John Tan, 20, single.
Full-Time National Serviceman (NSFs). Going to University overseas after his ORD.
For John, the MINDEF & MHA Group Insurance's Core Scheme (paid for by the government) offers enough coverage for now. At S$150,000 for life insurance coverage and S$150,000 for personal accident coverage, this may seems adequate. After all, he is young, an NSF and has no dependents.
But because he is a Singaporean guy with an eye for bargains, John takes up the MINDEF & MHA Group Insurance's Voluntary Scheme because hey, it's pretty affordable! Also, he knows that he won't have exclusions under the plan as compared to if he waits until he's older and say, acquires a chronic illness. So he upgrades his insurance coverage to S$600,000 at S$24.60 a month.
Once he goes to university, he will be incurring a student loan and other bills while not yet earning a full income. As he will be studying overseas, he will have higher expenses too, for example, car expenses. Having higher coverage means that if the worst happens, he won't leave the burden of paying off bills and loans to his aging parents.
John also understands that due to their age by the time he graduates, his parents may eventually be financially reliant on him. So once he starts working, he intends to take advantage of the MINDEF & MHA Group Insurance's affordable premiums which can cover him for up to S$1 million. This will ensure that he can pay off his parents' living expenses for a number of years if he’s no longer around.
James Tan, 32, married with two kids.
Sole breadwinner – works as a pharmacist.
Operationally Ready National Servicemen (NSmen)
A family man, James takes up the Voluntary Scheme under the MINDEF & MHA Group Insurance. He takes advantage of his SAF privileges by opting to increase his coverage to S$1 million at S$41 a month and also buys policies for his wife and children via the dependant's scheme offered by the same plan.
James is aware that the Core Scheme only covers him while he is on duty (e.g. during his annual In Camp Training). And being in the field of healthcare, he realises that illness or injury needing long-term recuperation may result in a loss of income for him. He wants to ensure that his family is well-covered in unfortunate circumstances, so he also opts to buy riders such as the Critical Illness Rider and Disability Cover which will take care of daily living expenses, education fees or even long-term care costs whilst he recovers from critical illness and is unable to work.
So which brother are you?