How much should you spend on insurance? With a generous bonus or increment, you may be looking to increase your coverage and add policies. Conversely, you may be bracing for a leaner year and looking to trim your budget (no shame in that, we all go through hard times).
We ask Stanley Hon Seong Kong, a licensed and independent financial adviser, and Lai Choy Ha, a professional estate planner and certified financial planner, about the crucial coverage and policies to get at different stages in life.
If you have prenatal or infant children…
You should have sufficient coverage on illness and death benefits to ensure, in the face of any catastrophe or accident, your dependents (mostly your children) will have stability at least until they have completed their tertiary education. For your children, the focus should be on both medical and child-specific illness policies. Do also consider preparing some funds for your children’s future education – it can be a combined portfolio of investments made up of equities, unit trusts, insurance, and properties.