Now reading:

Part 2 of 3: Achieve financial wellness with your first three pay cheques

Part 2 of 3: Achieve financial wellness with your first three pay cheques

  • 21 June 2023
  • By OCBC Wealth Advisory
  • 10 mins read

In this three part series, learn more on how you can achieve financial wellness with your first three pay cheques as a first jobber.

Previously, we talked about setting aside an emergency fund with your first pay cheque. Today, let’s talk about how we can use our second pay cheque to prepare for curveballs that life may throw at us.

As we all know, life is unpredictable. Unexpected events can cause a significant blow to your retirement plans, for instance. You were planning to work into your 70s maybe, but a work injury caused you to be bedridden instead. Not only have you lost your source of income, you also did not get a chance to build your nest egg like you had planned. In addition, there are now massive hospital bills to incur.

It is true when we say we are unable to foresee the future, but one thing we can do is to prepare ourselves for such events.

Think about safeguarding yourself and insuring your loved ones from unforeseen financial obligations. There are many different types of insurance plans out there, but your budget is limited. Getting the right cover is important. How should you prioritise?

Second pay cheque: Manage your risks

Before diving into just any insurance policies, it is essential to review any existing policies, and identify the gaps in coverage that may exist.

If you are a Singaporean or Permanent Resident, you are already covered under the MediShield Life, with basic hospitalisation and surgery coverage. For additional coverage, consider upgrading your MediShield Life plan to Integrated Shield Plans offered by private health insurers which can be funded using MediSave. Depending on the plan you select, you can get coverage for higher ward classes, claims and more.

As a first jobber, however, your priority may be different. While death coverage may not be at the top of your list, you may want to allocate more to Critical Illness (CI). Just think about it, if any unfortunate events were to happen, you want to get treated promptly. Being able to take time off work to focus on making a full recovery can make a difference. And this is where CI coverage can give you this option.

Depending on your plan, CI coverage may include:

  • Income replacement
  • Any remaining out-of-pocket costs
  • Payouts for trial of experimental drugs

A good pick would be the OCBC Great Term Guard (Figure 1), a term insurance plan that provides coverage against death, terminal illness, total and permanent disability (TPD) as well as late-stage CI.

The protection covered under the OCBC Great Term Guard includes:

  • Critical Illness (includes 53 CI)
  • Death or Terminal Illness
  • Total Permanent Disability

Figure 1: OCBC Great Term Guard offers extensive protection with varied coverage to best meet one’s needs

Figure 1: OCBC Great Term Guard offers extensive protection with varied coverage to best meet one’s needs

Source: OCBC Wealth Management

Do not think of insurance as a “waste of money”. The OCBC Great Term Guard distinguishes itself from the other comparable policies on the market by offering a complete refund of premiums if no claims are made at the age of 65. Prioritise what is important here, which is your health. Start protecting yourself today.

In the , we will talk about how your third pay cheque can help you grow your wealth through investing.

RECOGNISED AS BEST LIFE INSURANCE PRODUCT 2023 BY THE ASIAN BANKER

Apply for GREAT Term Guard today and get up to a $500 one-time cash reward

Scan to start application: