A recent survey conducted by Zurich-based reinsurrance company Swiss Re revealed that the demand for insurance in Singapore has gone up during the COVID-19 pandemic. The results show that 31 per cent of Singaporeans searched for new insurance policies and 16 per cent bought a new plan. On the other hand, 27 per cent of the people contacted by insurers have expressed the intention to purchase a new policy.
Although the rise of interest in insurance was heavily influenced by the coronavirus outbreak, this does not mean that having a financial safety net is only essential during a crisis. On the contrary, the COVID-19 pandemic only proved what reputable financial advisors have been saying all along: insurance is acrucial part of any sound financial plan.
Insurance is an integral part of financial planning, as it protects you and your family from the financial burden associated with unfortunate events and expenses such as disability, illness, and death. Signing up for an insurance plan is one of the smartest decisions you can make, especially if you are still young and healthy.
3 Main Types of Insurance Policies
There are numerous types of insurance policies in Singapore. It’s likely that anything you can spend serious money on can be insured. To find out the best insurance policy for your specific needs, you must first acquaint yourself with the most common options available to you. These are the main types of insurance plans in the Lion City.
▪ Life insurance. This type of policy assures financial support to your dependents in case you pass away unexpectedly or become permanently disabled. Some forms of life insurance also include a savings or investment component and offer regular income during retirement.
▪ Health insurance. This insurance type can be used to help pay for your medical and hospitalisation costs due to illness or accidents.
▪ General insurance. While the first 2 types of policies protect you and the people you love, general insurance protects the things you value the most, such as your home, cars, and other property.
Why Do You Need Life Insurance?
When you have a family, buying a life insurance plan seems sensible as it allows you to still take care of your loved ones even if you’re no longer around. It’s easy to fall into the trap of thinking that you don’t need such a plan when you’re young and single. However, adopting this mindset can cause your family to miss out on the benefits that a good insurance policy can bring in the future.
No one is really assured that they’ll stay healthy for the rest of their life or that they’ll reach old age. Young adults are not immune to cancer, for example. In fact, 20 per cent of colorectal cancer patients in the Singapore General Hospital are young adults, and of these cases, 60 per cent are already in the advanced stages. There are also news reports that highlight how doctors are noticing a rising trend in skin cancer cases among young Singaporeans.
The best time to sign up for an insurance policy is while you’re young and healthy. This way, no matter what happens in the future, you and your loved ones can expect to get the right assistance in your moment of need.
There remains the question of how you can end up with an insurance policy that suits your specific circumstances. You can begin your search by checking out compareFIRST SG and using the site to evaluate the options that are available to you. As the name suggests, the compareFIRST website allows you to compare insurance products from various providers in Singapore, thereby making it easier for you to select the best match for your needs and goals.
Why Should You Boost Your Basic Health Insurance Coverage?
Though Singaporeans and Permanent Residents can expect MediShield Life to cover a portion of their healthcare and hospitalisation costs, the basic health insurance system still has its limitations. There’s a chance that patients will still have to spend their own money on medical services. MediShield Life, for example, can cover most of your hospitalisation costs if you opt to get treatment in a class C or B2 ward in a public medical facility, but this plan will not be enough if you get diagnosed with a more severe illness down the road.
The good news is that there are insurance products in Singapore that are designed to complement the services already covered by MediShield. These Integrated Shield Plans (IP) are provided by private insurers and offer the following benefits:
▪ Higher annual claim limits. The claim limit of MediShield Life per year is set at SGD 100,000, while IPs offer as much as SGD 1 million annually. With an IP, you are less likely to run out of funds even if you’re faced with a chronic or critical illness or injury.
▪ Better hospital ward classes. If you have an IP, you can choose to stay in a private hospital or higher class wards in a public hospital, where you can expect better care and facilities. Take note that in Singapore, many class C and B2 hospital wards don’t even offer air conditioning.
▪ Pre and post hospitalisation claims. MediShield Life does not cover before and after hospitalisation expenses, such as diagnosis, early treatments, and recovery. On the other hand, an IP can shoulder this cost so you do not have to drain your savings.
How Does General Insurance Benefit You?
General insurance protects you from financial losses by providing coverage for the things you care about the most. When you buy this type of insurance policy, your insurer will pay the agreed amount if something unfortunate happens to your precious belongings, such as your home and vehicle.
Perhaps the ultimate benefit of general insurance is it offers peace of mind. You can sleep soundly at night knowing that you do not have to face massive financial loss in case of a residential fire, motor accident, or similar emergencies. For instance, having a comprehensive travel insurance plan when you fly overseas ensures that you’re protected against possible losses that may arise before, during, or after your trip. If you have this assurance, you have a better chance of enjoying your vacation to the fullest.
Life, health, and general insurance policies are essential expenses, but to benefit from them, you need to sign up for a good insurance policy ahead of time. Learn about your insurance options and compare the policies offered to you so that you can purchase the plans that are best matched to your needs.