Cover all your bases with essential insurance policies in Singapore. We give you the lowdown...
Getting insurance is as important as managing your personal finances. In other words, it’s vital, especially if life deals you a bad hand (read: retrenchment, critical illness and death). To make things easier for you, we’ve put together an easy guide to the types of insurance policies available in Singapore. Depending on your lifestyle and needs, this will nudge you in the right direction to make a decision for yourself (and your family).
Must-have insurance policies in Singapore
1. Health insurance
As the saying goes, health is wealth. Protect yourself (and your bank account) with health insurance. While Singaporeans and PRs have Medisave and MediShield to rely on, these have withdrawal limits and may not fully cover your medical bill. So for an extra layer of defence, sign up for a health insurance policy that beefs up your MediSheild plan. It ensures better coverage with higher claim limits, including pre- and post-hospitalisation.
Recommended insurance: Prudential PRUShield. It provides annual coverage of up to $1,200,000, alongside pre- and post-hospitalisation coverage of up to 180 days and 365 days respectively.
2. Critical illness insurance
Critical illness insurance is completely different from health insurance but we can see why anyone might get confused. The latter offers support with hospital fees whereas the former pays out a fixed amount when you’re diagnosed with a life-threatening disease. There are a total of 37 illnesses that Life Insurance Association Singapore (LIA) recognises as critical. These include major cancer, heart attack and severe dementia.
Recommended insurance: FWD Big 3 Critical Illness Insurance. As its name suggests, this affordable policy (with monthly premiums starting from $18) covers cancer, heart attack and stroke, which make up 90% of all critical illness claims.
3. Personal accident insurance
Whether you’re a daredevil or a homebody, accidents can happen anywhere and anytime. That’s why it’s handy to have a personal accident insurance plan in your arsenal. There are various kinds, but most policies cover medical expenses like X-rays and CT scans incurred from the accident. Plus, the premium is reasonable, ranging from $80 to $160 annually.
Recommended insurance: AXA SmartPA Protect+ (Silver). The silver tier has a coverage of $150,000 for accidental death and permanent disablement. Also, an additional $75,000 payout when accidental death occurs overseas.
4. Life insurance
If you happen to be the sole breadwinner of the family, a life insurance policy is a must. There are two types to consider. Term life insurance safeguards your family and loved ones, making sure they’re protected financially when you slip the bucket or become terminally ill. The coverage typically lasts till a certain age, so if you outlive your policy, you won’t get any payout. On the other hand, whole life insurance covers you till you’re 99 or when you pass away. Plus, there’s a savings feature to it where you can trade your policy for a sum of money.
Recommended insurance: Aviva MyWholeLife Plan III. This comprehensive whole life insurance provides lifelong financial protection against death and terminal illness. Your base sum assured can be increased by up to 400%, depending on the needs of your family, and will accumulate guaranteed and non-guaranteed cash value.
5. Disability insurance
This cushions you with a steady source of monthly income if you’re unable to work in the event of a disability. Singaporeans and PRs are covered by CareShield Life, a government scheme that provides financial support with a monthly payout starting from $600. But let’s be real, that barely cuts it in our expensive city. So a disability insurance plan acts as a rider, providing a higher monthly payout to take care of all your needs.
Recommended insurance: NTUC Income Care Secure CareShield. Working in tandem with CareShield Life, this supplement plan provides up to $5,000 in monthly benefits.
So, which insurance policy are you getting?