In my field of doing financial planning with clients, one of my duties is to have a discussion with me asking questions (on the emotional side) and have the clients realized the importance of doing a financial planning.
One of the area that you need to look into is on your Critical Illness Protection.
Many people may be just relying on their Medisave and Medishield Schemes to pay the costs of their medical treatment (the number #1 killer in Singapore is Cancer). However, you should know that Medisave and Medishield have their daily limits and the available quantum may just be not enough to pay for the cost of prolonged hospital treatment or a major surgery.
If you are curious to know what is Medisave and Medishield all about, here is a list of useful links:
- List of Benefits and Limits Of Medishield (a .pdf file)
- Explore everything you need to know for your Medisave and Medishield
As such, you may need to have other source of funds to help pay for this kind of medical expenses – both for you and your immediate family members.
Another reason is that unlike death, being stricken with a Critical Illness may present to you a long-term financial strain. Think of this, beside being have to endure a significant initial and ongoing costs of treatment, you (as an income earner) will need to have some form of protection against the issue of a loss of income as you will probably by unable to work during this prolonged period of recuperation.
Therefore are you ready to understand more of yourself in terms of Critical Illness Protection, to really see if you need to start planning or to enhance?
Questions To Assess Your Current Situation
- Do you have any standby plans for the possibility of striking a major illnesses like Cancer or Heart Attack?
- What do you think it would cost for medical treatment or if you do have Cancer?
- What amount do you think is appropriate as a good start off in terms of getting a coverage against Critical Illness?
- How much would your family need to tie them over the difficult period (when you are unable to work) during your diagnosis/treatment?
- Think hard and think well, is any insurer currently covering you for critical illness?
Questions To Assess If You Will Face Any Problems
- What difficulties would you face in your career if you were to contract any major illnesses?
- Can you and your family cope with the medical bills?
- Where would you find the money to maintain the on-going medical bills?
Questions To Assess If Anyone Around You Will Be Affected
- What diffculties would you face in your career and your family if you were to contract any major illnesses?
- How would you feel if you were a “Financial” burden to your family?
- What could possibly happen to your family if you were really a “Financial” Burden?
Questions To Assess If You Are Ready For A Solution
- How would you feel if you were still able to provide for your family in the event of any unforseen health mishap?
- How would your family think of you then?
- What Difference would that make to you and your family having being able to protect them from any financial hardships?
- What benefits do you see if you are able to cater to your Critical Illness Planning?
- What would your other half and children think of you then?
If any of the above questions do a strike a chord in you and you feel a certain numb inside you, it’s really time to speak to a Financial Planner to do a proper planning for your Critical Illness Protection.
Do remember that Insurance Companies will only take in your risk when you are still a Healthy Person.
You can also save more premiums when you get your protection early.