Investment Stress Test by Zest Chia

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I Came Across This...

We can learn from this lady's account

Hey ,


I came across this post on Reddit, and I believe we can all learn from it and conscientiously remind people around us about the importance of good risk management, especially concerning insuring ourselves against financial turmoil caused by health challenges.


With the increasing medical costs, simply having 'Insurance' doesn't mean you are prepared until life throws a curveball at you.


Understanding how much coverage you have and how long it will last is key to knowing if we are adequately protected.


Below is an excerpt from the forum writer's account.


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Let's delve into some of the concerns shared by this individual regarding the challenges they face while dealing with an illness and relying solely on one source of income:








All of these concerns underscore the importance of adequate personal medical and life insurance coverage for critical illnesses. This aligns with the advice provided by the Life Insurance Association.



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Considering this lady's annual income of $14,000 per month, she would minimally need to insure herself for $672,000.


However, with only $450,000 in savings, she falls slightly short of this amount. Relying solely on savings, especially ones accumulated from a single income source, isn't advisable for self-insurance.


And here's the thing: even if she tightens her belt and stretches that $450K, what if she has a relapse?


That's a long stretch without any income! And sure, she could sell her place and downsize, but who knows how that'll turn out? It's a gamble, really.


Honestly, I can't stress enough how important it is to have insurance. Relying solely on savings isn't a smart move, especially when you've worked hard to save up that money from just one income source.


And on a related note, please be reminded about the changes to the Integrated Shield Plans.


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Starting April 1st, only medications approved by the Ministry of Health and listed in the Cancer Drug List will be covered.


If you need a refresher about your own coverage, hit me up.


I'm here to help!


Oh, and keep an eye out for my emails. I'll be sharing updates on hospitalization plans from different insurers so you're in the loop.


Have a great weekend!

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