1. Retirement Savings Plan
As soon as you begin your working life, you should have an MPF account. It’s one of the most tax-effective ways to save for your retirement. You can consider putting in more money than what’s required by the Government.
2. Life insurance
While savings help build wealth, you also need to think about protecting your financial future. That’s where life insurance comes in. If you’re married, have children, or own a business, you should have a life insurance policy in case anything happens to you. How much you need depends on your personal situation, but it should be enough to cover any debts you may have (including your mortgage) and help cover your family financially for as long as possible.
3. Critical illness and disability insurance
It’s important not only to have life insurance, but also to ensure you’ll be financially protected should you ever become unable to work due to illness or injury. Would your workplace benefits provide you with adequate coverage? If not, what would happen to you and your family?
Critical illness insurance helps pay the costs associated with a life-altering illness such as cancer or a stroke. You receive a lump-sum payment if you become critically ill and you decide how you wish to spend the money.
Disability insurance protects you from a potential loss of income due to injury or illness. You receive a recurring monthly payment to cover ongoing financial costs. Even if you have workplace group disability benefits, it’s often wise to have your own personal policy to provide you with additional coverage.