Wealth Management Pyramid
Wealth Preservation
Once you have accumulated sufficient funds and own a sense of security for the future, there’s much more you can do to maximise your financial returns. In fact, the real financial challenge has just begun. You’ve worked hard earning the money and it’s time to preserve it. You’ll need:
UMBRELLA LIABILITY INSURANCE
LONG-TERM CARE INSURANCE
OTHER INURANCES
Umbrella Liability Insurance
*source: https://www.investopedia.com/articles/personal-finance/040115/how-umbrella-insurance-works.asp
Umbrella liability insurance is a type of personal liability insurance that provides you with extra liability coverage to cover excessive claims of regular home insurance, auto insurance, and watercraft (boat and yacht) policy coverage.
It does not only just cover you, but also your family members. It also provides coverage for injury to others or damage to their belongings. However, it does not protect your property.
You can use umbrella liability insurance when you find yourself liable for a claim larger than what your home insurance or auto insurance can cover. Once the limit of your personal liability for the other insurance policies have been met, the umbrella insurance policy will kickin. You can think of it as a secondary policy, with your home insurance or auto insurance as your primary policy.
WHY DO YOU NEED AN UMBRELLA LIABILITY INSURANCE?
You will need umbrella liability insurance if you are involved in activities that puts you at greater risk of incurring excess liability, beyond the general policies.
It is easy to be held liable for events that occur on your property. Umbrella insurance is necessary for you if you:
- Own or rent boats, cars or other vehicles
- Have dogs or dangerous pets
- Are a parent
- Host guest in your home or on your property
- Own rental properties
If you are involved in these activities, there is a higher chance of you being involved in a lawsuit. Hence, umbrella liability insurance is a must as it provides protection against claims and lawsuits from accidents you caused and protect your future income from garnishment.
Long-Term Care Insurance
*source: https://www.careshieldlife.gov.sg/careshield-life/about-careshield-life.html
Long-Term Care Insurance pays you for the loss of income due to an accident or illness. The policy helps to ease your financial loss, but will not completely replace your income before the accident or illness.
CareShield Life
CareShield Life is a long-term care insurance scheme introduced by the government. The objective is to provide basic financial aid should Singaporeans become severely disabled due to old age or unforeseen accidents for their personal and medical care.
It is vital for you to plan early to protect yourself in the event of disability hence, you can consider getting financial schemes like CareShield Life to help prepare you against possible catastrophic long-term care costs.
1 in 2 healthy Singaporeans could possibly become disabled before for an extended period of time.
You could be disabled due to unforeseen accidents such as stroke, worsening of chronic conditions such as diabetes, or due to old age.
Who are entitled to this scheme?
As long as you are above the age of 30 and are Singapore Citizens or Permanent Residents, you will be automatically enrolled into the CareShield Life scheme. Regardless of pre-existing conditions and disability.
On the other hand, if you are born in 1979 or earlier, participation is optional. However, you are still strongly encouraged to join this scheme nevertheless to safeguard your future!
Both short and long-term disability income insurance policies have a period that a person must be disabled before they are able to start receiving disability benefits. This period is called the elimination period.
BENEFITS OF CARESHIELD LIFE
World Wide Coverage
Regardless of where you are staying, you will still be covered under the scheme and be able to make claims, and receive payouts.
Lifetime Cash Payouts
- For as long as you remain severely disabled, you will receive monthly payouts.
- Flexibility in deciding desired care arrangement as payouts are in cash. (E.g. home care or nursing home care)
Payouts stats at $600/month & increases over time
- Payouts will begin at $600 and will gradually increase annually till you are 67 years old or when a successful claim is made.
- Monthly payout amount will be fixed for the duration of your disability once you make a successful new claim.
- From 2020 to 2025, payouts will increase at 2% annually.
Lifetime Coverage
You will be covered for life upon completing payment for all of your premiums, which would happen after you reached 67 years old or after 10 years you join the scheme.
WHEN ARE YOU ELIGIBLE TO MAKE A CLAIM?
You will be able to make a claim if you are unable to perform at least three of out of the six Activities of Daily Living (ADLs).
Washing
The ability to shower or bath, including getting into and out of the bath or shower.
Toileting
The ability to use the lavatory or manage bowel and bladder function through the use of protective undergarments or surgical appliances if required.
Feeding
The ability to eat by yourself after it has been prepared for you.
Walking or Moving around
The ability to move indoors from room to room.
Dressing
The ability to wear, take off, secure and unfasten all garments or any braces, artificial limbs or other surgical and medical appliances.
Transferring
The ability to move from a bed to an upright chair or wheelchair, and vice versa.
Other Insurance
There are isurance products that you probably didn’t know existed and some basic information that you will need to know about them.
CYBER INSURANCE
*source: https://www.trendmicro.com/en_sg/what-is/cyber-insurance.html
With more than 85% of the population in Singapore using the internet, Cyber insurance was the first-ever online risk insurance plan offered in Singapore to protect you and your family in the event of an online breach by third parties.
Cyber insurance provides you with full protection where you can have complete peace of mind for your activities conducted on the internet, including protection against damage to e-reputation, fraudulent transactions on your credit card and theft of personal information.
PERSONAL COLLECTIBLE INSURANCE
*source: https://rafflesprovident.com.sg/personal-collectible/
Personal collectibles are specifically designed for art collectors who require specialist insurance for their collections worldwide. With a flexible approach to your needs, this policy is able to offer you an “All Risks” insurance package to safeguard your precious collection.
What does it covers?
1. Accidental damage and items temporarily removed from your premises
You will have worldwide coverage for your collectibles with complimentary transit cover during removal or temporary storage with a high per article limit for your specified and unspecified items.
2. Restoration costs and depreciation coverage
Receive coverage for restoration and also protection against depreciation of content.
3. Pairs, sets or parts cover
If part of a pair or set of your collection is damaged, you can choose for a Total Loss in return for getting full payment on the pair or set.
4. Automatic coverage for new acquisitions
Covers your newly acquired property automatically up to 25% of your Total Sum insured.
JEWELLERY INSURANCE
*source: https://rafflesprovident.com.sg/jewellery-insurance-guide/
It includes accessories like necklaces, bracelets, rings, and earrings. It doesn’t matter if it’s made of feathers, ivory, precious metals, alloys or gemstones. Everything is worn with pride.
With Jewellery insurance, it would help you to cover the cost of restoration of the insured item in any case of damage. It also covers the cost of depreciation in value after the loss. For jewelleries that come in a pair or set, the value of the entire pair or set is paid when only part of the pair or set is lost or damaged. You have the choice to claim the total loss but you have to surrender the undamaged items to your insurer.
ARTPLUS INSURANCE
Another insurance product that provides specialized insurance for art and collectibles, is the ArtPlus insurance.
Not only does it protect your art and collectibles, it is also a high-value household insurance solution where it covers buildings, general contents, jewelry, and personal liability. It is the only collections-led insurance policy available in the market.
KIDNAP & RANSOM INSURANCE
*source: https://axaxl.com/insurance/products/security-risks
This is usually for high net worth families and corporate entities who have higher risk of having their loved ones threatened or held hostage for a ransom.
The policy covers a range of perils such as kidnapping, extortion, hijacking, and threat. It also includes coverage for 24 hour access to the best global crisis prevention and response service provider in the event of the perils mentioned before.
Do note the following
Andrew Ang
Representing Prudential Assurance Company Singapore
Works with Riverside Trustees Limited and First Light Estate Planning for estate planning services
1142/23Oct24