How women can be financially supported and protected

Life is in a constant state of flux and evolution. Our priorities change over time, as do our financial needs.

When we were younger, saving up enough cash to enjoy a 2-week trip to Europe might have been a top priority. But as we get older, juggling financial responsibilities and providing for our families takes centre stage — all while setting aside money for our retirement.

Times change as well. Gone are the days when people believed women were under-engaged when it came to financial planning. Today, many women are stepping up to the financial plate, and some are exceptionally good at it.

The Business Times reported¹ that 7 in 10 women who invest by doing their own research and getting advice from professionals are able to meet or exceed their investment targets, There are also prominent women leaders in finance², paving the way for other females in what was a male-dominated sector.

It’s also all the more important for women to take charge of their finances, especially as they have a longer life expectancy³ than men. In addition to roles only womankind can take on, such as childbirth, there’s also career and the shared duties of raising a child, caring for elderly parents, taking care of the household... The list of responsibilities just keeps growing.

So, ladies, let’s take a look at what you might need at different stages of your life in order to take charge of your wealth and be prepared for the future ahead — whether it’s for yourself or your loved ones.

You’re just starting out in your career

As you enter the heady days of your early 20s, you’re trying to navigate your first foray into the working world while at the same time exploring what life has to offer and who you are as a person.

That’s a lot to grapple with, but on the bright side, you probably don’t have many, if any, financial commitments yet. You might not even have bought any insurance at this point. Your main financial priorities are likely to be focused on paying off your student loan as soon as possible, finding your way in your career and learning to live within your means.

At this stage in your life, you are just beginning to build the foundation for what will hopefully be a healthy financial future. One critical place to start would be to get some basic insurance plans to protect yourself and your loved ones. So, you’ll be looking at ensuring you are covered for any hefty medical expenses or unforeseen circumstances that may derail your life plan. Critical illness life insurance is one of such insurance plans to start off with. Great Eastern’s GREAT Critical Cover Series can be an affordable way to obtain critical illness protection. The GREAT Critical Cover: Complete provides protection against 53 Critical Illnesses (CIs) with 100% lump sum payout⁵ for early, intermediate and critical stages of critical illness. If you already have some CI coverage but wish to boost your protection against the most common CIs, GREAT Critical Cover: Top 3 CIs may work for you. This plan covers cancer, heart attack and stroke – the top 3 most claimed CI conditions⁴ – and offers a 100% lump sum payout⁵ regardless of stage diagnosed.

Both plans have the option to add-on an optional Protect Me Again rider which offers continued coverage even after your first CI claim⁶. The add-on rider provides much-needed assurance as critical illness may strike more than once in a lifetime. If you have budget constraints to do so now, you can add-on⁷ the rider during the policy term when your finances are more comfortable.

You’re looking towards marriage and starting a family

At some point in your life, you might meet someone you want to spend the rest of your life with. We’re not fans of rigid milestones, but statistically speaking this is likely to happen somewhere in your mid-20s to mid-30s.

For many women, this stage is also marked by an increase in financial commitments as marriage, the purchase of a home and starting a family become key priorities.

The good news is, at this point you might have some savings and investments and are likely to have gotten some insurance policies like hospitalisation and life insurance.

On the downside, this life stage can be quite stressful. As part of the sandwich generation, you could find yourself saddled with a mortgage while trying to support aged parents and young kids at the same time — kena kiap in between, you know? If you have not already built up a nest egg in the previous years, it’ll get harder to do so now due to mounting responsibilities.

The pressures aren’t just financial, either. Coping with fatigue and lack of sleep as you juggle your career and life goals while caring for a young family can be quite a rollercoaster ride.

So, it may be wise to start planning to grow your wealth as early as you can to take a bit of this burden off your shoulders in your later years. Though it can be really difficult when you’re juggling so many financial commitments, a mid to long term endowment plan like Great Eastern’s GREAT Wealth Multiplier 3 can help regular disciplined savings and build a solid wealth foundation. With this plan, you can receive returns of up to 8X or more⁸ of total premiums paid. It also offers protection against death, total and permanent disability and terminal illness, during the policy term. That’s a win-win for someone like your busy self who always has to manage multiple roles and daily living activities simultaneously.

In addition, when you become a wife and mother, you start to take a longer-term view of your life. Will you and your spouse be able to support yourselves financially — or even your kids and aged parents — if you become disabled in the future?

With a disability insurance policy like Great Eastern’s GREAT CareShield, you can boost your protection from the existing Government plan CareShield Life to receive monthly payouts If you are unable to perform just 1 out of the 6 Activities of Daily Living (ADLs) — washing, toileting, dressing, feeding, walking and transferring. There’s also additional cash benefit⁵ if you are unable to perform at least 2 ADLs to support your caregiver and young dependants during your recovery.
 

You’re preparing for a comfortable retirement

After racing through life’s milestones, you’ll gradually feel the financial commitments begin to lighten. This typically happens in your 40s and later. Your kids would have grown up, you’d have been working for over 2 decades.

It’s time to finally start daydreaming about what kind of lifestyle you wish to enjoy when you retire!

This is the point at which you’re going to start to take stock of the retirement nest egg you’ve built thus far. If it’s not as big as you might have hoped, you’ll be searching for new ways to grow your money and generate a retirement income.

For instance, there’s GREAT Retire Income from the same insurer, a participating endowment plan that offers a monthly cash payout as well as potential bonuses when you reach your selected retirement age. You can choose to pay premiums for 5, 10, 15 or 20 years; and receive payouts for 10 or 20 years from age 56, 61, 66 or 71.

The total retirement income you receive has the potential to be up to 5 times the total premiums9 you paid at policy maturity. At the same time, the plan also offers disability protection — you will receive additional monthly payouts if you are unable to perform two or more ADLs. This complements and supplements your GREAT CareShield plan well!
 

The “GREATness” of girl power

The modern-day woman has multiple roles to play and many challenges to overcome. One key challenge is how to best deploy her income while she hustles in order to enjoy the benefits of health protection, life protection and wealth accumulation she needs for the future — all while ensuring a happy and fulfilling life for herself and those around her.

This is where insurance, such as the range of plans offered by Great Eastern, can help by taking the load off your shoulders and making your money work for you.
 

Find out more about the insurance plans Great Eastern offers and get in touch with a Financial Representative to complete your insurance portfolio review.

This article was originally published on MoneySmart.

Source:

¹ https://www.businesstimes.com.sg/banking-finance/money-playbook/how-women-can-take-charge-of-their-financial-well-being

² https://www.channelnewsasia.com/access/singapore-bankers-empowering-female-leaders-955346

³ https://www.healthxchange.sg/hormones-thyroid/wellness/why-women-live-longer-men

⁴ https://smartwealth.sg/critical-illness-statistics-singapore/

Notes and disclaimers

⁵ Terms and conditions apply.

⁶ Coverage restores to 100% after 12 months from the date of diagnosis for the most recently diagnosed critical illness, for a subsequent claim of a different critical illness. Coverage restores to 100% after 24 months from the date of diagnosis of the immediately preceding applicable critical illness for recurrent critical illness. Please refer to the Product Summary for more details on the benefit terms and condition.

⁷ Subject to medical underwriting.

⁸ Based on the illustrated cash value at the end of policy year 60, premium payment term of 5 years and an illustrated investment rate of return (IIRR) of the participating fund at 4.25% p.a.. Based on an IIRR at 3.00% p.a., the multiplied returns are up to 4.4X or more. Potential returns are not guaranteed and are dependent on the premium payment term and policy year when the plan terminates. The actual benefits payable may vary according to the future performance of the participating fund.

⁹ Based on a 35 year old male with a 20-year premium term, selected retirement of age 71 and income period of 20 years on accumulation option, at an Illustrated Investment Rate of Return (IIRR) of the Participating Fund at 4.25% p.a.. At IIRR of 3% p.a., the total retirement income benefits received is up to 2.7X of total premiums paid at policy maturity.

All ages specified refer to age next birthday.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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.

The information presented is for general information only and does not have regard to the specific investment objectives, financial situation or particular needs of any particular person.

You may wish to seek advice from a financial adviser before buying product. If you choose not to seek advice from a financial adviser, you should consider whether the product is suitable for you.

Protected up to specified limits by SDIC.

Information correct as at 31 October 2022.