 

Coverage: Varies depending on the plan, but typically includes: Hospitalization, Surgery, Doctor's visits, Medications 

Trigger: When you need medical treatment. 

Payout: The insurance company will pay a portion or all of your medical expenses, depending on your coverage.

To Note: Private rooms are more expensive, while copayments can reduce out-of-pocket costs but increase premiums.  

Life Insurance 

This is like a promise to your loved ones. It says, "If something happens to me, I want to make sure my family is okay." 

Purpose: Provides financial support to your loved ones in the event of your death or total permanent disability. 

Coverage: The amount of coverage you need depends on your financial situation and the needs of your loved ones. 

Trigger: Your death or total permanent disability. 

Payout: The insurance company will pay a lump sum of money to your beneficiaries.

To Note: Term insurance provides temporary coverage at lower premiums, while life insurance offers lifetime coverage with higher premiums and potential cash value. 

Critical Illness Insurance

This is like a special shield that protects you from really bad illnesses. If you get very sick, this insurance can help you and your family. 

Purpose: Provides financial support if you are diagnosed with a critical illness. 

Coverage: The amount of coverage you need depends on your financial situation and the type of critical illness you are concerned about. 

Trigger: Diagnosis of a critical illness listed in your policy. 

Payout: The insurance company will pay a lump sum of money.

To Note: Early critical illness coverage provides financial support if you are diagnosed with an early-stage critical illness

Disability Insurance 

This is like a safety net. If you can't work because you're hurt or sick, this insurance can give you money to help you. 

Purpose: Provides financial support if you become disabled and unable to work. 

Coverage: The amount of coverage you need depends on your income and expenses. 

Trigger: Becoming disabled and unable to work. 

Payout: The insurance company will pay a monthly income.

To Note: Determining the right amount of disability income depends on your current income, expenses, and desired lifestyle.  

Personal Accident Insurance

This is like a shield that protects you from accidents. If you get hurt in an accident, this insurance can help pay for your medical bills. 

Purpose: Provides financial support if you are injured in an accident. 

Coverage: The amount of coverage you need depends on your financial situation and the type of accidents you are concerned about. 

Trigger: An accident that results in injury or death. 

Payout: The insurance company will pay a lump sum of money or a monthly income, depending on the type of coverage you have.

To Note: Certain insurance provide 24/7 worldwide coverage for personal accidents, dengue fever, medical and TCM treatment costs, food poisoning and more. 


Personal Insurance Portfolio

Below is the breakdown of the insurance policy and the coverage amount.

Click on image to enlarge
Click on image to enlarge

My insurance policy comes from AIA, NTUC Income and Singlife.

The reason why they are from different providers are due to pricing, coverage amount, and for diversification purpose.

Conclusion

Everyone insurance portfolio are different due to different circumstances such as income, expenses, family size, children, dependents, housing loan, etc

It is best to constantly review your insurance portfolio as you age to ensure that sufficient coverage is in place.

Do consult with an insurance advisor to find the best approach for your individual circumstances. 

Alternatively, if you are looking for an insurance advisor, I can refer to you the list of insurance advisors that I work with. 

These insurance advisors are people whom I personally have used their service before. 

Feel free to contact me if you want me to refer them to you. 

You can contact me via telegram at https://t.me/Justbeingernest

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