By As Singaporeans, we’ve heard of the myths and legends surrounding our little nation. Like how the legendary Sang Nila Utama was presupposed to have seen a lion when he stepped foot on our shores, and never on the Mandai Zoo both. Or concerning the boy killed by the jealous sultan who bled and bled till Bukit Merah received its literal identify of “crimson hill”. Or what concerning the fable when COE was simply $2? Wait, that actually occurred? Don’t lie lah. Anyway, we’re smarter Singaporeans now, proper? We are able to inform when one thing is actual and one thing is simply bull. Besides in terms of insurance coverage, apparently.
Listed here are a number of the huge insurance coverage myths that Singaporeans nonetheless imagine in.
Insurance coverage Fantasy 1: Insurance coverage must also be an funding
You possibly can blame a lot of your distant relations, military buddies and first faculty classmates for this one. You recognize, particularly those that turned insurance coverage brokers and began promoting you investment-linked insurance policies. Many Singaporeans might have thought that it was an important concept once they had been being offered on the concept – because you’re paying your hefty insurance coverage premiums anyway, you would possibly as properly get one thing out of it while you’re able to retire.
However the fact is, simply because an insurance coverage coverage claims to have the ability to provide you with returns sooner or later doesn’t imply it’s a superb deal. In truth, by no means purchase an insurance coverage coverage primarily based solely on the type of returns you’re being promised. That’s no higher than shopping for a Huge Sweep ticket each week. Certain, you COULD win 1,000,000 {dollars}, however the possibilities of that taking place are slim to none. A great insurance coverage coverage is one which is ready to defend you, not only one that guarantees the best returns.
Let’s put it merely – a time period life insurance coverage coverage that doesn’t have any funding options will most likely solely value you as little as $200 to not more than $1,200 a 12 months. Alternatively, a complete life insurance coverage coverage with all of the bells and whistles will set you again just a few hundred {dollars} every month. At the very least. And the most effective half is? They each supply you an identical type of protection.
Relying in your scenario, chances are you’ll be higher off simply shopping for time period insurance coverage and placing the cash you’ve saved into different funding choices that aren’t associated to your insurance coverage firm. However wait, you say. I’ve at all times been instructed time period insurance coverage is nugatory! Effectively, that brings us to the subsequent fable.
Month-to-month Premium
S$23.25
Month-to-month Premium
Singlife Time period Life Collection Two
- Min. Dying and TI Protection
- S$410,000
- Min. Crucial sickness Protection
- S$50,000
- Max. Renewable Age
- 75
- Month-to-month Premium
Reference Premium Profile
The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured. - S$23.25
Apply NowApply instantly on MoneySmartMore Particulars
Key Options
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The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.
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Customise your coverage time period from 1 – X years as much as ANB 99
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Obtain a lump sum coverage payout upon Dying or Terminal Sickness (TI)
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Select to extend your protection quantity throughout key life occasions with out provision of extra medical underwriting
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Take pleasure in computerized renewal of your coverage upon expiry
Normal Info
| Max. Renewable Age | Age 75 |
|---|---|
| Protection Phrases | 1 – X years as much as ANB 99 |
| Complete Everlasting Incapacity (TPD) Protection Restrict | Age 70 |
| TPD Payout Restrict | S$5,000,000 |
Protection Info
| Dying and TI | Min. S$410,000 |
|---|---|
| Crucial Sickness | Min. S$50,000 |
| TPD | Min. S$50,000 |
| Interim Unintentional Dying Profit | |
| Terminal Most cancers Profit | |
| Stop Smoking Incentive |
Buyer Service
| Software Technique | Through Insurance coverage Advisor |
|---|---|
| Medical Examination Required | |
| Coverage Supply Technique | Softcopy |
| On-line Coverage Administration |
Insurance coverage Fantasy 2: Time period Insurance coverage doesn’t defend you as a lot as Entire Life Insurance coverage
Not all insurance coverage agen- sorry, I meant to say, monetary planners, are alike. It’s true, most are real about wanting that can assist you and serve you in one of the simplest ways attainable. Sadly, there’ll at all times be one or two who care extra concerning the commissions they are going to be incomes from you than truly ensuring you’re instructed the reality, the entire fact and nothing however the fact.
For those who’ve ever been led to imagine that time period insurance coverage is one way or the other inferior to complete life insurance coverage, then I’m afraid your monetary planner might not have your finest pursuits at coronary heart. The reality is, when making an attempt to reply the query, “Which is healthier? Time period life insurance coverage or complete life insurance coverage?” The reply is: they serve totally different functions. It doesn’t imply that one is healthier than the opposite. It simply implies that you need to choose the coverage that’s finest for you. Which suggests your monetary planner ought to enable you to perceive how each work and promote you probably the most acceptable coverage – and never the coverage which provides your monetary planner will get a better fee.
The reality is, time period life insurance coverage usually offers you an identical protection as complete life insurance coverage, and at way more inexpensive premiums too. For those who’re simply beginning out in your profession path, and cashflow is an issue, then a time period life insurance coverage coverage might be the extra smart possibility. Nonetheless, as a result of premiums get dearer as you become old, there’ll come a time when paying for complete life insurance coverage would be the extra prudent possibility. At this later age, you not solely can afford the upper premiums, however try to be a bit extra savvy and admire the liberty of selection in terms of investing.
Month-to-month Premium
S$157.10
Month-to-month PremiumCovers Dengue
China Taiping I-Safe
- Min. Dying and TI Protection
Terminal Sickness (TI) Protection
TI Protection is relevant when the sickness is predicted to result in dying inside 12 months. - S$50,000
- Crucial Sickness Protection
- Add on
- TPD Payout Restrict
- S$3,000,000
- Month-to-month Premium
Reference Premium Profile
The Month-to-month Premium proven is for illustration function solely.
It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage premium time period of 20 years and S$100,000 sum assured and X2 multiplier. - S$157.10
Apply NowApply instantly on MoneySmartMore Particulars
Key Options
-
The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage premium time period of 20 years and S$100,000 sum assured and X2 multiplier.
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Safety in opposition to Dying, Complete and Everlasting Incapacity and Terminal Sickness
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Choice to reinforce your safety as much as 4 instances
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China Taiping I-Safe gives 4 premium time period choices: 10, 15, 20 or 25 years
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Alternative of paying premiums on a month-to-month, quarterly, semi-annual or annual foundation
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Enhanced Protection choices can be found
Normal Info
| Premium Phrases | 10, 15, 20 or 25 years |
|---|---|
| Multiplier | X2/ X3/ X4 |
| TPD Protection Restrict | Age 70 |
| TPD Payout Restrict | S$3,000,000 |
| Participation Kind | Entire Life Insurance coverage |
| Construct Money Worth |
Protection Info
| Dying and TI | Min, S$50,000 |
|---|---|
| Crucial Sickness | Add on |
| TPD | Min. S$50,000 |
| Unintentional Dying Profit | |
| Retrenchment Profit |
Coverage Supplies
| Product Brochure | Learn Extra |
|---|
Buyer Service
| Software Technique | Through Agent |
|---|---|
| Medical Examination Required | |
| Coverage Supply Technique | Through Put up |
| On-line Coverage Administration |
Insurance coverage Fantasy 3: Insurance coverage from the federal government is sufficient
Lastly, there are these Singaporeans who belief the federal government implicitly and imagine that they’ve your finest pursuits at coronary heart. Due to that, there’s no must depend on something extra that what the federal government gives. For instance, with medical insurance schemes like MediShield Life, medical financial savings schemes like MediSave and life insurance coverage schemes just like the CPF Dependents’ Safety Scheme, chances are you’ll suppose that you simply’re sufficiently coated by the federal government’s many programmes. Heck, even while you purchase a property or a car, the regulation forces you to get probably the most fundamental of fireside and accident insurance coverage for these. The key phrases right here, nonetheless, are “most elementary”.
Month-to-month Premium
S$26.15
Month-to-month PremiumPromotionCovers COVID-19
AVIVA MyProtector – Time period Plan II
- Min. Dying and TI Protection
- S$100,000
- Min. Crucial sickness Protection
- S$50,000
- Max. Renewable Age
- 75
- Month-to-month Premium
Reference Premium Profile
The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured. - S$26.15
Promotion: Stand up to twenty% perpetual low cost on Time period plan and riders for min. sum insured of $1 million!Legitimate till 31 Dec 2020Apply NowApply instantly on MoneySmartMore Particulars
Key Options
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The Month-to-month Premium proven is for illustration function solely. It’s calculated primarily based on an annual premium for a 30-year-old, male, non-smoker with a coverage time period of 20 years and S$500,000 sum assured.
-
Get a lump sum payout upon dying or analysis of Terminal Sickness (TI) inside the coverage time period
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Select from protection time period of 5 or 10 – X years as much as 85 Age Subsequent Birthday (ANB) at each 1 12 months interval
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Renew your fundamental coverage each 5 or 10 years with out extra medical underwriting
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Improve your fundamental coverage protection upon reaching key milestones in life
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Convert your fundamental coverage to a brand new endowment or complete life coverage with out extra medical underwriting
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An Interim Unintentional Dying Profit is included beneath the Coverage
Normal Info
| Max. Renewable Age | ANB 75 |
|---|---|
| Protection Phrases | 5 years or 10 – X years as much as ANB 85 |
| Complete Everlasting Incapacity (TPD) Protection Restrict | Age 85 |
| TPD Payout Restrict | As much as S$2,000,000 |
Protection Info
| Dying and TI | Min. S$100,000 |
|---|---|
| Crucial Sickness | Min. S$50,000 |
| TPD | Min. S$100,000 |
| Interim Unintentional Dying Profit | Max. S$500,000 |
| Terminal Most cancers Profit | |
| Stop Smoking Incentive |
Buyer Service
| Software Technique | Through Insurance coverage Advisor |
|---|---|
| Medical Examination Required | |
| Coverage Supply Technique | Hardcopy |
| On-line Coverage Administration |
Take MediShield Life for instance, whereas it covers everybody for probably the most fundamental of medical wants, it’s solely meant to make sure you have the naked minimal of medical insurance, therefore our comparability of it to a Chery QQ. For those who can afford it, and most Singaporeans can, you need to apply for an Built-in Defend Plan – a kind of medical insurance that provides you higher protection with out duplicating the obligatory MediShield Life.
As a result of, on the finish of the day, the largest fable that Singaporeans imagine about insurance coverage is that they’re sufficiently coated. However till you are taking the time to undergo your insurance policies and know precisely simply how a lot insurance coverage protection you may have? You run the danger of going extinct and turning into not more than a legend – the Singaporean who didn’t have sufficient insurance coverage.
