Insurance is one of the best ways by which you can protect your finances and also secure yourself in the long run. There are many different types of insurance products in the market, each fulfilling a different function. At the same time, there are an equal number of myths on insurance which can lead to misunderstanding about getting the right type of coverage. This misunderstanding can unfortunately cause people to be underinsured. To prevent you from falling into this category, we have listed out 5 myths that are probably stopping you from getting proper insurance. Do read on and to understand more.
Myth 1: I don’t need life insurance if I am single
Fact: Having a life insurance does not just protect you but also protect your loved ones even if your marital status is single. If an unfortunate incident happened on you, your existing debts / medical expenses will fall upon your aged parents. Moreover, many types of life insurance plans offer a lump sum payout if you are diagnosed with a critical illness or total/permanent disability. This payout can help compensate for any loss in income.
Myth 2: MediShield Life is suffice to cover my hospitalisation costs
Fact: Your MediShield Life coverage is designed keeping in mind treatment at B2/C wards in public hospitals. If you prefer to receive treatment at a different type of ward, or in a private hospital, you will find that your Medishield Life payout will cover only a proportion of your bill. You will need to draw from your MediSave and/or cash to pay the balance. It is also advised to purchase health insurance with supplementary plan to get higher coverage on your bill.
Myth 3: Insurance is waste of money
Fact: Many Singaporeans are unaware of the fact that insurance is one of the way to grow your money! Investment-linked policies (ILPs) and endowment plans are perfect examples of insurance products that can help you save for specific milestones in the future. The more conventional forms of insurance – such as life insurance and health insurance – truly protect your savings when the unforeseen happens. Insurance is never a waste but rather, an investment in your financial health.
Myth 4: I need to hire a financial advisor to plan out my insurance needs
Fact: Leading insurance companies in Singapore have the details and features of their policies listed out clearly on their websites. All this information are within reach and if you have any specific doubts, you can always speak with an insurance consultant from the company.
Myth 5: My employer has insured me as part of my employee’s benefits so I don’t need private insurance
Fact: Your employer might have you covered as part of a group plan for life and health insurance. However, do note that there are plenty of limitations in group plan, and the coverage will end once you resigned from the company. It is therefore advisable to have your own personal life insurance and health insurance ready. At the same time, it is important to ensure that your family members are well-covered too.
We do hope this article has proved helpful in dispelling some common myths on insurance. Make sure that you invest in adequate coverage immediately. Take care.