What is Insurance?

Insurance is a contract between two parties. The insurer pays the insured in exchange for the insured's promise to pay back a stipulated amount of money if they suffer from a certain event such as injury or loss of property, as well as the insurer's promise to pay for any expenses associated with that event.

In a similar fashion, the insurance agent or financial advisor represents the insurance company. The role of a financial advisor is to meet with clients and determine their needs, assess risk, and then create an appropriate portfolio to match that need. In exchange, they are compensated by commissions and fees from the insurance firm.

Insurance in Singapore is regulated by Monetary Authority of Singapore Act and all financial advisors are required to hold an insurance license and conduct business as a principal of a branch.

What Types Of Insurance Are Available In Singapore?

There are a variety of insurance options in Singapore. The most common types are health, life, investment-linked, home, travel and motor insurance policies.

Let's have a brief overview on each insurance option.

What is Health Insurance?

Health insurance in Singapore is a necessity as there are several reasons why you should have health insurance. One of the most important benefits is that it helps you pay for your medical expenses when you fall ill, get injured or become disabled.

MediShield Life, a basic government health plan helps to cover large medical expenses for Singaporeans. Besides having to deal with large medical or hospital bills, you may not be fit for work during your recovery.

Private health insurance can be an important way for people to afford healthcare since the coverage can greatly reduce high medical cost treatment that MediShield Life otherwise is not able to fully cover.

What is Life Insurance?

Life insurance is a type of insurance that is used to protect the insured's family from the financial impact of his or her death.

It provides a lump sum payment, which is known as the death benefit, to the policyholders beneficiaries (e.g. spouse and children) in exchange for their agreement to pay an annual premium until the person reaches a certain age (e.g. 65).

This will provide the beneficiaries a source of income in the event of your death.

What is an Investment-linked Insurance?

An investment-linked policy is a hybrid of a life insurance policy and a savings plan.

The investor uses the funds in an investment-linked policy to purchase investments, while also having a death benefit if he or she dies before the end of the policy period. If the insured dies within the period, part of the remaining sum will be paid out to his/her beneficiary

What is Home Insurance?

Home insurance is a form of insurance that protects the owner from financial losses caused by major home repair such as fire, natural disaster, or theft.

It is worth noting that homeowners can only claim costs incurred in restoring the physical structure/fixture to original condition. Contents like furniture and personal belongings will not be covered by Management Corporation's home insurance policy.

What is Travel Insurance?

As the name suggests, travel insurance is purchased when there is traveling involved. Travel insurance policies will cover cancellation of your trip, medical care and medical expenses, lost or stolen luggage, and other travel-related accidents. 

What is Motor Insurance?

When you buy a car, you have to purchase motor insurance to protect yourself from the financial loss if the vehicle is stolen or damaged.

Motor insurance covers third-party liability and physical damage to the car. The main areas for coverage are: property damage, personal injury claims in an accident (no matter who is responsible), legal costs, third-party property damages and windscreen replacement.

There is also a no claim discount protection which will reduce your premium when you have not made any claims for several years.

It is therefore vital that you read the small print to make sure the policy you are buying covers all these areas.

Insurance vs No Insurance

The decision to purchase insurance is one that all people must contemplate. The pros and cons of having insurance versus no insurance are many and varied.

It's important to take the time to research which type of coverage best suits your needs, so you can make an informed decision on what's right for you.

Even if you have researched thoroughly, there may still be some confusion about the different types of insurance policies available today.

However, once you know how much risk exposure protection you need in each area, then it becomes easier to find a policy that meets your specific needs.  

Benefits of Having Insurance in Singapore

Some of the benefits of having insurance are that you don’t have to worry about life’s journey being as smooth as we hope it will be.

In addition, insurance can help you focus on your personal goals without having to worry about the financial consequences of something going wrong. When large financial burdens like hospital bills or medical charges arise, insurance helps meet the costs, allowing you to pursue your dreams.

Health insurance helps pay your bills should you develop certain illnesses or suffer from injury or disability.

If you become unable to work, income protection will replace your salary. This will allow you to continue having a quality of life that you have been having previously.

Life insurance provides your family and loved ones with the finances to continue living comfortably should you become unable to work or in the event that you have passed on.

Education and retirement plans are important for future planning. For instance, planning for your child to go to an overseas university and having funds set aside to take care of yourself in your old age.

Endowment plans can serve as a mid to long-term savings account. It can be used to save money for an upgrade to your property, for studying purposes, or having the choice to take time off from work.

Benefits of Not Having Insurance in Singapore

The benefits of not having any sort of insurance include not having to worry about monthly premiums, no tests for any medical conditions necessary, and you can go to whichever doctor or hospital you want.

Just make sure you have a lot of money should any unfortunate predicament happens.

How Do I Find the Best Insurance For Me?

When choosing a policy, you should go with one that is both affordable and appropriate for your needs.

The best way to find the best insurance for you is by understanding what type of risks you may be exposed to, as well as your budget. If you understand your risks, it will be easy to find the best insurance for you. 

Whether you are an employee or self-employed, you are ultimately in charge of finding and building your own insurance portfolio. Consulting and engaging a financial advisor will be a big help in doing so.

What is Financial Planning?

Financial planning is a type of management in which an individual or company identifies their long-term financial goals, such as retirement, and creates plans that will help them achieve those goals. The individual will often discuss his or her goals with a financial planner, who will then recommend certain protection and wealth accumulation strategies that are best suited for the individual's needs.

Financial planners can also potentially help individuals create budgets and develop strategies to manage their money.

Financial planning helps individuals manage and achieve their financial goals. It can be done by a finanical advisor or on one's own via research and self-education, with the goal of achieving a satisfactory level of security and wealth.

What Are The Benefits of Having a Financial Advisor in Singapore?

You should always check to make sure that your financial adviser is authorized to give you advice. Ask for their representative number so that you can check the Monetary of Authority (MAS) website to check that they are licensed.

The benefits of having a financial advisor in Singapore include the following:

1. Financial advisors provide objective, independent advice and guidance to help you make decisions about your personal finances.

2. Financial advisors can help you manage your personal finances and provide protection from unforeseen financial risks.

3. Financial advisors are trained to understand the most common types of investments, including stocks, bonds, mutual funds, and other forms of investment.

4. Financial advisors can help you plan for the future, including retirement, estate planning, and university funding.

What Are The Disadvantages of Having A Financial Advisor in Singapore?

It is important to understand that financial advisors are generalists rather than experts in specific investment fields such as stock market or real estate.

When it comes to investment-related plans, you need to understand that there are upfront fees involved in purchasing the insurance policy. This means that a portion of your premiums will go to toward paying the agent.

Recommendations often come from their own company's insurance product offerings. Certain companies only offer their own financial products through engaging their in-house agents.

This can feel like a conflict of interest because these agents are not entirely looking out for you as their client, but for their own sales target and company's incentives.

Are you an Agent or Advisor or...?

It is important for you to know that an insurance agent may also be a financial advisor, financial planner and vice-versa. Often times they will refer to themselves interchangeably so don't be surprised if they are called all three (or something else altogether).

Do You Need a Financial Advisor?

The process of looking for a financial advisor can be confusing. There are so many different types of insurance agents, and it's hard to know which one is right for you.

You want someone who will help you reach your goals without making things complicated or taking too much money off the top. But how do you find that person? 

If you are looking for a human to speak with (instead of Articial Intelligence) and to guide you in finding the best insurance for your needs, the right financial advisor can definitely go a long way in helping you find the insurance that is best suited to your needs.

Some will have a majority of insurance providers available to them and will be able to find one that has what you want at a budget that you are comfortable paying. They will also make sure to explain all of the options and insurance policies in detail so that you understand everything before making any decisions.

Why Should You Place Your Trust in Financial Advisors?

Insurance coverage and financial markets are complex and difficult to understand. It's easy to get lost in the jargon and technical terms of protection and investment management.

If you're looking for a trustworthy financial advisor, it can feel like your options are limited because some advisors may have hidden conflicts of interest that affect their advice.

The goal is to help you find products that best meet your needs at premiums that fit within your budget without any conflict-of-interests or hidden fees.

Meishi will help you create your own insurance and investment strategies to protect yourself from unforeseen risks.

With her working with you, you'll be able to make more educated financial decisions for the long term.