This post is not sponsored by any agency or agent. It merely reflects my thoughts towards insurance.
I wrote a draft of this some time ago and finally got down to finish it properly.
I hate insurance. There i said it.
I mean how can you not hate something, that makes you pay money month after month ?
And while you are doing it, you scroll through the social media posts of the friend who sold you the policy showing off his sports car, his million dollar round table dinner, the awards, the flashy posts about ‘making it’ in Singapore.
It makes you wonder where the premiums you pay go to doesn’t it ?
Do you really need the policies ?
Take out that damm file whoever sold you your policy prepared and read it.
If the words don’t make sense to you, it’s time to call up that friend or pretty girl who you bought that policy from. Make them work for their money and explain every damm line to you in layman English.
You need to understand what you are paying for every month, and most importantly, what are you getting ?
Everybody’s needs are different, so you have to be clear what you need.
Don’t say ‘don’t know, don’t know, anything, chin chye’
They are called financial planner for a reason, tell them your needs, then let them plan it for you.
It doesn’t mean you need to accept everything they propose, look at their proposal, so your sums, and adjust accordingly.
You want chicken rice and only chicken rice, if the seller piles on braised egg, gizzards, char siew and a side dish of bean sprouts, are you going to just accept it?
Of course not.
Below is a list of policies i accumulated over the years. As i grow older and my need changes, i have no choice but to get more. The policies are not for me, they’re for my family in case i’m no longer around when they still need me.
Term life policy (1 Million coverage )
In layman English, this policy covers me up to age 70. Premiums are managable because the coverage stops at 70.
As long as i’m dead, it pays out 1 Mil to my beneficiaries.
1 Mil is enough to clear the mortgage on the house with enough to spare for my kids up till they are 23.
There, it cannot get simpler than this.
I know very clearly what i want with this policy, i know how much i’m paying, and what am i going to get if i die.
But wait James, what happens if it’s not enough for your kids when they turn 24?
I am not getting a policy so my kids can live a life of luxury when i’m dead. With a fully paid roof over their head, and enough to last through local university, i think i’ve done enough for a ‘dead father’
But wait James, then after you turn 70 how ?No more coverage ?
When i’m 70, my kids will be turning 40! If they still need to depending on the policy when i die, i would have failed terribly as a father.
Summary : This policy is for the kids and house when they are still dependent on me. Period. After they are grown up, they have a life and career of their own, they won’t need this. I also plan to clear my mortgage before i retire.
Hospitalization policy – Medishield life plus with integrated plans from private insurer.
In layman English, this one pays for your hospitalisation bills.
This is Singapore brother. It cost less to die. Funeral bills average 20000 for a simple one. If you are hospitalised for whatever reason, the bills are going to start stacking.
Medishield provides the 1st layer of buffer for all Singaporeans, if you can afford it, upgrade it to a integrated plan.
This policy will take care of the bills when i’m in hospital. It’s as simple as that.
With this, i know when i’m lying on the bed trying to recover or fighting for my life, my family don’t need to worry about the bill.
Premiums increase as you grow older but this is a must have in my opiniion.
You can be fit as a fiddle now, but everyone grows old. I don’t want my kids to be saddled with hospital bills trying to keep me alive.
Summary : You need this. Even if you don’t have kids, a wife, or elderly parents, you need this. The last thing you want to worry about when lying on the hospital bed, is the fucking bill.
Accident/Critical illness/Life policy – a mish mash of different polices i got from age 13 till today.
Accident policy – This is something additional i got. I’m covered for 600k if i die, or when i’m severely disabled to the point i cannot work or
masturbate or surf porn take care of myself. This is for my parents actually. 600 is more than enough for them to live out the rest of their days if i die.
Critical Illness – You get diagnosed with the list of terminal illnesses, they payout right away. This usually stacks with your other policies. This is it man, the doctor tells you you are done. Fuck the work, the career, politics. It’s game over. He certifies it and all the policies payout. You have the next few months or years to plan out what to do. I have pretty low coverage for CI, only 100k.
Life policy – I have only one bought when i was 13. Premiums are low, payout is low too. I intend to carry on paying till well past retirement. After that, when i need the money, i will encash it.
Care shield Life – This is something that policy makers devised
and stuff it down your throat like a dildo to take care of us when we are old and useless can no longer take care of ourselves.
There’s one fact of life you cannot change, we all grow old. It happens to everyone.
Doesn’t matter if you can run a marathon under 7 minute or swim an Olympic gold, We all grow old.
This provides monthly payout in the event you are unable to perform 3 out of 6 ADLs (activities for daily living)
This payout doesn’t just apply when you are old, it applies as long as you cannot perform the ADLs due to whatever reason.
The policy is compulsory depending on your age, and it pays out every month.
You have to determine how much you need a month.
Basic payouts from the CSL is 600 a month, this increases by 2% every year for inflation.
600 is far from enough to hire a helper and get the necessary shit i need if i’m in a state when i cannot take a piss on my own.
I don’t want my kids or my wife to be burdened by the cost of helping me change diapers
or lingerie if i develop a crossdressing fetish after i fucked up my spine or body. or bath when i’m still alive.
Oh James, i realised you did not leave anything for your wife!
She’ll have the house, my savings, my investments. And i’m confident the woman i married can take care of herself when i’m no longer around. My main concern is not about leaving nothing, it’s about being a burden.
To sum it up, i’m paying for these because of my family. If you hate your wife, have no kids, parents have passed on, you’ll probably get away with paying for a lot less. At the very least, you still need to get the hospitalisation plan. Surely you don’t want to dip into your savings or investments to pay for hospital bills right ?
Having said all these, no one in their right mind will want to make a claim. We all want to be healthy.
I have friends who collected full payout for CI and life policies, turning them into instant millionaires. 1 of them is no longer around, the other one is just watching the clock tick by. It sucks but at least the family is provided for.
Money cannot buy health. It cannot buy time with your love ones when the gravel lands and the big man decides your time is up.
One thing it can buy though, is a peace of mind.
Buy that insurance, and hope you never make a claim.
Do your math, even if you cannot afford the premiums to get the amount of coverage you ideally need, at least get cover for what you can afford now. No chicken rice for lunch, at least get a curry puff so you don’t go hungry.
So what if you pay for your policies your entire life and don’t make a claim? So what? it doesn’t mean you got a bad deal or anything.
Consider it a privilege, a gift, a blessing.
Live a long, healthy and happy life, diseases and ailment free.