4 ways to check if you’re actually insurance-savvy

By Joanne Poh, 04 June 2019 5192

So, you’ve got a healthy income, you’re able to enjoy a decent lifestyle and you’ve already started planning for the future. While these are indications of financial savviness, a big part of being financially savvy is how well you manage your insurance protection.
How insurance-savvy are you? Here are a few questions to ask yourself.

1. Do you understand your insurance needs?  

It’s been said again and again that insurance is a key pillar of financial security. But what exactly do you need in order to be financially secure, given your individual circumstances?
For starters, if you are living in Singapore, medical insurance is a necessity due to the high cost of medical care, for yourself as well as for any family members you financially support. Without insurance, a serious illness or accident could potentially set you back financially.
Life insurance is another area to pay attention to when assessing your insurance needs. While health insurance is straightforward, life insurance may meet different needs for different people. One such need could be protecting your family’s standard of living. No matter how healthy your income is right now, you may not be able to maintain your family’s standard of living if you lose this income (should you pass away or be unable to work due to a serious illness or total and permanent disability). Another need could be ensuring your child will always have access to education. Even if you plan ahead to save for your child’s university fees, unfortunate events can derail your plans. Having a life insurance plan ensures that your child’s education will be taken care of in such circumstances.
Ultimately, insurance is a tool that lets us meet our protection needs. It is essential to understand our own needs before diving into multiple products with the hopes of finding a ‘good’ one. Understanding your needs is the first step to being insurance-savvy. With a good understanding of your needs, you can then find a product that is suitable for you. We have created a filter to help you browse our various life insurance products according to your needs.

If all this is still daunting, and you’d prefer speaking to an advisor, you can speak anonymously without obligation with our Income Advisors at Advisor Connect.

2.  Do you know how to effectively compare product features across products?  

Once you better understand your insurance needs, it is not difficult to familiarise yourself with the main product features of each type of insurance plan.
One good way to better understand insurance is to simply compare plans online. Common comparison points are relevant product features, protection coverage, premium term, payout amount, etc. With knowledge of your insurance needs, comparison becomes easier. However, with the abundance of products in the market, how do you find the best product to meet your insurance needs as well as your other preferences and constraints?

We have come up with a comparison tool that allows you to compare products based on the following features:
  1. Policy term
  2. Benefit Features
  3. Premium Term
  4. Payout
This makes it easier for you to compare across similar products, finding one that is best for you. If you want to dive into the details, you can access the PDF brochures for more information.

3. Are you getting the best value for your insurance premiums? 

After determining your insurance needs and shortlisting a few products that suit your needs, the next step is to find the product that gives you the most value. The typical way to do this is to get your insurance agent to generate various benefit illustrations (BI) for you. While this typically depends on how fast your agent responds to you, we’re offering you something immediate and flexible.
Get your quote for various Income insurance products immediately. Adjust the following features to find the best value plan available online, according to your budget.
  1. Premium amount
  2. Premium term
  3. Premium frequency
  4. Sum assured

If you’re using these quotes for comparison, easily save the quotation by emailing it to yourself.
By comparing insurance quotations for different plans and looking at the features you get at each price point, you will be better able to determine which plans give you the best value for your money.

4.  Are you making use of the platforms insurers provide?  

We all have different preferences when it comes to purchasing insurance. Some of us prefer to get a trusted insurance agent to recommend a good product and process the application for us. Others may prefer to do our own research and comparison, and purchase the product directly with the insurer.
As the insurance industry changes, Income is now offering you an online platform to purchase your life insurance. In addition to the above comparison of features and getting a quote, you can now purchase your life insurance online in approximately 30-60 minutes, giving you the convenience and flexibility to purchase a suitable life insurance from the comfort of home.
While purchasing your life insurance online doesn’t necessarily make you insurance-savvy, knowing your options for purchase enables you to make the choice that best caters to your preferences. If you prefer to be fully empowered in your purchasing journey, try out the platform today.

Regardless of how insurance savvy you are, do not be discouraged. What matters most is taking steps to become well-informed and get the best plans to cover your needs. Let us guide you through the process with a quick needs analysis and comparison of suitable products, and help you find the best value online today.

Important Notes:
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income insurance advisOr.

This advertisement has not been reviewed by the Monetary Authority of Singapore.