This article was first published on 23 January 2018 and updated with additional information.
Insurance is one of the key components of personal finance. Buying the right type of insurance can not only protect ourselves, but also our loved ones who may be reliant on our income.
If budget is of no concern, all of us would want to buy the best possible coverage for ourselves and our loved ones. However, we live in a real world where we face budget constraints and have other financial objectives such as retirement planning that we also have to work towards. Hence, it’s essential to ensure that you buy the right coverage you need, not just what your insurance agent is trying to sell you.
To help you understand the different types of insurance policies that you may need, we have this simple guide. This guide compiles all the useful insurance articles that we have written on DollarsAndSense.
If you are new to insurance and want to learn more, this guide is meant for you. You can read the articles in the links below in sequence, as we have designed it to educate readers in a step-by-step manner. However, if there are specific areas about insurance that you wish to find out more, feel free to skip to the parts that are most relevant to you.
More importantly, we hope that this guide will help ensure that you buy the right insurance policies that you need.
To start off, we should first understand the importance of insurance. There are three main types of insurance policies that we can consider. Health insurance, life insurance and general insurance.
Health insurance protect us against the possibility of falling ill and incurring high healthcare cost.
Government Health Insurance Policies: In Singapore, MediShield Life provides basic, compulsory coverage, while Integrated Shield Plans are optional policies that provide additional benefits.
Medical Expense Insurance: Cover your hospital and surgical expenses.
Critical Illness Insurance: Gives you a lump sum pay out to help with expenses when you are diagnosed with a major illness
Long-Term Care Insurance: Pay the cost for care you need when you are too weak to look after yourself.
While health insurance is meant to cover our healthcare cost in the event of an illness, life insurances provide coverage for our loved ones in the event that we are no longer around to provide for them.
There are two main kinds of life insurance policies. Term and Whole Life. Term provides life insurance coverage for a limited term period while whole life insurance, as its name suggests, provide coverage for life.
Here are some articles that you can read to better understand these two types of life insurance policies.
Term Life Insurance
Whole Life Insurance
General insurance is meant to protect the assets you own. Example of general insurance policies include home content insurance, travel insurance, maid insurance and even pet insurance. You can find out more about each type of policy in the links below.
Car Insurance: Compulsory insurance for damages (including third-party liability) for your vehicle.
Personal Accident Insurance: Insures you against accidents of all kinds.
Home Content Insurance: To protect the content in your home
Travel Insurance: To cover the cost of any travel inconvenience you may sustain while you are outside Singapore
Maid Insurance: Health insurance coverage from your domestic helper in Singapore
Pet Insurance: Pet insurance provides coverage for pets.
Group Employee Benefits: Insurance coverage provided by your company as part of a benefits package.
Buying Insurance For Others
Lastly, if you are thinking of buying insurance policies for others, here are further readings you can consider.
For your children:
For your elderly parents:
For your foreign spouse: