You will be able to list the insurance you already have before you buy anything.
If you're a Singapore citizen or PR with a job, you probably already have at least three layers of insurance cover. Most first jobbers assume they have none because they've never bought a policy. This is only about listing the cover you already have, not recommending any product. Before you meet anyone who wants to sell you insurance, write down what you already hold, who pays for each piece and when each one ends.
Hui Min had been working for two weeks when a friend from secondary school messaged her. He's now a financial adviser and wanted to "do a quick review" of her insurance. She agreed to meet him for coffee. Then she realised she couldn't answer the question he would probably ask first, which was what cover she already had.
MediShield Life is the basic national health insurance scheme. It covers all Singapore citizens and permanent residents for life, including people with pre-existing conditions, and you don't have to apply for it. Premiums can be paid from MediSave, so most working adults never see a bill for it. It stays with you whatever happens to your job. Confirm that you have it and put it first on your list, with a note that MediSave pays the premiums and the cover lasts for life.
The scheme is designed to help with large hospital bills. It covers stays in subsidised wards and some costly outpatient treatments, such as dialysis and chemotherapy. It leaves part of most bills for you to pay through deductibles and co-insurance, which are the parts of a bill you pay yourself. It also has claim limits for each type of treatment. The Ministry of Health and the CPF Board publish the details and current premiums by age on moh.gov.sg and cpf.gov.sg. Lesson 4.1 of the course "The Singapore personal finance system, end to end", titled "Hospital bills: what basic national cover pays and what shield plans add", explains in more detail how a hospital bill is split between MediShield Life and the patient.
The Dependants' Protection Scheme (DPS) is a term life insurance scheme for CPF members. It pays a lump sum if the insured member dies, becomes terminally ill or is permanently disabled, up to an age limit. Members are generally covered automatically once they start making CPF contributions from work. Premiums are paid from CPF savings unless the member opts out.
DPS exists whether or not your employer offers group life cover. Everyone gets the same modest amount, whatever their family situation, and while it won't replace years of income, it is real cover that belongs on your list.
Your DPS status may surprise you. Some people opted out years ago and forgot, and some never started paying because of a gap in contributions. It takes a couple of minutes to log in to the CPF Board website with Singpass and check your DPS status, current cover amount and premium.
The third layer is the company group plan you mapped in module 3. Hui Min's plan includes hospital and surgical cover up to S$20,000 a year, outpatient and dental cover, and group term life of S$96,000 (example figures). Copy your own plan's items from your benefits map from lesson 3.4.
Lesson 3.2, "The gaps: cover that ends when the job ends", explained that group plan cover is tied to the job and usually stops on your last day of employment. So every group plan item on your list gets the same note: ends when I leave this employer.
People often forget a possible fourth layer. Many Singapore parents bought policies for their children when they were young, such as a hospital plan, a whole life policy or an endowment plan. Some of these are still running. Some are still paid by the parents, and some are now expected to be paid by the child.
Ask your parents about any policies they bought for you. A policy bought years ago may already cover some of what an adviser would suggest, or it may be a savings product with no protection value at all. Either way, it goes on the list, with what it is, who pays for it and when it ends.
When Hui Min asked, she found out her mother has been paying for an old hospital plan since Hui Min was ten. Before the coffee, she wrote her list:
MediShield Life DPS cover, confirmed on the CPF website her company group plan, with each item marked "ends when I leave this employer" the old hospital plan, paid by her mother
Because she had the list, the coffee started from what she already had, and her friend had to explain what, if anything, was missing. Bring your finished list to any adviser meeting so your conversation starts from what you already have too.
Your list will look different, but it uses the same sources: the CPF Board website for MediShield Life and DPS, your benefits map from lesson 3.4, and a conversation with your parents.
Write down every policy and scheme that covers you, what each one pays and when it ends.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).