Question:
What are the first few insurances should one get? Just graduated, just started working?
DollarsAndSense Answers:
In general, there are three types of insurance policies. Health, life and general insurance. As a young working adult, let’s focus on health insurance. Health insurance is designed to protect you from hefty healthcare cost, or the associated cost of falling ill.
As young graduates entering the workforce, our ability to work is our biggest personal financial asset. However, health matters can steal that ability from us in a heartbeat. If that happens, not only would we be unable to work and earn an income while recovering, we will also incur potentially hefty healthcare cost.
A private integrated shield plan pays for our hospitalisation cost. A critical illness plan gives us a lumpsum payout if we are diagnosed with a major illness. Disability income insurance provides income in the event that we are no longer able to work due to disability. All these different insurance plans provides an individual with holistic healthcare coverage. Of course, you should also strive to live a healthy life as well, even after getting these coverge.
Watch how much you are paying for your policies. It’s better for you to have basic coverage that you can afford, than to have comprehensive coverage but to end up paying too much for your premiums that you have to terminate some plans in the future. You should always buy an insurance policy with the mindset that you intend to hold them till the policy coverage is over.
Read More: What Types Of Insurances Should Fresh Graduates In Singapore Buy