Health365.sg held its public webinar LET’S TALK on “Understanding The Cost Of Cancer Drug Treatments And How To Manage The Financial Impact Of Cancer” on 30 Sep 22. During the webinar, Ms Pamela Chong, Associate Manager with TN Advisory Group, spoke on how we can financially plan to guard against the cost of cancer treatment in Singapore, and other potential financial impact of cancer.
How Your Lifestage Can Affect Your Financial Planning Priorities
While retaining the overall objective of ensuring adequate insurance coverage for the cost of cancer treatment in Singapore, there should still be variations in planning priorities as we progress through difference stages of life. Ms Chong breaks it down for us below:
Single, Young @ Heart, Below Age 35
At this stage in life, a person’s main concern is loss of income. Financial planning priorities can thus be on:
- Hospitalisation Plan – People should at least get a hospitalisation plan providing coverage up to their preferred choice of healthcare.
- Limited Whole Life Insurance / Term Insurance – Getting life insurance is a form of privilege, and it is only when we are in good health that we can get it. People should thus get such insurance when they are young (cheaper) and in good health. Early stage and severe Critical Illness coverage is also advisable.
- Multiple Pay Critical Illness Insurance – This is ideal to have especially for people with a family medical history.
- Investment Planning – With a much longer time frame before reaching retirement age, people in this age group are able to have a longer investment horizon to accumulate wealth and thus able to undertake investment portfolios with higher risk profiles.
Sandwich Generation, Age 35 – 55
People in this age group have concerns such as providing for growing kids and aging parents. They also have financial obligations such as housing mortgage and car loans. In terms of investment risk profile, people start to get more conservative from age 45 onwards.
People in this age group can consider:
- Term Insurance – For a small cost, it can allow one to be insured with a big sum assured.
- Insuring against debts (mortgage specific)
- Safeguard children’s future
- Insuring against loss of income
- Long Term Care Planning – E.g. as a contingency against being bed bound. Long Term Care can ease the cost of engaging a domestic helper or home-visiting medical staff.
- Retirement Planning – Parents with children transiting to Primary School can start to reposition some funding from childcare fees to retirement planning.
Active Retirement, Age 56 – 75
People in this stage of life will want to start taking less stress in life. They would want to be instead doing things that they like and enjoy and aging actively. Their debts should be almost or fully redeemed by this stage. The only concern would be their ability to continue paying the premiums for their IP plans and the continuation of their Critical Illness plans.
People in this stage should have Long Term Care Planning, and should also start exploring Legacy Planning.
Family Quality Time (> Age 75)
People at this stage of life would typically focus on building transferrable wealth. Preservation and transfer of wealth are the top priority to ensure that the next generation are gifted with what you have set up for them.
For many in this age group, Multiple Pay Critical Illness plans or standalone Critical Illness Plans would have been planned to expire at age 75. This is because many in this age group would prefer to rely heavily on hospitalisation planning not spend additional expenses to get the illness treated.
Why Retirement Planning Is Important For Managing The Cost Of Cancer Treatment in Singapore
The risk of being diagnosed with cancer increases as we age. For instance, the average age of diagnosis for breast cancer in women or diagnosis for colorectal cancer in men (two of the most common cancers), is 50. However, there are many people who start to contemplate downgrading their hospitalisation plans once they start approaching age 55, or on the moment they retire.
While one reason for this is that they have decided that they would prefer to go back to public healthcare in case of critical illnesses such as cancer. Another reason might be that they have a gap in their financial planning, and found that they could not afford the premiums post-age 55. The premiums for IP plans with riders to cover age 65-85 can be about $200,000. The CPF Full Retirement Sum of $198,800 for those who turn 55 in 2023 is thus only barely able to cover this amount. For those who would like to continue to be covered for private healthcare, retirement planning to ensure continued ability to afford insurance premiums is thus a must.
Contingency Against The Cost of Cancer Treatment – TN Advisory Group Can Assist With Your Financial Planning
You can consider consulting an experienced financial advisor to ensure that you are well protected against the cost of cancer treatment and other potential financial impacts from cancer. Arrange for an appointment with TN Advisory Group using their contact form here. Quote the promo code “TN365” and receive a meet up gift (Yuan Skincare and Soap set, while stocks lasts) and a complimentary portfolio evaluation of 20 mins (no product purchase required).
TN Advisory Group is a group of representatives from Legacy FA Pte Ltd. At TN Advisory Group, they believe that financial planning is an intricate process that requires a sincere listening ear, an empathetic heart, and a relentless commitment towards improving the financial wellness of the lives they touch. Their team of experienced financial consultants will help to ensure your portfolio remains relevant in our ever-changing world, and that every purchase fits in the grand picture of your financial blueprint.
TN Advisory Group is the sponsor of the webinar LET’S TALK on “Understanding The Cost Of Cancer Drug Treatments And How To Manage The Financial Impact Of Cancer” on 30 Sep 22.
[Note: Views expressed by Ms Pamela Chong during the webinar does not necessarily reflect the views of Legacy FA Pte Ltd. They do not should not be construed as an offer or inducement to sell, or a solicitation of an offer to buy, sell or subscribe for any investment or life insurance product or the giving of advice in any jurisdiction. The presentation is meant for informational / educational purposes only.]
Overall Recap Of Webinar
Click below for the overall summary of the webinar. Dr Wong Siew Wei (Senior Consultant, Parkway Cancer Centre) explains the structure for cancer drug treatment in Singapore, and Ms Pamela Chong explains more broadly on how we can protect against the impact of the cost of cancer.
This article is informative only and is not intended to be a substitute for professional medical advice, diagnosis, or treatment, and should never be relied upon for specific medical advice.