WHO: MR T.L. ONG, 34, A FINANCE MANAGER OF A CHEMICALS COMPANY
(married with two children, aged three-and-a-half, and one-and-a-half)

His wife, 36, stopped work when their older son was born. Mr Ong has high cholesterol. He does not smoke.

WHAT HE HAS:
Both Mr Ong and his wife have a Shield plan each - equivalent to MediShield Plus A. He bought a Shield plan for his son, but not yet for his daughter.

He has a linked plan that has an investment component, covers death, and total and permanent disability, and pays out $50,000 for critical illness. The same plan also provides a monthly payout of $1,200 if he becomes disabled.

The premium for this plan is about $2,400 a year.

His wife has an investment-linked plan that provides coverage for death and $50,000 for critical illness.

Recommendations:
HOSPITALISATION
Mr Ong should upgrade his family's plans to 'as-charged' Shield plans pegged to private hospitals with a rider to cover the deductible and co- payment portions, financial adviser Eddy Cheong said, to keep their options open. They can always downgrade later.

CRITICAL ILLNESS
Mr Ong's coverage is, below the recommended level of two to five years' annual income, MrCheong said.

He should raise the coverage by about $200,000.

The most cost-effective way is to buy a portion that will last almost as long as you live, and the rest to cover just your working years - when there is substantial loss of income if you fall ill.

Mr Ong's current $50,000 coverage offered by his linked plan is for life, but Mr Cheong said it would become too costly after retirement.

Mr Ong should keep it till then as part of shorter-term coverage, and top it up with a term plan that provides $100,000 till age 60.

He should also get a second plan to provide $100,000 up till 90 years old.

Term plans are much cheaper than lifetime plans.

For example, a term plan for just critical illness that offers cover of $100,000 for someone aged 32, up till age 60, costs only $360 each year.

Mr Ong's wife's coverage is adequate as she has no income to compensate for.

DISABILITY
The disability income provided for by Mr Ong's current plan is inadequate for the breadwinner, Mr Cheong said.

He should enhance the coverage to yield a monthly payout of $3,000. He can ask his agent to divert funds now used for investment towards disability insurance.