What types of insurance do you actually need

Not all insurance is created equal. Some plans are essential, like hospitalisation coverage, while others are more like extras you can consider. The trick is knowing what you need right now versus what can wait until your income or responsibilities grow.

Let’s break it down.

Insurance is about managing risk. You protect the things that would cause you or your loved ones the most financial stress if they were suddenly taken away - your health, your ability to earn, and your life.

Key insurance policies

1. Health insurance
   Covers medical costs from hospital stays, surgery, and certain treatments.
2. Critical illness insurance
   Gives a lump sum if you get diagnosed with serious illnesses like cancer or stroke. Helps cover income loss and treatment costs.
3. Life insurance
   Protects your loved ones financially if you pass away or become totally and permanently disabled. Usually more relevant when you’ve got dependants like elderly parents and/or children.
4. Personal accident insurance
   Pays out if you're injured in an accident. It can be useful if you ride a bike, play sports, or travel a lot.

If you’re still studying or have just started work, health insurance is usually the top priority. The good news is that Singapore Citizens and PRs are automatically covered under MediShield Life which takes care of large hospital bills and selected costly outpatient treatments. 

Assess your insurance needs as your income grows and you have people in your family depending on you.