Singapore is a country with strong social safety net programs. It is well-known for its excellent education system, but the people living here can also benefit from extensive subsidies for healthcare and housing programs, support for retirement needs, as well as assistance for lower-income families and vulnerable sectors of society. In addition to this, the government and the insurance providers that operate in the country make it easy for Singapore’s residents and citizens to access life insurance products and packages. Having a life insurance policy that is well-matched to your needs and objectives—not just for yourself but also for your dependents—may prove to be a lifeline in times of future need.
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But before you can rely on your life insurance plan, you still need to find and sign up for a product that suits your current circumstances and future life stages. At the same time, you need to avoid the common mistakes that many in Singapore make when shopping for the best life insurance options. These are:
Not having a clear objective when shopping for life insurance products
There are many types and variations of insurance products, and to find the best one, you must first have an idea of what you’re looking for. Using the CompareFirst website, you can do a cursory check of the insurance packages available on the market to find out what your options are, but you also need to know your objectives for buying insurance products. Why do you want to buy life insurance in the first place? Do you want to have access to a form of support in case you fall ill or get injured, or are you more concerned about supporting your loved ones in case your health fails you? Also, there’s the question of when you want to receive your funds. Do you want to use your money after you retire or will it be exclusively for the use of the people that you’ll leave behind? The answer to these questions will help you decide which is the right product for you.
Failing to understand that there are different life insurance policies
The companies that sell life insurance plans in Singapore have much to offer, and some of these products fit a certain demographic or objective better than the others. There are 3 main types of life insurance packages that are being offered in Singapore. The first, term life insurance, has a fixed expiry date, which can be a set age or number of years after you’ve purchased the product. The second, endowment and life insurance, offers life insurance and a savings component that will be paid out at a fixed maturity date. Finally, there are investment-linked life insurance plans that are tied to mutual funds. Getting to know each option will help you choose the one that is best matched to your needs.
Taking a long time to buy a life insurance product
Life insurance products come with an expiry date, and this date can be a particular number of years after you started paying for premiums or once you reach a specific age. You may think that you’re too young to need life insurance products and you have a lot of time to prepare for your future needs. While this can be true, you should know that signing up for insurance while you’re still young can work to your advantage. Insurance premiums tend to go up as the insured ages or as their health condition worsens. This means that if you sign up for a life insurance plan while you’re still young and healthy, you can enjoy more affordable premiums.
Not analysing the details of the insurance product they signed up for
It’s important to pay attention to detail when shopping and signing up for life insurance products. If there’s something that you don’t quite get about the life insurance plan that is being presented to you, you should make an effort to ask about it so that you understand exactly what you’re getting into. Also, make it a point to get a plan that is suitable to your present situation and the life stages that you expect to go through. If, for example, you don’t have any dependents and you’re not planning to start a family at all, then it might be a better idea to choose a life insurance plan that will support you in your retirement years rather than one that will support your beneficiaries.
As much as many people would like to think that they are the masters of their fates and the captains of their ships, the truth is that life is unpredictable. There are a lot of things that human beings cannot control. As such, it’s a smart idea to have a fallback plan in case things go awry. This is especially true if you have people who are depending on you and whose health and wellbeing you want to care for, even after you’re gone. If you haven’t done so yet, check out the life insurance products and packages that are available to you and see which of these match well with your needs and objectives. Take care of this matter soon as you can and make things much easier for your future self and your family’s future.