Many affluent Singaporeans plan for retirement and distribution of their wealth to the next generations, but often neglect to think of the long-term care they may need when they grow older.
They often come to this conclusion, with facts based on their parent’s retirement instead of their own. This no longer works because Singaporeans nowadays have LONGER LIFE EXPECTANCY compared to the past generation. More and more retirees continue to live beyond their mid-seventies, often into their late eighties and nineties.
Another problem faced by Singaporeans is the RISING COST OF HEALTHCARE (health insurance, prescription drugs, and the need for long-term or chronic care) often force them to use large portions of their savings.
Many Singaporeans don’t want to think about long-term care insurance, nor do they want to plan for it. They assume that if they don’t think about it and do not plan for it, it won’t happen. Unfortunately, by not planning, they are actually choosing to SELF-FUND their care, which isn’t wise considering that the cost of self funding might exceed the premiums paid into a long-term care policy.
If you are a Singapore Citizen or PR in your forties or fifties, you should begin planning for your long-term care no later than when you begin planning for your retirement or the distribution of your estate.
Remember, insurance requires insurability. You MUST BE HEALTHY when you buy it, and insurance companies are increasing their underwriting requirements. It is a great idea to purchase long-term insurance by age 50 or even earlier, depending on your profession and family medical history.
If you haven’t started planning for long-term care, stop delaying. Seek a qualified financial adviser today to help you CREATE A PLAN where:
- You won’t OUTLIVE YOUR INCOME
- You won’t risk becoming a FINANCIAL BURDEN to your children
- You will be able to LEAVE A LEGACY to your next generation
