This article is contributed to us by Thomas Lee, Chief Product Officer of Manulife Singapore
With inflation pushing up the cost of living year after year, many Singaporeans are facing challenges in maintaining their purchasing power, especially for essentials like housing and transportation, according to the Manulife Asia Care Survey 2024. As people tighten their purse strings, they naturally start trimming what feels less urgent. Unfortunately, health often ends up on that list.
Moreover, as lifespans increase, the importance of planning for long-term health becomes even more critical. Longevity means not only more years of life but also more years to protect financially. Furthermore, 64% of Singapore respondents shared that there’s little left to allocate towards their health after covering costs for daily necessities. This also means that people are delaying insurance purchases until “they can afford it”.
However, this delay can be costly. There’s already a 74% gap in Critical Illness (CI) coverage in Singapore which means that a significant number of people with insufficient protection against major health conditions. As medical inflation persists, delaying insurance doesn’t just mean paying more later, it could mean facing a health crisis without any financial safety net. Insurance shouldn’t be viewed as just another bill; it’s a safeguard against life’s unexpected shocks.
Buy in good health, for bad times
The best time to get insurance is when you are healthy and eligible, not when a medical crisis strikes. Much like how we wear seatbelts, you do not wait for an accident to buckle up. You wear it every day, just in case. Likewise, this approach should apply to financial protection.
Take Ms Julia How, for example. At 50, she found herself taking on unexpected costs when her 78-year-old mother suffered a stroke in 2023. Although most of the medical bills were covered by MediShield and MediSave, her family incurred substantial and unexpected out-of-pocket expenses. These included more than $15,000 on essential items such as clearing her mother’s home of excess items, outfitting the home with new furniture and installations (such as ramps) for mobility and safety reasons, assistive equipment such as wheelchair and recliner chair; alongside a recurring expense of $2,000 monthly for a helper and other household and medical expenses. If her mother had CI coverage, that payout could have made a big difference in easing her family’s financial strain.
Tailored Insurance Solutions for Every Life Stage
Your insurance needs do evolve over time as you progress through different phases of life. Therefore, you should periodically review your insurance portfolio to ensure it remains aligned to your current circumstances and financial goals.
#1 Singles and young couples
Those at the beginning of their financial journey should start with a hospitalisation plan. These cover big-ticket medical bills and often include some outpatient care too. This is a great first step toward building a financial safety net.
With cancer being the leading cause of death in Singapore, a CI plan offers peace of mind with financial support such as lump sum payouts that can go towards medical bills and act as an income replacement when one is unable to work during treatment and recovery.
The Manulife Early CompleteCare (MECC) is a CI plan that meets these needs. It covers 126 conditions across early, intermediate, and advanced stages. Unlike basic plans that end after one claim, MECC’s “Cover Me Again” feature allows for up to four separate claims[1] for different conditions. It also includes a Recovery Care Plus Benefit, which pays up to $25,000 if you’re admitted to the ICU or ICU combined with a High Dependency Unit [2]stay.
Premiums increase with age, so starting early is cost-effective. Ms How experienced this firsthand when she tried to enhance her own CI coverage after her mother’s stroke. Due to her age and pre-existing conditions, the premiums she needed to pay were significantly higher.
#2 Growing families and senior dependents
If you are supporting others, consider adding plans that balance protection and long-term financial growth. Insurance savings and endowment plans can provide the best of both worlds – guarding against life’s uncertainties while steadily building wealth. Available in a variety of durations, you can pick the one that is best suited for your financial goal and preferences. These plans often come with guaranteed returns, which can add a nice layer of financial stability. The returns can also support milestone expenses like children’s education, home upgrades, or retirement.
#3 Affluent individuals
Once your basics are covered, think long-term. Legacy insurance plans such as Universal Life (UL) policies are smart tools for estate planning. They offer a death benefit for your beneficiaries, while also building a cash value you can access during your lifetime. Unlike property or stocks, these plans offer liquidity and flexibility, giving you peace of mind and financial options
The best time to start? Sooner than later.
Many people only realise the importance of insurance when it’s too late – when premiums are high, or when coverage is no longer an option. Start small. Start early. And make it a habit to review your coverage at every major life milestone.
By integrating both protection and wealth-building strategies into your financial plans, you can ensure peace of mind for yourself and your loved ones tomorrow.
[1] 100% of basic sum insured will be payable upon diagnosis of a critical illness after 12 claim-free months from the last CI claim or first payment start date of Continuous Cancer Income Option (where applicable), subject to:
(a) a maximum of 4 claims, and
(b) the new diagnosed condition not having been claimed under the basic plan.
[2] The life insured must stay in ICU or ICU plus HDU for 4 consecutive days or more from the date of admission in one hospital admission in Singapore.
Important Notes
Manulife Early CompleteCare and its supplementary benefits are underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 19802116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Premiums are not guaranteed and may be adjusted based on future claims experience. Manulife reserves the right to vary premiums at any time by giving 30 days’ written notice to the policyowner before doing so. Buying health insurance products that are unsuitable for you may affect your ability to finance your future healthcare needs. This advertisement is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract. If there are any differences between the English and Chinese versions of this brochure, the English version will apply.
This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites (www.lia.org.sg or www.sdic.org.sg).
We recommend that you seek advice from a Manulife Financial Consultant or our Appointed Distributors before making a commitment to purchase a policy.
