We attended CIMB InsureXpo. Here’s what we learnt

What happened?

How do we start with planning for our insurance needs?

This was a question we wanted to get answers to when we attended the CIMB InsureXpo event at the Marina Bay Sands Expo & Convention Centre earlier this month. 

This inaugural insurance event organised by CIMB Bank featured a panel of eminent and notable speakers along with approximately 500 participants to discuss an important topic: insurance.

It was organised in partnership with five major insurers—AIA, Income Insurance, Manulife, Singlife, and Tokio Marine.

At the event, we were treated to discussions on the importance of insurance in our financial journey as it helps to provide protection against the unexpected.

For those who missed it, here are some of our key takeaways from the event.

#1 – Having a holistic insurance and financial plan

If we had to sum up the first important takeaway in three words, it would be: holistic financial planning.

The panelists discussed their views on hedging against inflation and overseas insurance coverage, encouraging attendees to take steps in securing their financial well-being.

During the panel discussion, the speakers also referenced the Basic Financial Planning Guide by the Monetary Authority of Singapore (MAS) and MoneySense, in collaboration with CPF Board and finance industry associations

The Guide provides practical guidelines for improving savings, insurance coverage, and investment strategies:

• Save at least 3 to 6 months’ of expenses for emergency needs
• Spend at most 15% of your income on insurance protection, including obtaining insurance protection of
  • 9 times annual income for death and total and permanent disability
  • 4 times annual income for critical illness
• Invest at least 10% of income for retirement and other financial goals 
• Plan your will and CPF nomination

It covers a few rules of thumb that people should adopt when dealing with the following key aspects of their financial planning: emergency funds, insurance protection, investment, and legacy planning.

Mr Chan Mun Hoe, Head of Alternative Distribution, Bancassurance of Manulife Singapore, shared with participants on how they could build their wealth for the future.

The approach could be summed up in the three points below.

First, you should take into consideration not just yourself, but also your dependents, when drawing your financial plan. 

Second, you need to have a level of financial security for unforeseen events.

Third, emergency funds should be balanced against the financial commitment for young families.

#2 – Importance of critical illness protection 

The importance of having adequate critical illness protection coverage was another important point raised during the discussions.

On that front, Ms Natalie Lau shared with participants on how being “under-insured” may threaten your financial security.

As the Head of Advocacy & Communications at the Breast Cancer Foundation, Natalie advocates for early detection of breast cancer and supports the breast cancer community.

More importantly, Natalie highlighted the importance of being adequately insured for unforeseen circumstances that may arise. 

For example, having critical illness protection plays a vital role in safeguarding us against unexpected diseases and illnesses that could undermine our financial goals.

This is important since critical illnesses may require long-term treatments which come with high medical costs, on top of preventing you from working and earning an income.

Of course, when you are young and healthy, the thought of critical illness seems unlikely.

But closing the critical illness protection gap for yourself now is paramount as the policies will only cost more if you get them at an older age.

#3 – Getting independent and objective advice from a third party 

Another point that was brought out in the questions posed to the panelists was how one can get started given the vast amount of information and many different insurers to choose from.

Several guest speakers shared that individuals could seek out independent and objective advice from a third party.

This could give them the appropriate and relevant solutions in helping them reach their financial planning needs.

Other members of the audience also posed questions on what they should do before purchasing insurance.

Before you decide on which insurance policy to choose, you need to do your homework and find out how much insurance coverage you need.

Once you have done a holistic assessment of your current financial situation and objectives, you can then use the compareFIRST information portal to compare between different insurance products.

What would Beansprout do?

At Beansprout, we’re constantly looking for ways to share valuable insights to help our readers gain financial success.  

The CIMB InsureXpo provided a timely reminder on the need to have a holistic insurance and financial plan.

Here’s the guideline we would be using to build a strong foundation for our financial planning:

• Save at least 3 to 6 months’ of expenses for emergency needs
• Spend at most 15% of your income on insurance protection, including obtaining insurance protection of
  • 9 times annual income for death and total and permanent disability
  • 4 times annual income for critical illness
• Invest at least 10% of income for retirement and other financial goals 
• Plan your will and CPF nomination

If you are keen to learn more about how you can shield yourself against the unexpected, you can RSVP for the next InsureXpo and be contacted for the next event.