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Old 05-12-2018, 12:00 PM   #1
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Join Date: Dec 2018
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Accidental and Death and Total or Permanent Disability

Hi,

I am new here and glad to find a place to ask about insurance. For Accidental and Death and Total or Permanent Disability Insurance, may I know if it is possible to buy multiple of them and be able to claim from all if 'situation' does happen? Are the prices for premium generally quite close amongst the insurance companies ? Any to recommend?

I am looking into this because, I am a single parent at 51 and I was homemaking for last 18 years, I do not have savings for retirement but just sufficient for living for now. I have no debts and no mortgage to service. I also have no insurance coverage to protect myself except for the government ones Incomeshield and Eldershield. I am thinking of getting a few of the TPD type of insurance for my 2 children as the annual premium is affordable and I will put myself as beneficiary. This is so that if anything happens to them, at least I can have a sum of money to take care of them and myself. I appreciate any advice for my situation.

PencilTree
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Old 05-12-2018, 03:06 PM   #2
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Join Date: Jun 2010
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For Accidental and Death and Total or Permanent Disability Insurance, may I know if it is possible to buy multiple of them and be able to claim from all if 'situation' does happen?
First of all, "Accidental Death" insurance is completely dumb, and I'm not even going to qualify that. DO NOT BUY.

Who cares how you die? I mean, can you imagine the conversation?

Hospital: "PencilTree's Child, it's Changi General Hospital. I'm sorry to inform you that your beloved mother died."

Child: "Oh, that's terrible! But, may I ask, how did my mom die?"

Hospital: "She got run over by a bus."

Child: "Woo hoo! Hurray! PARTY at my house!"

....Or....

Hospital: "We believe she suffered a massive stroke at her desk at work."

Child: "Oh no! That's really, really horrible!"

Are you kidding me?!?! Either you're dead or you aren't. It simply doesn't matter how you died. Just think about this for half a minute, and you'll figure it out. AD is a joke policy, designed to pull on your heart strings and in no way a sensible thing to buy. Run away -- and watch out for buses.

What you actually need is term life insurance, which pays a benefit to your surviving dependent(s) if you should die before the term ends, such as before your 65th birthday. However, you should NOT buy life insurance unless both of these circumstances are true:

1. You have one or more dependents, at least one person who is financially dependent on you (not merely sad if you were to die);

2. You cannot afford to self-insure. That is, the assets that you would leave behind would not be sufficient to protect your dependent's (or dependents') basic lifestyle needs.

You seem to fit both requirements, so you should have some term life insurance. At your age and in your situation term to age 65 seems quite appropriate, or perhaps even term to 70 if you expect to be working past 65 for a more solid retirement foundation. Often the decision on the appropriate term will depend on when your youngest child should be out of university or celebrate his/her 24th birthday -- something like that.

Ordinary, simple term life insurance covers practically all causes of death. If you get run over by a bus, suffer a massive stroke, die from cancer, whatever, whatever, it pays, if you die before the term ends. Who cares, it'll pay. The few exceptions typically include suicide and participation in armed conflicts.

Term life insurance sold in Singapore generally includes "Total and Permanent Disability" (TPD), which basically means that if you're disabled, usually defined as not being able to perform at least 3 out of 6 defined Activities of Daily Living with an expectation that'll be a permanent condition, then the life insurance will pay a benefit. However, ElderShield is TPD insurance, so you already have a little. And TPD is no substitute for Disability Income Insurance (DII) in my view.

If you are a NTUC member and/or have DPS (paid from CPF), then you have a little term life insurance already. Check those figures and policies first, then decide whether you need to add some more. Since you're home is free and clear, that's helpful. Your survivor(s) would simply need the other basic necessities of life, including home maintenance expenses, until he/she is old enough to earn a living.

Are the prices for premium generally quite close amongst the insurance companies ? Any to recommend?
Yes, you can go to compareFIRST.sg and compare highly standardized term life insurance policies. That's really the best way to go for these needs.

I am looking into this because, I am a single parent at 51 and I was homemaking for last 18 years, I do not have savings for retirement but just sufficient for living for now.
And you need to put some effort into fixing this, too. CPF is your dear friend here, so get cracking if you haven't started already. Try to top up your Special Account (now is a great time if you haven't claimed 2018 tax relief yet and can), get your Ordinary Account funds transferred into your Special Account, and so forth.

I also have no insurance coverage to protect myself except for the government ones Incomeshield and Eldershield.
IncomeShield is not government insurance. It's an Integrated Shield plan that adds some hospitalization coverage to the government's MediShield Life. You may wish to review that coverage for you and your immediate family to make sure that it's appropriate and cost effective.
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