Your Insurance Needs


What insurance do you need?

If you are worried about... 

You may want to consider this type of insurance...

How it helps...

Life insurance

Death of breadwinner

Life

Provides some money for your family if you die.

Total & permanent disability

Life

Provides some money for your family if you suffer from total or permanent disability.

Death of mortgagor/main borrower of home loan

Mortgage term reducing insurance (form of life insurance)

Pays off mortgage if mortgagor dies.

Health insurance

Trauma/ Critical illness

Critical illness

Pays a portion or lump sum on first diagnosis of serious illness.

Medical bills for major illness or accident

Medical expense, e.g.: MediShield Life (compulsory for all Singapore Citizens and PRs), 
Integrated Shield Plans,
Other hospital and medical plans & riders

The main medical expense insurance plans pay a portion of hospital and surgical costs if you are ill or suffering from injuries due to an accident.

Complementary plans such as riders cover the co-payment portions (e.g.: deductible and co-insurance) that are not covered under the main plans.

Long-term care for disability

Long-term care, eg: ElderShield, ElderShield supplements

Pays a fixed monthly amount for long-term treatment upon the insured’s inability to perform a number of “activities of daily living” like bathing, dressing, etc.

Loss of income because you are hospitalised

Hospitalisation cash plans

Provides income if you are hospitalised.

General insurance

Loss of or damage to your belongings

Home contents

Pays for repairs or replacement if you suffer loss or damage to your home or contents. 

If you are renting your home, it’s your responsibility to cover loss of or damage to the contents of your home.

Damage to car/theft

Car

Pays for repairs or replacement if your car is stolen or damaged.

Damage to your home

Fire /home

Pays for repairs or replacement if you suffer loss or damage to your home as a result of perils such as fire, flood, burglary

Loss of luggage/trip delays/cost of medical care while travelling

Travel

Pays for repairs or replacement if you suffer loss or damage to your belongings. Also pays for financial loss if there are delays or cancellations.

Pays for costs related to personal accident while overseas including medical and repatriation expenses.

Protecting your pet

Pet

Pays for vet's bills. Some will pay for you to advertise if your pet has been lost or even for kennel/cattery fees if the pet is suddenly admitted into hospital

Which insurance should you buy and how much?

Nowadays, it is possible to be insured against all sorts of risks. But, it may not be necessary to cover yourself against all risks.

To help you decide what insurance you need, make a list of the risks or events that concern you. Assess the likelihood of the event happening and the financial loss you or your dependants may suffer if so. Consider how you would cover the financial loss. Buying a watch to replace a lost one might be fairly easy, but large hospital bills could set back your retirement goals if you haven’t some savings or insurance to cover this. If you already have some insurance policies, check to see if these cover you for the risks you are concerned about.

If you have just started work or are managing your own financial affairs for the first time, you are likely to want some life insurance if you have a family or parents to support. How much life insurance coverage you buy might depend on how many dependants you have and how old they are. For example, if you have older children and your spouse is working, you may not need as much. Also, you should only commit to what you can afford. Buying life insurance is about getting what you need not about how much you are worth.

You should have some healthcare insurance too for peace of mind. It is important to know that if you are a Singapore Citizen or Permanent Resident, you are automatically covered under MediShield Life from 1 November 2015, even for your pre-existing conditions. MediShield Life is a basic healthcare insurance designed to pay for hospitalisation in Class B2/C wards in public hospitals.

 

Learn more about the different types of insurance available for your needs and how you can compare the premiums and features of different life insurance products.

 

The above information is prepared in collaboration with the Central Provident Fund Board, General Insurance Association of Singapore and Life Insurance Association of Singapore.