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Dummies Guide to Insurance

You know insurance coverage is essential but it is overwhelming to find numerous plans catering to different needs out in the market. What’s more it is a chore to take time out of your busy schedule to figure out what are the plans available, what protection they offer and at which stage of your life would you need to ‘upgrade’ your portfolio. Don’t worry! We have compiled a list of basic coverage that will help you figure out the various plans you can consider for your different life stages.

Your First Paycheque

Yay! Finding a job is the first major milestone after graduation. As you work hard and climb up the corporate ladder, remember to protect yourself financially by getting coverage for hospitalisation and personal accidents.

For hospitalisation coverage, the determining factor for the type of policy to get would be where would you want to receive treatment from i.e. restructured or private hospital as well as the type of ward you would want to stay in the event you are admitted to hospital. Of course, these might be encompassed in your employee benefit package however these benefits will lapse when you are out of job or after retirement.

There is a long way to go from your first paycheque to retirement, so why the hurry? This is because premiums tend to increase with age therefore it is usually cheaper when you get yourself protected young.

On top of hospitalisation, you can look into term life insurance with critical illness (CI) coverage. Industry statistics has shown that it takes approximately 6 years to recover from critical illness i.e. cancer and stroke etc. Not only is the treatment costly, it is a tedious and lengthy process, which would potentially affect your lifestyle if you were not financially covered.

Your First Key

After your first job, the next BIG thing to look forward to is getting married to the love of your life and building your home together. Together, the two of you spent thousands of dollars on renovation to achieve the look for a perfect place to call home. However, what happens if something unexpected happens to either of you and mortgage repayment becomes too heavy a burden? Besides life insurance, mortgage protection will help to pay off your home loan if the breadwinner is diagnosed with a terminal disease or pass away unexpectedly. This helps you to ensure that the impact on the lifestyle of your loved ones will be kept to the minimum in the event of unforeseen situations.

Your First Kid

Aww, isn’t the little one the cutest thing on Earth? Every parent says that having children is one of the greatest gifts life can bless us with. As we welcome the baby into the world, we know our lives will never be the same again. From this point onwards, your income is not just to save up for your next trip to Alaska anymore. With your newborn, he or she is relying on you for all their needs. To ensure that you will be able to protect them in all circumstances, do look into your total and permanent disability (TPD) coverage on top of your term or whole life insurance. TPD helps to take the pressure off you financially and ensure your loved ones can be taken care of even if you suffer an illness or injury resulting in you totally and permanently disabled.

Still unsure of what you need to get yourself protected for? Head over to Ottermise and have a whirl with our needs analysis. You’ll be surprised, but it takes less than 3 minutes to get an idea of what you need!


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