Friday, August 13, 2010

I am looking to buy insurance in Singapore. What are the factors I need to consider?

What to consider when you want to buy life insurance in Singapore?

As you are shopping around for insurance quotes and insurance companies, these are a few basic factors you need to consider before you make any decision.

How much life insurance cover do you need?
You can refer to a related post to find out just how much cover and sum assured is enough. The calculations to determine the insurance cover needed include financial obligations, financial support, financial gift and replacement of income.

How long do you need the insurance for?
Knowing how long you need the protection of insurance for will play a part in knowing what types of life insurance products may be suitable. Do you need the insurance cover for a specific number of years only such as for a specific loan payment period or do you prefer the insurance protection for the whole of your life?

What is your budget for insurance premiums?
Knowing how much sum assured and how long you need the coverage for is one thing but your ability to pay the insurance premiums also need to be considered. For example, if you require a specific sum assured but your budget is limited, you may need to buy a term life insurance policy to get the required insurance cover even if you may prefer a insurance policy that can accumulate cash values.

What types of insurance policies should you buy?
Every plan has its pros and cons, find out more about the four main types of life insurance products in Singapore before you make a decision to see which is suitable to your financial needs and wants. The four main types of insurance policies are whole-life, term life, endowment and investment-linked.

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