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
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
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 last article in this series, we will talk about how your third pay cheque can help you grow your wealth through investing.
Apply for GREAT Term Guard today and get up to a $500 one-time cash reward
Alternatively, you can get us to contact you.
Do not have the app?
Download on Apple app store
Download on Google Play
Download on AppGallery
Scan to start application:
General Disclaimer
This advertisement has not been reviewed by the Monetary Authority of Singapore.
- Any opinions or views of third parties expressed in this document are those of the third parties identified, and do not represent views of Oversea-Chinese Banking Corporation Limited (“OCBC Bank”, “us”, “we” or “our”).
- This information is intended for general circulation and / or discussion purposes only. It does not consider the specific investment objectives, financial situation or needs of any particular person.
- Before you make an investment, please seek advice from your Relationship Manager regarding the suitability of any investment product taking into account your specific investment objectives, financial situation or particular needs.
- If you choose not to do so, you should consider if the investment product is suitable for you, and conduct your own assessments and due diligence on the investment product.
- We are not making an offer, solicit to buy or sell or subscribe for any security or financial instrument, enter into any transaction or participate in any trading or investment strategy with you through this document. Nothing in this document shall be deemed as an offer or solicitation to buy or sell or subscribe for any security or financial instrument or to enter into any transaction or to participate in any particular trading or investment strategy.
- No representation or warranty whatsoever in respect of any information provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice.
- OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein.
- Investments are subject to investment risks, including the possible loss of the principal amount invested. The information provided herein may contain projections or other forward-looking statements regarding future events or future performance of countries, assets, markets or companies. Actual events or results may differ materially. Past performance figures, predictions or projections are not necessarily indicative of future or likely performance.
- Any reference to a company, financial product or asset class is used for illustrative purposes and does not represent our recommendation in any way.
- The information in and contents of this document may not be reproduced or disseminated in whole or in part without the Bank’s written consent.
- OCBC Bank, its related companies, and their respective directors and/or employees (collectively “Related Persons”) may, or might have in the future, interests in the investment products or the issuers mentioned herein. Such interests include effecting transactions in such investment products, and providing broking, investment banking and other financial services to such issuers. OCBC Bank and its Related Persons may also be related to, and receive fees from, providers of such investment products.
- You must read the Offer Document/Indicative Term Sheet/Product Highlight Sheet before deciding whether or not to purchase the investment product, copies of which may be obtained from your relationship manager.
- Any hyperlink to any third party article, or other website or webpage (including any websites or webpages owned, operated and maintained by third parties) is for informational purposes only and for your convenience only and is not an endorsement or verification of any such article, website or webpage by OCBC Bank and should only be accessed at your own risk. OCBC Bank does not review the contents of any such articles, website or webpage, and shall not be liable to any person for the same.
Important notes for OCBC Great Term Guard
GREAT Term Guard is provided by The Great Eastern Life Assurance Company Limited, a wholly owned subsidiary of Great Eastern Holdings Limited and a member of the OCBC Group. This plan is not a bank deposit and OCBC Bank does not guarantee or have any obligations in connection with it.
This document does not take into account your particular investment and protection aims, financial situation or needs. You may want to seek advice from a financial adviser before committing to buy the product. If you choose not to seek advice from a financial adviser, you should consider whether the product is suitable for you.
As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid.
This document is for general information only. It is not a contract of insurance or an offer to buy an insurance product or service. It is also not meant to provide any insurance or financial advice. The specific terms and conditions of the plan are set out in the policy documents. If you are interested in the insurance policy, you should read the product summary and policy illustration (available from us) before deciding whether to buy this product.
We do not guarantee, represent or warrant that any of the information provided in this document is accurate and you should not rely on it as such. We do not undertake to update the information or to correct any inaccuracies.
All information may change without notice. We will not be liable for any loss or damage arising directly or indirectly in connection with or as a result of you acting on the information in this document.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Information presented as at 23 February 2022.
Policy Owners' Protection Scheme
This plan is protected under the Policy Owner's Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg)
Important notice for Insurance
The insurance plans are provided by The Great Eastern Life Assurance Company Limited, a wholly-owned subsidiary of Great Eastern Holdings Limited and a member of the OCBC Group and Transamerica Life Bermuda Ltd. The insurance plans are not bank deposits and OCBC Bank does not guarantee or have any obligations in connection with it.
You may want to seek advice from a financial adviser before committing to buy the product. If you choose to not seek advice from a financial adviser, you should consider if the product is suitable for you.
Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high cost and the surrender value payable may be less than the total premiums paid.
This document is for general information only. It is not a contract of insurance or an offer to buy an insurance product or service. It is also not meant to provide any insurance or financial advice. The specific terms and conditions of the plan are set out in the policy documents. If you are interested in the insurance policy, you should read the product summary and benefit illustration (available from us) before deciding whether to buy this product.
We do not guarantee, represent or warrant that any of the information provided in this document is accurate and you should not rely on it as such. We do not undertake to update the information or to correct any inaccuracies. All information may change without notice. We will not be liable for any loss or damage arising directly or indirectly in connection with or as a result of you acting on the information in this document. This document may be translated into the Chinese language. If there is any difference between the English and Chinese versions, the English version will prevail.
Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Retirement Sum Scheme are aggregated and separately insured up to S$75,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.