Post Retirement Insurance Protection | Insurance Plans in Singapore

So you completed the Singapore education system and now have a job that provides a decent wage. You’re even putting money aside and investing for long-term goals like retirement. In this blog, we tell you about post-retirement insurance protection. 

Unexpected circumstances have the potential to deplete your funds

It’s far easier to lose money than it is to make it. Consider how long it takes you to accumulate a six-figure sum. A single stay in the hospital, on the other hand, can completely demolish it. Insurance can help protect you against this. For example, if you have insurance that covers your medical expenditures, you won’t have to worry about depleting your savings if you are hurt or become unwell. Insurance is an expense since you must pay premiums to the insurer in order to continue receiving protection. However, this is one item that you should not skimp on because it may prevent you from worse financial losses in the future.

The combination of insurance coverage you require while you are young does not remain constant throughout your life. For example, if you’re in your working years and supporting a family, health insurance and critical illness insurance can shield you from the financial consequences of illness. However, rates climb with age, which may cause you to reconsider the cost-effectiveness of certain insurance policies. In contrast, some types of insurance, such as long-term care or disability insurance, may become increasingly important as you get older.

Post Retirement Insurance Protection

Insurance for hospitalisation

One of the most important types of insurance to obtain in Singapore is hospitalization insurance, which covers the expense of medical treatment if you are hospitalized. If you don’t have any other insurance, this is the first plan you should look at. Singapore citizens and permanent residents are already covered by MediShield Life, a very minimal type of health insurance. However, because MediShield Life is intended for usage in B2/C wards at public hospitals, the claim limits are rather low. Any remaining amounts must be paid in cash or from your MediSave account, which is subject to withdrawal limits.

In other words, if you end up in the hospital with only MediShield Life, you’re out of luck. Also, in order to augment your MediShield Life coverage, insurers have devised a product known as the Integrated Shield Plan (IP). Because it does not need to duplicate your existing MediShield Life policy, this is one of the cheapest forms of hospitalization insurance in Singapore. Reduce your protection to cover a lower ward tier, which can usually be done by scaling down on your riders or upgrading to a lower-tier plan, to keep your premiums bearable as you age without losing protection entirely.

Insurance for long-term care

CareShield Life is another government programme that you may be unknowingly covered by. If you become severely incapacitated, this long-term care insurance plan will give you a monthly benefit. CareShield Life already covers anyone born in 1980 or later and over the age of 30. If you are young enough to remember life before the internet, you will be registered in the scheme when you reach the age of 30.  If you are unable to perform at least three of the following Activities of Daily Living (ADLs) without assistance, CareShield Life will pay you a monthly benefit starting at $600. These ADLs are washing, dressing, feeding, toileting, mobility, and transferring.

Most insurers restrict the age range at which you can sign up for their CareShield Life supplements to a specified range, often ranging from 30 to 60+. Signing up at a younger age tends to minimize not just your annual premiums, but also the overall amount you will pay over the course of the premium payment period. So, you can save money by signing up once you reach the age of 30 to lock in a cheaper rate.

Why Should you Have Post Retirement Insurance Protection?

At the end of the day, insurance exists to safeguard your finances. However, if you overdo it, you can end up like that child who barely sleeps because he has 20 hours of tuition per week – in a worse situation overall. In other words, insurance is vital, but not so much that you should spend all of your money on it. As a result, it’s wise to gradually determine your specific insurance needs and get only the amount of protection you require.

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