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Meeting healthcare needs early pays off in the long run

Civil servant Kwek Bing Wen is concerned about taking care of his healthcare needs while meeting his other financial goals at the same time.

Civil servant Kwek Bing Wen is concerned about taking care of his healthcare needs while meeting his other financial goals at the same time.

Said the 29-year-old: “If anything happens to us, it’s best if we can depend on ourselves. As our population is also ageing, we can’t expect our future generations to look after us.”

He has two younger siblings, the youngest of whom has a learning disability. Although he doesn’t have to support her financially at present, he is prepared to step up should the need arise. One way he’s done this, and saved money in the long run, is by planning early for his healthcare needs.

SAVING MORE BY STARTING EARLY

Mr Kwek bought two protection plans and a retirement endowment plan with protection. He bought his plans about one year ago, immediately after he had finished paying for his university loan.

“The older we get, the higher we’ll have to pay for our premiums, so why not start while I’m still young? Since I’m still young, I see no reason why I can’t spend a bit more now to cover my healthcare needs in the future.”

Mr Kwek purchased two protection plans, MyShield and MyHealthPlus, from POSB. He also bought a life insurance endowment plan, MyRetirement, from the bank. MyShield complements the government’s MediShield Life programme, providing greater coverage for medical expenses. MyHealthPlus offers additional protection, such as critical illness coverage. MyRetirement offers a monthly guaranteed retirement income for 10 years after a customer’s chosen retirement age.

MANAGING HIS EXPENSES

Mr Kwek made it a point not to overstretch himself financially, by ensuring that his plans fit his budget.

“I set aside about S$700 to pay for all three plans, and I also set aside some cash savings each month. One of my priorities in balancing my financial needs is maintaining my liquidity. I try to make sure I have enough to meet my daily needs and savings after paying for my plans.”

The other part of the equation involves managing his expenses, and knowing he has to set aside money for his plans stops him from making frivolous purchases.

An avid cook who enjoys Chinese and Asian cuisine, Mr Kwek used to buy lots of kitchen equipment, but he now uses what’s available at home.

“I used to eat out with friends quite often too, but I’m spending less on that now,” he added.

LOOKING AT THE LONGER TERM

Mr Kwek is aware of the importance of taking a longer-term view of his financial needs.

“A retirement plan earns better returns and will help me live a better life in the future. Recently, I also opened a CPF investment account to buy unit trusts. I use a mixture of cash and CPF monies. I placed a downpayment and contribute S$100 each month to my investment.”

While marriage and family aren’t on the radar just yet, he’s still got an eye on the future. “I was awarded a bursary to cover some expenses but paid the rest of my university education myself. I’d prefer it if my own children didn’t have to do that.”

Mr Kwek realises that his health and financial needs will evolve and need to be reviewed regularly to address potential gaps in coverage.

“My current plans only cover hospitalisation. If I were to develop a condition that requires long-term care outside a hospital, these plans may not be able to cover all my needs.

“I don’t intend to get any additional plans at the moment. I will review my needs in the future when I have extra disposable income.”

This is the 13th story in a 15-part collaboration between TODAY and POSB. To read this story online, visit www.todayonline.com/posb.

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