4 Types of Insurance That Every Singaporean Needs

Click Here to Submit Your Article

When it comes to buying insurance in Singapore, there are so many options out there that one can get cross eyed just trying to research and figure out all the differences between them. Reading through all the clauses and figuring out what it necessary and what are essential add-ons, however, it very important. Even more so when living in a city like Singapore, where it is important to be covered adequately to avoid paying too much out of your pocket during an unexpected event. If you are not sure which one to get, here is a list of the four essential types of insurance policies every Singaporean should know about:

Home insurance: With the right home insurance plan, you can safeguard your home, valuables and loved ones from unexpected misfortunes, such as fire, flood, storm and any other natural disasters. However, you should not choose a home insurance policy based on low premiums because you never want to find yourself under insured when filing a claim. A comprehensive home protection plan should provide you with the right coverage, whether you own a HDB flat or a private home. HDB flat and condominium dwellers in Singapore are covered by the HDB and condo management corporation respectively but only against fire damage to their building. It is your responsibility to protect your home and belongings by taking an insurance policy that covers your own renovations, home contents, furnishings and other damages.   

Travel Insurance: Singaporeans love to travel, with frequent travels for leisure being a part of their lifestyle. In fact, people in Singapore travel more than their peers in Asia Pacific and other country worldwide. Therefore, As a Singaporean, you must take travel insurance to protect yourselves against unforeseen travel misfortunes, such as flight cancellation, loss of baggage, theft of your passport, or medical emergency. Without a good travel insurance policy, you expose yourself and your family to many risks in an unfamiliar place. So, purchasing travel insurance in Singapore can be crucial to enjoy a family holiday, especially in the face of an unfortunate accident.
Life Insurance: If your family relies on your income, you may want to provide them with financial support when you die. In which case, you should probably take up life insurance. It is essential to buy life insurance early in your life because the younger and healthier you are, the less expensive it is. Life insurance can provide income replacement to deceased’s dependents to help them deal with the loss of the family’s breadwinner. Term life insurance is the least expensive way to purchase a substantial death benefit over a specific period of time.

Car Insurance: In Singapore, it is necessary to buy car insurance when you purchase a vehicle. It is against the law to drive a motor vehicle on the road without a valid insurance policy. There are three types of insurance policies available including Comprehensive Cover, Third Party Policy and Third Party, Fire and Theft Coverage. These insurance policies serve different purposes in the event of an accident or injury. So choose your policy based on your needs and premiums you can pay.

Some insurance policies are essential for people living in Singapore, such as car insurance coverage, home insurance, and more recently, travel insurance. Others can be just as important because they will help to mitigate the financial risks if something happens to you. So, consider taking the aforesaid insurance policies to protect your family from unexpected problems that can quickly derail your plans in life.