Pyramid of Insurance Needs


The Pyr­am­id of Insur­ance Needs shows the increas­ing level of insur­ance that every­one needs. The most import­ant insur­ance is to cov­er ourselves adequately on health, the basic one being the nation­al hos­pit­al­iz­a­tion plan, the integ­rated Medishield plan offers by insurer that cov­ers the hos­pit­al bill com­pletely. This is import­ant as we should con­cen­trate on get­ting ourselves well and con­tin­ue with our nor­mal life instead of wor­ry­ing on the fin­an­cial bur­den.

Next on the pyr­am­id is pro­tec­tion against death, total per­man­ent dis­ab­il­ity and crit­ic­al ill­ness. This is rarer than hos­pit­al­iz­a­tion, but if it hap­pens, it will cause a lot of fin­an­cial and emo­tion­al strain on the fam­ily. We would like our fam­ily mem­bers to con­tin­ue their life as nor­mally as pos­sible. Hence, a com­pre­hens­ive cov­er­age with suf­fi­cient pay­out will help our fam­ily mem­bers to tide over the dif­fi­cult peri­od.

After we have adequately covered ourselves, we will then seek for oppor­tun­ity to save and invest to ensure a con­tinu­ity of good life for our fam­ily mem­bers. Fam­ily with chil­dren should con­sider edu­ca­tion policy to ensure and lock down a fixed sum of money for the children’s ter­tiary edu­ca­tion for a prop­er head-start in life.

And when we reach age 55, we should buy an annu­ity insur­ance policy that will pay us income, with increas­ing amount every year, as long as we live. We should be enjoy­ing our retire­ment years, without wor­ry­ing of lack­ing of income to sus­tain our every­day expenses.

Down­load the Fin­an­cial Needs Ana­lys­is spread­sheet now to determ­ine the amount of funds required for the vari­ous areas of insur­ance cov­er­age!

Ginny Lim Gek Eng
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