Insurance coverage you need in Singapore
Whether you are old or young, earn a fat package or have a low income – insurance is everyone’s necessity. You put a lot at stake by not spending on insurance. When all else fails and you are faced with a financial crisis, insurance acts as your saviour.
Unfortunately, many people either undermine the need of insurance or don’t have enough insurance coverage. The lack of knowledge and the dilemma of picking the right insurance coverage leave a huge number of Singaporeans under insured.
There is a wide array of insurance products on offer in the market that leads to confusion amongst consumers. Insurance companies come up with various products because different people have different needs. Understanding your needs, liabilities, and budgeting for contingencies will help you pick the right insurance policy. Additionally, a thorough knowledge of different types of insurance could provide clarity. While this is true, there are some insurance you need in Singapore and are a must.
1. Life Insurance
Imagine what would happen to your children and family if you die. The scenario could be tragic, especially if you are the only breadwinner for your family. No one likes to think about death, but it is a reality and comes without a warning. Life insurance is a vital form of financial protection for your family in times of an unfortunate event like death. This type of policy is especially important for those with dependents. With life insurance, you ensure that your children, parents, or spouse are taken care of financially.
Life insurance comes in two forms – Term and Whole Life. Term insurance offers fixed term coverage of up to 65 years, where you will be paid in an event of death or permanent illness. Whole life is a mix of protection and savings. Understanding them in detail and matching them to your financial needs will help you pick the best one.
2. Health Insurance
This is a must on everyone’s list of necessary insurance. Health problems are the ones that cause huge financial damages. Whether you have a minor dental issue or need to undergo a surgery, doctor and hospital charges can take a toll on your financial health. There are different covers available under health insurance that must be high on your list of coverage. They include –
Hospitalisation and Surgery
With MediShield being a compulsion, Singaporeans have a hospitalisation and surgery coverage. Whether or not to get an additional private medical insurance policy is the only confusion here. Despite being protected by the government’s plan, it is a smart move for Singaporeans to get additional private health insurance coverage. MediShield life provides limited coverage, i.e., your cover is restricted to B2 or C class wards and public hospitals. Having an Integrated Shield Plan and any other private health insurance plan would be beneficial as it provides a wider choice of hospitals and wards.
You may be healthy today, but there is no guarantee that you will not encounter any illness. And, when it is a chronic illness, it may cease your income or cause heavy financial damage. According to an article, Singapore ranks second on the list of the highest rate of diabetes in developed worlds. Chronic diseases like diabetes or cancer need continuous medical attention and thus finances. Critical illness policy pays you if you are diagnosed with any of the selected illnesses or surgical procedures. Having a critical illness cover helps pay costly bills and compensate for the lost income due to not being able to work. While critical illness is typically described as the one in an advanced stage, early critical illness plans are also available. Do note that this kind of cover can be costly.
How would you pay for necessities if you suffer an accident or illness? Disability income cover can save you during such unfortunate times. Disability income provides a monthly payout for policyholders not able to work for a period of time. Make sure to understand the policy thoroughly as the insurance company will have several terms and conditions surrounding the ‘unable to work’ criteria. While this does cover your lost income, you must have additional insurance or cash savings to help you pay your hospital bills or any other medical emergencies.
While your health and family are your topmost priority, the properties your own must be next on the list. General insurance, like home or auto, will help you cover for any property losses incurred. Property commercial or residential comes at a cost. Plus, luxuries like car also demand a good amount of your regular income. Events like theft, accident, or natural disaster, that causes substantial damage to your properties, demand a huge amount of money and can lead to a financial crisis. Having your home, business, and car covered, would save you from a financial downfall. Most home and business insurance policies cover damage of other valuables. Read up policies thoroughly and compare them with your needs and budget to pick the best one.
It is better to be safe than sorry. Having an insurance policy prevents or reduces the effect of catastrophic financial events on your daily life. Understanding these types of insurance you need in Singapore and budgeting for them will provide you and your family the needed financial protection.
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