Many neglects insurance planning in their retirement portfolio. They focus merely on building wealth to create passive income for their retirement expenses. As we grow older, the reality of fragility of life becomes more apparent as health concerns start to emerge in many different factors. Illness is one factor that can sap away your hard-earned wealth in a jiffy. And insurance portfolio is the only tool that can protect your wealth at your old age. Below are two important insurance plans that you should incorporate into your retirement plan:
The cost of hospitalization in Singapore alone can drain one’s life saving. It is imperative that you hold on to your hospitalization coverage throughout your life. The premium increases every age band, and it escalates exponentially when you reaches above age 65. So do incorporate the insurance premium payments into your retirement planning.
In Singapore, Critical illness plan covers 37 types of illness that attacks a person’s major organs -heart, kidney, liver, lung; and major illnesses like cancer, dementia, Parkinson’s, blindness, deafness, etc.
With medical advancement, many treatments are done outpatient. And because of the seriousness of the illness, one may need a caregiver to take care of he/she during old age. Critical illness plan pays a lump sum payout to give you medical emergency cash without having to dilute your retirement capital that is meant to give you passive income for monthly expenses. In today high inflationary era, Insurance is a life’s necessity. Because in a race against death, no one can wins against it.
