From health insurance and personal accident insurance to critical illness and whole life insurance products, there are several different kinds of insurance policies available in Singapore.
Insurance acts as a buffer against the unexpected and offers peace of mind by providing financial support for medical expenses, death, or disability. Some policies also include investment components.
However, it’s essential to fully comprehend the policies and coverage before seeking a quote from a private insurer, as the insurance market can be complicated. Here’s what you need to know.
5 Types of Basic Personal Insurance in Singapore
The five most common kinds of insurance policies found in Singapore are health insurance, disability insurance, critical illness insurance, life insurance products and personal accident insurance. Let’s review what you can expect from each.
| Where to Apply | Insurance Coverage | Top Benefits | Typical Premium / Cost | Eligibility | |
| Health Insurance |
|
|
|
Dependent on your unique health and fitness situation | Individuals and families |
| Disability Insurance |
|
Replaces a percentage of your monthly income if you become unable to work |
|
Based on what percentage of disability income you require |
|
| Critical Illness Insurance |
|
Offers a lump sum pay out in the event of critical illnesses such as cancer or stroke |
|
Dependent on the size of lump sum payout you require | Individuals and families |
| Life Insurance Products |
|
Pays out a sum assured as either a death benefit or permanent disability payout | Insurance coverage usually extends to blindness, permanent disability and other conditions | Dependent on the sum assured you opt for, as well as the length of term you choose to cover yourself for | Individuals and families |
| Personal Accident Insurance |
|
Offers a lump sum payout in the event of an unexpected personal accident |
|
From SG$ 20 per month | Individuals and families |
1. Health Insurance
Basic health insurance pays out money to cover medical expenses incurred in the event of an injury. While all Singaporeans already have access to MediShield Life, a private insurer can offer you what’s known as an Integrated Shield plan or “IP” that will cover various important treatments and grant you cheaper access to private hospitals should you ever need them.
Premium
- It’s important to retrieve a quote directly from an insurer, as your health situation could influence premium costs.
Coverage/Benefits
- Bypass MediShield Life claims limits.
- Access a private hospital for less.
- Opt for sufficient coverage for any medical situation.
Where to Apply
Eligibility
- Individuals, families, foreigners living in Singapore.
How to Apply
- Get a quote online from a recommended provider.
2. Disability Insurance Protection
Disability income insurance protection will supplement your monthly income in the event of a disability that leaves you unable to work. You can choose how much insurance coverage you want, but it’s recommended to insure yourself for at least 70% of your income – especially if you do a lot of very physical work.
Premium
- This depends on the level of coverage you require – expect to pay between 1-3% of your annual salary.
Coverage/Benefits
- 70-75% of your income should ideally be covered.
- Get disability income if you’re unable to work.
- Reduces the risk of financial setbacks if disability occurs.
Where to Apply
Eligibility
- Families, individuals, and anyone at potential risk of disability.
How to Apply
- Get a quote online from a recommended provider.
3. Critical Illness Insurance
Critical illness coverage will grant you a lump sum pay out in the event of critical illnesses, either at the point of diagnosis or once your terminal illness has passed a certain stage. This enables you to quit your job and enjoy spending more time with your family during intensely difficult times.
Premium
- This depends on the level of coverage you decide on. It’s advised to secure a pay-out to cover 5-7 years of your regular income.
Coverage/Benefits
- Get the financial support you need to deal with a terminal illness.
- Select your own lump sum amount.
- Choose when and how you’ll receive your lump sum.
Where to Apply
Eligibility
- Individuals and families.
How to Apply
- Get a quote online from a recommended provider or insurance agent.
4. Life Insurance Coverage
Life insurance typically comes in two variations – you can choose between term life insurance or a whole life insurance plan. The former offers a sum assured in the event of your death or a serious disability if either occurs during a pre-agreed period, whereas the latter offers more comprehensive coverage for your whole life, with investment linked policies available that come with a cash value component.
Premium
- Term insurance is typically cheaper than a whole life insurance plan, but you’ll still need a personalized quote based on your circumstances.
Coverage/Benefits
- Receive a death benefit in the event of death or a serious disability.
- Opt for investment linked policy to leave a greater legacy for your family.
- Tailor your insurance plan to meet your needs.
Where to Apply
Eligibility
- Individuals and families.
How to Apply
- Get a quote online from a recommended provider or insurance agent.
5. Personal Accident Insurance
Personal accident plans protect you should an unfortunate accident occur, such as breaking your arm or leg unexpectedly while playing sports. You’ll get basic coverage for things like x-rays, accident-related medical expenses, and more.
Premium
- Most personal accident plans start from around SG$ 20 per month.
Coverage/Benefits
- Choose your own customized personal accident plan.
- Personal accident plans are cheaper than other insurance policies.
- Easy to find an insurance policy, as lots of providers are available.
Where to Apply
Eligibility
- Individuals and families
How to Apply
- Get a quote online from a recommended provider.
Choosing Personal Insurance Policies in Singapore
Now you know the basics about the five most common insurance policy types in Singapore, let’s review some important considerations before you start comparing the market.
The key thing to keep in mind is that, ultimately, purchasing an insurance policy in the city-state should always be a careful decision – it’s essential to find a policy that offers the coverage that you, personally, need and that will 100% meet your expectations and requirements.
1. Assessing Your Personal Insurance Needs
Whether you’re shopping for life insurance policies, fire insurance, maid insurance, travel insurance or any other kind of general insurance products, it’s important to think carefully about your unique needs before approaching insurance agents for quotes.
This will help you to better identify the policy that offers the best market value for you on a more personal basis.
2. Comparing Insurance Policies – Cash Value and Other Benefits
While market value is important, there are lots of other aspects of insurance products that you’ll want to compare, too.
Policies with broader coverage levels might attract higher premiums, which means shopping around is especially important if you’re opting for a high-end product, such as a whole life insurance plan over a much more basic term life insurance policy, for example.
3. Cost Considerations of Insurance Policies
On top of the monthly premium costs you’ll be expected to pay to keep your policy active, you’ll need to think about hidden costs, too.
For example, some car insurance products might require you to pay certain processing fees or an excess in the event of making a claim, while health insurance products generally have a co-pay requirement that obligates you to pay around 20% of the upfront cost of any surgery or medical charges as part of the claims process.
Read Also: Financial Planning Singapore
Frequently Asked Questions (FAQs) About General Insurance in Singapore
1. How Do I Get the Cheapest Possible Insurance?
Finding the cheapest insurance products is all about comparing the market. Once you know exactly what you’re looking for, you can use comparison sites with customizable filters to pit the best available products against each other.
You can also approach insurers directly and negotiate with them personally in an effort to secure a more competitive quote.
2. Do I Really Need Critical Illness Cover?
Critical illness insurance is often overlooked by Singaporeans, but the fact of the matter is, having good critical illness coverage can prove to be a lifeline should the unexpected happen.
Recent statistics indicate that the likes of cancer, stroke, and ischemic heart disease rank among the most common causes of death in the city-state – all of which are covered by most critical illness insurance products.
3. What Other Kinds of Insurance Products Should I Consider?
Maid insurance, car insurance, travel insurance and fire insurance are all important products in Singapore that can come in very useful under unexpected circumstances. Many of these policies are relatively inexpensive to purchase, but offer huge benefits in the event of, say, succumbing to a minor illness on vacation or finding yourself involved in a traffic collision.
4. What is An Insurance Rider?
If you’ve already started shopping around for insurance, you may have come across the term “rider”.
A rider is basically just an insurance add-on that enables you to add extra coverage to an existing insurance policy for a small additional fee. Pretty much every leading insurance company will offer you the option to purchase various riders.
5. What Type of Insurance is Best for Young Adult?
The best type of insurance for a young adult depends on their individual needs and priorities. Some plans that may be beneficial include health insurance, personal accident insurance, critical illness insurance, and term life insurance. It’s important to assess your needs and seek advice from a financial advisor when choosing a plan.
Conclusion
There are a lot of different kinds of insurance plans available in the city-state, some that will (and some that definitely won’t) be appropriate for you. As with any financial decision, comparing the market is the best way to secure the best possible value. Just be sure to keep in mind, that:
- Private health insurance provides coverage for things that MedShield Life may not cover, such as better beds in public hospitals or access to private hospitals.
- There are two types of life insurance: term and whole life, each offering varying levels of coverage. Investment-linked policies may include a cash value component.
- Critical illness coverage, personal accident plans, and other insurance products can benefit anyone, but it’s essential to determine your unique needs before comparing the market.
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