Singapore is a top choice for both locals and foreigners, especially Asians, looking to buy insurance and financial products. With a well-developed financial market and many options, it’s important to know what to consider when buying insurance here. Here are some common Frequently Asked Questions with answers and key points to note.
The 2008 financial crisis showed that even big companies can face trouble. To protect policyholders, Singapore introduced the Policy Owners’ Protection Scheme (PPF Scheme) in 2011. This means if your insurance company goes bankrupt, your policy is still valid, and you can make claims.
Many people don’t know about this automatic protection and think they need extra insurance. But in Singapore, when you buy life, accident, health, or general insurance, you’re already covered. The Monetary Authority of Singapore (MAS) can also transfer the business of a failed insurer to another company, adding another layer of security.
Singapore has strict and mature insurance regulations, so claim disputes are rare. If you need to make a claim while abroad, you don’t have to be in Singapore. Just send the translated and notarized hospital diagnosis or relevant documents here. Once verified, the insurer will transfer the funds or send a check directly to you.
Many worry they won’t be able to claim their Singapore insurance policies after returning to their home country. However, Singapore insurance policies allow global claims. The only exclusion for death insurance is suicide within the first year.
High turnover in the insurance industry means many policies get reassigned. Insurance companies will assign a new agent if your current one leaves. But frequent changes can be annoying, especially if you rarely contact your agent.
It’s crucial to pick a reliable insurance agent before buying a policy. Choose one with at least three years of experience. Independent advisors are more likely to stay with you for the long term. Avoid agents offering rebates, as it’s illegal and unsustainable. Also, buying insurance from banks often means poor service due to frequent agent changes.
A knowledgeable agent, especially one with a medical background, can be very helpful when you need it most.
Rushing to buy insurance because of promotions or offers can lead to getting a product that doesn’t fit your needs. This wastes money. Before buying, compare different products and understand their benefits and limits. No single insurance can meet all your needs, so know what you need and find a reliable agent to help you.
Buying insurance in Singapore can be straightforward if you know what to look for and avoid common pitfalls. With the right knowledge and a good agent, you can make smart decisions. If you want to learn more and avoid mistakes, feel free to contact me for comparisons and personalised advice.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
With over 5 years of experience in client service industries, I come to understand and appreciate the importance of high-quality customer service and customer experience. The key is to always prioritize the best interests of customers, ensuring their needs and expectations are met with professionalism.
The passion for client service extends into my current role where I strive to deliver personalized financial planning services. With more than 150 business partners in our company, I can help you achieve your financial goals by analyzing various financial products and offering tailored financial advice.
Contact me now to request for a quotation or schedule a coffee session for further discussion. See you soon!
