Cover for critical illness

HI,

I am already sufficiently covered for life and term insurance. But in medical insurance wise, I am only covered with NTUC medishield plan B.

Do you think it is necessary to get a critical illness insurance? And for how long? I am 31 years old. What is the most affordable option?

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My reply:

Here is my frank advice. Many insurance advisers want you to buy a critical illness policy. It is really a whole life policy. The premium is high and the return is generally poor.

I prefer to put the savings in an large, well diversified, low cost fund, invested mainly in equities. It gives an attractive return. The accumulated savings may be more than the critical illness cover in 20 years time.

If you have a Medisheld plan, it should take care of the medical expenses, even for critical illness.

You can read more from my "Investment Tips, April 2007" which has just been posted in my blog.