Insurance Archives | Page 7 of 9

5 Dont’s When Buying Health Insurance In Singapore

1. DO NOT PURCHASE INSURANCE POLICIES BASED ON ITS PREMIUM

As most companies employ monthly premium payments, premiums had become a fixed cost for consumers to consider. But if you solely focus on the price, you might miss out on the policy’s coverage.For example, you may buy the cheapest premium without checking if the insurance policy has disability benefits.

There are a number of exclusions, deductibles, and other factors that you should take note of. Do not purchase a policy just because it is the cheapest. Ask the financial professional to recommend you the best health insurance plan that fits your budget.

2. DO NOT CONCEAL FACTS THAT ARE RELATED TO YOUR HEALTH

Before anything else, you are required to tell your insurer about your medical history even if you had fully recovered from serious medical conditions. Never conceal anything related to your health as you might end up in a grave dispute in the future when making a claim. Be honest about your preexisting medical condition and other on-going health problems.

3. DO NOT DELAY POLICY RENEWAL

Allowing even a day or two to renew your health insurance policy can make your coverage ineffectual. What if an accident happened a day before you renewed? How can you make significant claims then? So do not delay policy renewal to prevent your policy coverage from being useless.

4. DO NOT ASSUME THAT IT IS UNNECESSARY

Health insurance policies are meant to safeguard you from the potential and unforeseen losses, accidents, and hardships. They are meant to curb your expenses at an affordable rate. It is best to purchase an insurance when you are “healthy” as premiums are cheaper when you do not have preexisting conditions.

5. DO NOT AVOID THE INSURANCE AGENTS

Health insurance agents are meant to answer all your questions while understanding your personal situation. Your lifestyle patterns, genetic health predispositions, and budget are unique. And since one policy does not fit everybody, health insurance agents guide you to the policy that is most suitable to your needs.

Image Credits: pixabay.com (CC0 Public Domain)

Do not hesitate on meeting health insurance agents as they can help you get the bigger picture.

Sources: 1 & 2

Honestly, Why Are You Buying Insurance?

Insurance is a safeguard against unfortunate and unforeseen events. It is a strategic way to manage various risks. Insurance companies offer individuals or policyholders protection from potential losses in exchange of payments called premiums.

Aside from guaranteed coverage, what are the honest reasons why people buy insurance? On the flip side, what are the insurance company’s objectives as they offer their services?

OBJECTIVES OF INDIVIDUALS

As you age and progress along the stages of life, you become more and more aware of how necessary insurance is. A number of factors may lead to this realization such as seeing your elderly parents and starting your own family. While you know that you are supported by your CPF account as well as your Medishield Life, you can realize that it may not be comprehensive enough to meet your lifetime needs. This can serve as your wake up call to evaluate your present financial situation and plan for your future and that of your loved ones.

The exact reasons why people buy insurance is unique and highly subjective. However, here are some of them:

a. Worried about critical illness – consider health insurance.
b. Worried about permanent disability – consider life or term insurance.
c. Concerns about the loss of belongings – consider general insurance.
d. Concerns about death (as a breadwinner)- consider life or term insurance.

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OBJECTIVES OF INSURANCE COMPANIES

Nowadays, insurance companies offer a wide array of insurance products and policies that cover areas from property, health, and travel. Insurance companies must satisfy certain objectives to effectively function and meet their clients needs. Before purchasing one, know some of their objectives:

a. Pooling Money

By collecting premiums from a number of individuals or businesses, the insurance companies are able to pool their money together. They then pay out for the relatively few claims filed each annum. Keep in mind that majority of the policyholders do not file claims over the same period.

b. Financial Competence

Another objective is to ensure the policyholders that they are financially stable. Once one or more policyholders report that they were not duly compensated, society’s confidence in the system may be gone.

c. Influencing Behavior

One of the most important aims of insurance companies is to reward and promote responsible behavior. For instance, individuals with lower records of vehicular mishaps are more likely to be quoted with a lower car insurance premium than those with unsafe driving records. Rewarding safe driving practices can increase the likelihood of such desirable behavior.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Newbie’s Guide To Buying Insurance In Singapore

Insurance is a binding contract or policy in which an individual receives reimbursement or financial protection against losses. It provides coverage or security against a myriad of unwanted or unforeseen events such as death of the spouse, permanent disability, critical illness, and damaged car.

First, you must determine the situation you are in then and decide what type of insurance is appropriate for you. The policies and the insurance jargons can be confusing to a novice. To help you, here are some things you should consider before purchasing an insurance policy in Singapore:

1. PRICES

When purchasing for an insurance policy in Singapore, look for the best-priced deal that is suitable for you because prices can vary from one company to the next. Furthermore, the policies these companies offer are different. So, beyond the price, it is important to consider other factors as well.

2. TYPES

There are three main types of insurance sold in Singapore namely: Life Insurance, Health Insurance, and General Insurance. It is important to make sure you know what you want and you know what the insurance policies entails.

a. Life Insurance

This policy protects you and your dependants by giving the sum assured under certain circumstances such as being permanently disabled or critically ill. The agreed amount of money is intended to help you and your dependants meet your financial needs.

b. Health Insurance

This policy covers accidents, illnesses, and disabilities that affects your health. To help you and your family deal with the expenses, different health insurance policies are available in the market.

c. General Insurance

This policy secures you against a wide range of events such as damage to your home or loss of your belongings. Upon the occurrence of the event, the insurance company will pay you with an agreed amount to cover a portion or all of your loss.

3. TERMS

As a newbie, you are exposed to different insurance terms that can sometimes be confusing. This is why you must read through a comprehensive glossary of terms such as this list compiled by A.M. Best Company. This is the sample:

a. Annuity- a type of insurance policy that pays out fixed income payments at regular timings for one’s retirement.

b. Premium- price of protection for a specified period of time or a specified risk.

c. Whole Life Insurance- a type of life insurance serves a lifetime of protection. The policy will pay out the total sum insured plus any additional that you have accumulated before you passed away or become permanently disabled.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Essential Insurance You Need As A Young Working Adult

Finally! After grueling years of hard work and burning the midnight oil, you have graduated. You are bound to face the next chapter of your life – transitioning to the workforce.

Aside from dressing professionally, meeting the deadlines, helping your boss, and socializing with your fellow colleagues, it is your responsibility to create an effective financial plan.

Financial planning is a process of managing your finances and knowing where you want to go. It protects you from all the potential pressures such as taxes and unexpected fees. And, an effective financial plan shall include a savings account and an insurance.

What if an unforeseen event happened to you in your first few months on the job and you have to be confined at the hospital for a week? Restoring your health to its full strength is overwhelming enough and the last thing you want to think of is whether you can afford the medical bills! Medisave and Medishield may alleviate the impact however, having an insurance policy would have been a better option to offset the charges.

This is why it is important to protect your future with a reliable insurance policy!

In fact, a study showed that the average amount of life insurance coverage a working adult needs (minus his personal and Central Provident Fund savings) is approximately equivalent to 3.7 times his annual income.

The good news is…there is an insurance company who have young working adults at heart. It is no other than DIYInsurance. DIYInsurance, Singapore’s first online insurance comparison web portal, insures young working adults with S$1,000,000 in protection and 75% of the starting job’s salary should you be unfit to work.

HOW DOES IT WORK?

DIYInsurance compared and analyzed policies across several insurers such as NTUC, Aviva, AXA, and Tokio Marine, to put together a package that is tailored to provide you with a comprehensive coverage. This package is called the “Young Working Adult Package”.

The Young Working Adult Package consists of:

S$1,000,000 assured in death and total permanent disability protection.

S$150,000 assured in critical illness.

S$50,000 assured in early critical illness.

75% of your income assured in occupational disability.

Here is an illustration:

This potent package that can easily be purchased in one go, will cover you during your working years till you turn 65!

What’s more? You can customize the plan according to your budget and needs!

In one amazing package, you get to protect your income stream, cover your hospital bills, have enough money for alternative cancer or stroke treatments, and provide your dependents with a substantial amount of money should you pass away!

So, what is the total cost of it all? An estimated amount of only S$220 per month (for a 25 year old non-smoker who is working on a desk job). If you must know, this starter pack will also reimburse you about S$350 in commissions.

This price makes DIYInsurance’s Young Working Adult Package ideal for working adults who want their essentials protected yet keep their expenses to a minimum.

Enquire or apply now at http://www.diyinsurance.com.sg/portal/packages/young-working-adult.

With a perfectly tailored insurance package that includes fuss-free processing and reliable after-sales service, what more can a working adult ask for?

*Aside from the package above, DIYInsurance launched the Price Beater option that guarantees to offer you with the best insurance deals out there! Simply email them the quote and benefit illustration you have been offered at [email protected]. Aside from offering you with a better price, they will give you up to S$50 in shopping vouchers (until 31 Dec 2015 only) !

(This article is brought to you by DIYInsurance.)

DIYInsurance’s First-of-its-Kind Baby Protection Package and Price Beater

DIYInsurance (Do It Your way Insurance) is Singapore’s First Life Insurance Comparison Web Portal launched in June 2014.

As its name suggests, you can now purchase insurance based on your own agenda and not the insurance agent’s agenda. Besides having the option to compare different kind of insurance plans across various insurers, they also rebate 30% of the commissions back to you. That’s an added bonus for making conscientious effort to take care of your own future financial needs!

Good news for every responsible adults out there!

DIYInsurance has unveiled a first-of-its-kind insurance packages last month to provide a more holistic cover to two groups of people that require protection the most — Baby and Young Working Adult.

For every parents, the birth of your baby signifies happiness and it also means assuming greater responsibility.

As parents, we want to give the best to our children. Besides giving them a memorable childhood, we want to give them a good education and adequate medical treatment if they fall ill or get injured.

The Child Protection Plan is an insurance package that protects your newborn from day one and it covers everything from child-related critical illnesses to death and disability. A complete hospitalization plan is also included to ensure that their hospital bill are taken care of.

Premium can be as affordable as less than $100 a month, depending on your needs. For more info, visit DIYInsurance here.

As responsible parents, we want our children’s education to be well taken care of and if your budget permits, the Baby Package also offers an Education Savings Plan that provides cash payout each time when your child reaches the next education milestone. Imagine how grateful your child will feel when they receive a cash payout of $2,000 each time they progress from Primary School to Secondary, and then to College?

An additional lump sum payment will be paid out when they turn 18, 19 and 20 (If your child is a girl) or 20, 21 and 22. (If your child is a boy)

Get rewarded for being responsible. You are entitled to cash rebates of around $300 for signing up for the Baby Package. A $50 shopping voucher will also be thrown in if you sign up for both the Child Protection Plan and the Education Savings Plan.

Enquire more about the package on DIYInsurace’s website here.

* Nobody like being shortchanged, and they understand that. DIYInsurance has also launched the Price Beater option which guarantee to offer you the best insurance deals out there. Got a better quotes from other insurers? Contact them and they’ll beat the price you have been offered and in addition they will give you up to $50 in shopping vouchers to spend! [Until 31 Dec 2015]

More information on Price Beater here.

(This article is brought to you by DIYInsurance.)

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