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5 questions to ask when buying insurance in Singapore

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Buying insurance is something that Singaporeans should consider as they nurture their career and pursue their life goals. Having the right insurance can bring peace of mind, as it offers you the means to protect yourself, your family, and the things you care about. Setting up an insurance portfolio while you’re young and healthy is a practical idea, as your age and health condition are some of the most important factors that insurance providers consider when they set your premiums.

There are different types of insurance Singapore citizens and residents can get, and they are available from a good number of insurance providers. Choosing the right option, then, can be quite a challenge for many consumers. If you’re planning to get insurance for yourself, here are some of the questions you can ask to narrow down your options.

What are your needs and objectives?

Before you can choose an insurance product that suits your needs, you must first have a clear idea of why you’re getting insurance in the first place. Ask yourself: what situations do you want to be prepared for, and who should benefit from the insurance policy? Among the most common situations that people want to brace themselves against financially are death, critical illness, disability, and property damage. What are yours, and if you have multiple concerns, which one is your top priority? Answering this can help you find the right type of policy.

Anything and everything can be insured these days, but in general, insurance products in Singapore can be divided into 3: life insurance, health insurance, and general insurance. These categories can be further divided into subcategories depending on their purpose, beneficiaries, and other relevant details.

For example, you can choose an insurance policy that provides financial support to your dependents should you die unexpectedly or become totally incapacitated. Alternatively, you can choose a savings-oriented life insurance policy that will allow you to invest and grow your money. Health insurance, on the other hand, can provide you with financial assistance should you need medical attention in the future, while general insurance protects you from losses due to damage to property. 

What is your current financial situation?

Insurance coverage comes with a price or premium, which is paid for monthly, quarterly, or yearly. The amount that you pay for is dependent on the risks that you are exposed to as well as the amount that you are insured against. If you want your family to receive a particular amount each month should you become incapacitated, then you can expect to pay more than the said amount for your monthly premium.

It’s a smart decision, then, to evaluate just how much your policy will cost you. Without compromising your budget and other financial responsibilities, how much money can you set aside every month to pay for your insurance? If you need guidance on setting a particular amount, you can consult with a financial adviser or insurance agent.

What are the options available to you?

Singaporeans are spoiled for choice when it comes to insurance providers. There are hundreds of insurance agencies in the country that offer both general and specialised insurance coverages. Even if you have a particular type of insurance in mind, you still have to select a provider that can offer you insurance options that are suited to your particular needs.

Finding the right provider can be a tedious task, but there are tools that you can use to simplify your options. You can use the website CompareFirst to evaluate different insurers and the products they offer, for one. You can also choose to meet with agents from different insurance companies so that they can directly address your concerns. Before buying a particular product, though, make sure that you’ve compared and evaluated your options thoroughly.

What are the policy’s limitations and benefits?

When evaluating insurance policies, pay attention to the limits and benefits of the products offered to you. What’s the policy limit or the maximum amount that the insurer will pay for a particular loss? If you’re getting a health insurance policy, what types of diseases and medical procedures does it cover? If your medical bills exceed the maximum amount covered by the insurance or if the procedure you underwent is not covered by the policy, then you’ll be responsible for paying for those bills.

How many years should you pay for the policy?

The insurance policy’s term refers to the period of time during which the insured is protected against particular events or losses, and this can vary from one insurance product to another. Some insurance policies can be paid for in 10 or 20 years’ time and offer lifetime protection to the policyholder. There are also short-term insurance policies that offer temporary protection. These short-term policies can last for a few months up to a year, and they can be paid upfront or in instalments.

Don’t feel pressured to commit immediately while you’re shopping for an insurance provider and policy. Ask questions and study which policy will best fit your needs and lifestyle. After all, you are more likely to feel secure about your choice in insurance if you’ve made every effort to get to know your options.

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