5 Money-Savvy Things To Do With Your Pay Raise Or Bonus This Year

Consider putting your extra cash this year to good use with these smart money tips

2. Enhance your insurance coverage

 

5 Smart Things To Do With Your Pay Raise Or Bonus This Year 2

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Insurance policies provide protection and can also act as savings plans. If you don’t like to invest yourself, you may want to consider enhancing your insurance.

Even a S$100 increase to premiums can result in significantly better coverage. You may be able to upgrade to a policy that covers hospital stays in a better ward, for example. You may also be able to add riders that cover you in the event of accidents, or include riders that mitigate the need to buy travel insurance in future (e.g. a rider that makes your insurance apply even in places you travel to).

If your insurance plan has a savings component (it grows your money), raising the premiums can mean a much bigger payout for an endowment policy. The exact amount will vary based on your plan, but it’s worth speaking to your financial planner about. Investing an extra S$100 or more can be enough to cover your children’s tuition fees, or provide for a more comfortable retirement.

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