Underinsured for insurance? Looking for investing options for midterm too.(3-5 years)
I have just started working in my current company since May. It has a group term life, group personal accident, hospitalisation insurance coverage for all full time employees that you can choose how much to cover from 12x to 48x of your monthly salary. With me being cheapskate and wanting to claim more on flexible benefits, I opted to downgrade from the default 24x monthly salary to 12x monthly salary coverage for term life insurance so that I can get an additional $200+ in flexible benefits that I can claim for items such as dental treatment, spectacles, medical checkup etc. I am thinking if I should continue like this for the next year and so on.
Currently I am paying $500++ in total yearly for a Great Eastern term life and hospitalisation insurance covering death, total and permanent disability, hospitalisation and surgical coverage. I am in the lookout for something that is much cheaper that I am currently paying right now as the term insurance has a coverage of $200k but I am thinking to downgrade to something cheaper like FWD insurance which has a term life policy of paying $13.70 for $100k coverage till 70. Funny thing is right I can afford to have a higher coverage with my current pay but I don’t want to increase my coverage and want to stick to what I am having now. Probably because my father used to tell me that insurance is a waste of money so that idea stuck with me till now ?
My current take home pay is ~$3700 after CPF deduction, after giving my parents $1000 allowance I would invest $2000 into a ETF that I am investing for long term. In addition I would also park $1000 into various 6 months and 1 year T-bills and fixed deposits so I am looking at something that can cover me for the next 3-5 years.