Which insurance products do you need?
You may not need all the insurance products there are on offer, and it may be expensive to pay for so many insurance premiums. So, decide which ones you really need based on your situation.
Here’s an overview of the different types of insurance products available:
Click here for a table setting out all the different insurance products in the market, and their uses.
|Term Life||Whole Life||Critical illness||Medical||Auto||Property||Travel|
|Purpose||Replacement for expected income if policyholder dies||Replacement for expected income if policyholder dies, and wealth transfer tool||Coverage for critical illnesses, total permanent disability, or death||Coverage for medical treatment||Coverage for auto accidents and 3rd party claims||For theft and damages to home||Injury and death during travel,and involuntary travel plan changes|
|Coverage||Expected income losses||Expected income losses; payout equivalent to premiums paid||Expected income loss||Surgery and hospitalisation (including public hospitals); critical illnesses; long-term care||Theft and fire; property, personal injury and death in own vehicle; third party property, personal injury and death||Theft of furniture and belongings; damages from fire and adverse weather||Death benefit; surgery and hospitalisation; travel plan changes|
|Suitable for||Working individuals, parent/carer||Working individuals||Working individuals, individuals with families||All individuals||Car owners and their family members||Home owners||Travellers and their family members|
|Factors affecting Premium||Age; existing conditions; coverage relative to existing income; number of dependents||Age; existing conditions; coverage relative to existing income; number of dependents||Age; gender; smoker/non-smoker; expected insurance payout||Age; existing conditions; lifestyle factors; previous medical history and claims; whether cashless or reimbursement-based||Vehicle value; driving experience of holder; accident history and previous claims||Property value; furniture value; fireproofing of home; previous claims||Travel location; travel duration|
|Term Length||5-40 years from purchase||Until death||Until age 85-100 or death||Until death, or specified illness/age||1 year||1 year||Duration of travel, up to 1 year|
|How to Buy||Agent; broker; online||Agent; broker||Agent; broker; online||Agent; broker; online||Agent; broker; online||Agent; broker; online||Agent; broker; online|
- Medical insurance
Medical insurance covers the cost of medical treatment at a private hospital that you might not be able to afford otherwise. It’s better to get medical insurance while you are still young and don’t have any prior medical conditions that may prevent you from getting coverage. Check out our article on Medical Insurance for more information and tips on how to pick the right medical insurance for you.
- Life insurance
Life insurance provides a sum of money to your dependents (like your children and spouse) in the event of your death or if you become permanently disabled. This is an important insurance to consider if you have a family or are planning to start one.
Check out our article on Life Insurance for more information and tips on how to pick the right life insurance for you.
- Motor insurance
Motor insurance provides coverage for repairs in the event that your vehicle is damaged in an accident, or if you caused damage to another vehicle. The insurance premium is usually paid annually when you renew your road tax and the cost is calculated based on the value of your vehicle.
Check out our article on Motor Insurance for more information and tips on how to pick the right motor insurance for you.
- There are also other types of insurance that you may not need right now, but keep them in mind in case you will need them in the future:
- Fire insurance is a type of home insurance that protects your home against loss or damage due to unexpected events such as fires, lightning strikes, or gas explosions. As your home is probably your biggest investment, it makes sense to have it insured.
- Personal accident insurance provides you with coverage for injuries, death, or permanent disability caused by accidents. This insurance would be suitable for people with dependants whose work involves manual labour or the operation of machinery. You should check whether your employer provides personal accident insurance for you.
- Travel insurance provides compensation for injuries or losses suffered while travelling. It doesn’t cost much to purchase insurance for a single trip so be sure to get travel insurance when you plan a trip overseas. This can be purchased online or through your travel agent.