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Insuring Your Future
Youths in Singapore would agree that insurance is a necessity, but very few have a thorough understanding of insurance. The complexities of insurance intimidates people, and its technical jargon confuses most. How many of us can actually understand terms such as “accelerated critical rider” and “dread disease coverage?”
Still, one cannot afford to be ignorant about insurance. Life is unpredictable and even the best plans go awry. Insurance serves a similar purpose to diversifying your investment portfolio: it manages risks and protects you. When an accident happens, the potential loss you suffer is transferred to the insurance company you have aligned with.
The aim of this article is not only to help you understand why insurance is important, but hopefully compel you to take steps in insuring yourself.
Different Types of Insurance Coverage
Most of us have experienced the presence of insurance. You may remember your parents recovering some of the losses when your baggage is lost after a flight. Or your parents claiming some of the costs of an expensive visit to the doctor’s.
There are many types of insurance you can protect yourself with. For the sake of brevity, we will focus on the two we think is most essential: life insurance and medical expense insurance.
Life insurance generally covers you when a terrible accident happens, such as death, total permanent disability or TPD (such as loss of limb), or critical illness (such as cancer). Life insurance can protect those dependent on your income, whether it is your significant other, parents or your children, so they can survive in the case you are unable to continue working. It is never too early to get life insurance for yourself as premiums will increase as the years go by. Getting insured earlier means paying less in premiums in the long run.
Medical Expense Insurance
Medical expense insurance pays for medical expenses that can arise from any of the following medical treatments or procedures:
- in-patient medical treatment or surgery
- day surgery
- consultations with specialists before, during, and after the hospital stay
- X-rays and laboratory tests
Meanwhile, ‘major’ medical expense insurance will pay for heavier hospital expenses due to major illnesses like cancer or major surgeries such as heart bypass and organ transplants.
Now that you know which types of insurance you should get, another questions arise. How much should you be insured? People would usually look at the amount they need to sustain their expenditures. You should also project your future expenditures and consider the expenditures of those dependent on you.
Monitoring Your Insurance Policy
Now that you have purchased an insurance policy and are now well-covered, what’s next? You’ll want to make sure that your policies are always paid for, so you are always protected. You’ll also want to stay ahead of the game in insurance – meaning, you need to make sure your policies are not outdated. When you buy new policies or get new corporate policies, you want to make sure that you are paying as little overlaps as possible.
PolicyPal started with the aim to help you understand, manage and buy your insurance policies. We provide you with a digital overview and analysis of your existing policies to identify any protection gap in your insurance portfolio and help you to better understand your coverage. Our partnered independent financial advisors can also provide a holistic review of your portfolio and let you know what’s missing in your coverage. You never have to worry about overpaying or being under-insured.
Sign up for an account and upload your insurance policies for a free portfolio review today!
This advertisement has not been reviewed by the Monetary Authority of Singapore.
*This article is written by PolicyPal and also shared on Funding Societies.