The Insurance Needs Pyramid shows the increasing level of insurance that everyone needs. The most important insurance is to adequately cover us in health, the basic one being the national hospitalization plan, the Medishield integrated plan offered by an insurer that covers the hospital bill in its entirety. This is important as we need to focus on recovering and continuing our normal lives rather than worrying about the financial burden.

Next in the pyramid is protection against death, total permanent disability and critical illness. This is rarer than hospitalization, but if it does happen, it will cause a lot of financial and emotional strain on the family. We would like our family members to continue with their lives as normally as possible. Therefore, a comprehensive coverage with sufficient payment will help our family members to get through the difficult period.

Once we have adequately covered ourselves, we will look for the opportunity to save and invest to ensure the continuity of a good life for our family members. Families with children should consider educational policy to guarantee and secure a fixed sum of money for children’s tertiary education for an adequate head start in life.

And when we reach age 55, we must purchase an annuity insurance policy that will pay us income, with an increasing amount each year, as long as we live. We should be enjoying our retirement years, not worrying about the lack of income to support our daily expenses.