Most adults who reside in Singapore are definitely aware that work is an essential responsibility that everyone has to undertake. Regardless of whether one is working for some startup or you are running your individual business or maybe you are working for a multinational, most individuals normally work for a very crucial reason and that is basically providing for their families. As we do strive in order to provide the best to our loved ones, climbing through the corporate ladder so as to provide our families a comfortable way of life, there are some extra things that we should do in order to secure the family’s financial future past the common monthly salary.
Below are the four things which one should do now in order to secure the future of their family
#1 Make sure that you have enough savings for emergency purposes
While most of us growing up, we used to be reminded time and again on the need to save for a rainy day. The idea here is to acquire enough savings that we can rely on once an urgent need comes along, with no need of having to borrow from anyone or even borrow a loan from the bank or any other licensed money lender in Singapore.
Among the main things that one is supposed to do is accumulating at least 6 months of the family’s average expenses per monthly. In case your family spends around $3,000 per month, then you are required to acquire a minimum of $18,000 as savings.
In case you are much concerned that 6 months of expenditure is not enough, consider raising this to 9 months’ or maybe a year’s worth of savings. This is going to permit you to move back on a very large reserve in the unexpected event which you get yourself absent for work for a long period of time or an instance where you have to pay for some unplanned bills.
#2 Make sure that you have enough health insurance coverage
Healthcare expenses might be costly in Singapore, & an unexpected illness can be all it takes for the savings you had to be rapidly depleted. To take care and cope with such unexpected health bills, make sure that you & the members of your family are always protected with enough health insurance cover. Most Singaporeans are able to use their MediShield Life or MediSave but that might not be enough.
In the first place, you need to consider obtaining a private Integrated Shield Plan like the AIA Healthshield Gold Max. This is going to cover the cost of hospitalization & treatments, which is further going to provide you & your loved ones some peace of mind since your family is not going to be overwhelmed with a very hefty hospitalization bill.
Apart from the hospitalization bill, you might similarly have to incur extra expenses because of these health conditions. This might incorporate extra treatments out of the hospital, or where you are required to leave alone your job for a short period of time in order to recuperate. In circumstances like these, acquiring a protection plan for critical illness is going to be vital due to the fact that it provides you with the financial ways to do this.
#3 Make sure that you possess enough life insurance coverage
While the health insurance is capable of covering any medical related expenses that you might be having, it is similarly important to consider ensuring that one’s family’s long-term requirements are accounted for in case you are not around anymore. This is the instance when life insurance comes in and plays a very vital role.
You are supposed to do your calculations well to come up with a rough figure of the amount which your family is going to require when your financial support is no longer present. Some of the things that you require to consider are among factors such as the amount of loans that you have presently, the number of kids that you have, consider too whether or not your partner is employed & your present living expenses per month.
What most people fail to consider consider too is the extra cost that an existing spouse might incur in order to take care for their family. For instance, a domestic helper might be needed to help out with some household matters, or a case where the surviving spouse needs to take a sabbatical from their work. This incurs extra costs & requires proper consideration beforehand.
#4 Estate planning
The last but not least thing that you should consider is making sure that the assets which you leave behind or the insurance policies which you purchase are handed to the correct beneficiaries.
This may at times seem much complicated as compared to what anyone can expect, particularly in case one is providing for their children & parents too. For instance, without a will, every of your assets are going to be distributed automatically according to the Singapore’s Intestate Succession Act. This implies that your children & the surviving spouse is going to inherit all these assets, while the parents are going to be left without something, even if your intentions were to leave your parents a slice of the assets that can take care for them while in their old age.
It is vital for one to comprehend how their assets are going to be distributed in their absence, & to make sure that one has have a valid will in case you are not cautious about the default way in which the Intestate Succession Act is going to follow.
Secure the future of your family right now
Taking care of your family is an obligatory task; most Singaporeans must work in order to accomplish this. Ranging from an hourly basis of employment to a salaried job, one must find some means of making the ends meet. These are some actionable plans which you should ponder about & which you should take care of in order to secure the financial future of your family today. By doing this, you are going to have some peace of mind where you know that you have already secured the future of your family.