New to insurance? Here’s what you need to know

Navigating the world of insurance can be overwhelming, especially if you’re new to it. With numerous types of plans available, it can be challenging to determine which ones may fit your specific needs.

Whether you’ve recently graduated, become a new homeowner, are starting a family, or are simply looking for additional financial safeguards, this article can help you gain some insights.

We’ll guide you through some common types of insurance and help you understand when and why you might need them.

The different types of insurance and why you may need them

You want financial protection for your health

Critical illness (CI) insurance

If you would like to be covered for CI such as cancer, heart attack, or stroke, a CI insurance plan might come in handy. CI insurance typically pays out a lump sum amount that can be used to cover medical expenses, replace lost income, or help you make necessary lifestyle adjustments during your recovery.

When it comes to CI plans, there’s a wide range available. Some plans cover the most common types of CI, such as FWD Big 3 Critical Illness insurance, and FWD Flex insurance that cover the CIs making up 90% of all CI claims in Singapore¹ – cancer, heart attack and stroke.

Some plans provide comprehensive coverage for a wider range of CIs. An example is FWD Critical Illness Plus insurance, which covers 37 late-stage CIs, as well as early to intermediate stages of cancer, heart attack and stroke.

Other plans may be designed to help you enhance your coverage for certain situations:

• FWD Cancer 2.0 insurance
• FWD Heart Attack insurance
• FWD Stroke insurance

Read more: What you need to know about critical illness (CI) insurance

Hospitalisation insurance

All Singaporeans and permanent residents have MediShield Life, a basic health insurance that subsidises hospitalisation expenses and some outpatient treatments. For more comprehensive coverage, Integrated Shield Plans (IPs) offered by insurers are available for enhanced financial protection.

Aside from coverage, hospitalisation plans are different from CI insurance as they are on reimbursement basis. Moreover, with effect from 1 April 2023, IPs purchased or renewed can only cover cancer treatments that are on Ministry of Health (MOH)’s Cancer Drug List (CDL)³. The CDL provides coverage for about 90% of Health Science Authority-approved cancer drug treatments in Singapore.

Aside from this, there are more differences between CI insurance and IPs that you might like to know about.

You want your loved ones to be taken care of

Term insurance

Term insurance is about looking out for those whose well-being depends on you. Whether it’s your ageing parents, supportive spouse, or young children, term insurance provides death coverage, with a lumpsum payout so your family’s financial obligations, such as housing loan or tuition fees, are taken care of and they can maintain their quality of life. It ensures that your family’s financial well-being is looked after, even if you’re not there to provide for them.

There are various term insurance options available. Assess your financial needs and ensure that the coverage aligns with your needs while remaining within your budget. For instance, with FWD Term Life Plus insurance, monthly premiums can be as low as S$2.45/month for S$100,000 in coverage⁴.

Read more: What is term life insurance?

You want financial protection for the things you value

Apart from health and term insurance plans, there is another important category of insurance that provides coverage for the things that matter to you and are integral to your lifestyle.

Travel insurance

We all look forward to an enjoyable, stress-free holiday. But what if there are unexpected events that may disrupt our plans? Imagine this: COVID-19 decides to crash the party and you have to cancel your dream vacation as a result, or your luggage takes a detour to who-knows-where. That would be a major bummer. A comprehensive travel insurance can take away most of these extra worries, so you can fully enjoy your well-deserved holiday.

FWD Travel insurance has an add-on COVID-19 Enhanced Travel Benefit that covers up to S$200,000 in COVID-19 medical expenses incurred during/after the trip. Furthermore, FWD Travel insurance also goes the extra mile with coverage for emergency medical evacuation and repatriation; and covers delays, theft or damage to your baggage.

Personal accident insurance

While travel insurance covers unforeseen events during your trip, personal accident insurance offers coverage for accidents and other unexpected health issues that may occur both during your travels and in your daily life.

For example, FWD Personal Accident insurance provide coverage for food poisoning, as well as infectious diseases such as dengue fever, COVID-19, hand, food and mouth disease (HFMD) and more. This means that you’ll have financial protection for a wider range of unforeseen health issues.

And if you ever require further treatments for your recovery or rehabilitation, FWD Personal Accident plan also covers physiotherapy expenses.

Home and fire insurance

When it comes to our basic needs, having a safe and secure home is right up there on the priority list. But what about financial protection for that home? If you’re looking for a way to safeguard your home, whether it’s a new place you just moved into or your current residence, considering home and fire insurance is a smart move.

If you live in an HDB flat, you might already have mandatory HDB Fire insurance for your flat. However, this coverage only applies to the building structure itself. It doesn’t offer any protection for the contents of your home.

That’s where home content insurance, such as FWD Home insurance, can help. FWD Home insurance ensures that your home contents, such as furniture, home appliances and personal belonging, are financially safeguarded.

Motor insurance

If you’re thinking of buying a new car or motorcycle, you’re probably caught up in choosing the perfect model and colour. Motor insurance is probably the last thing on your mind. But here’s the thing: in Singapore, it’s mandatory for every registered vehicle to have a valid motor insurance⁵, no exceptions.

While it may be tempting to go for the cheapest motor insurance you can find, there’re more to it. You’ve got to consider different types of coverage and benefits, along with other aspects of the policy that might actually matter to you.

Here’s an example – FWD Car insurance offers lifetime 50%⁶ No Claims Discount (NCD) and free 24-hour roadside assistance for accidental and non-accidental car breakdown. On the other hand, motorcycle riders may like to know that FWD Motorcycle insurance covers your transportation cost to anywhere in Singapore if your motorcycle is unsafe to ride after an accident.

It’s all about your specific needs

Insurance is all about providing coverage and protection, and there’s more to it than what meets the eye. Apart from the myriad types of insurance we’ve discussed, there are other options worth considering that meet your specific needs.

For example, if you have a foreign domestic worker, it’s mandatory to get maid insurance. And if you travel often in a year for indefinite amounts of time and require routine healthcare, international health insurance might be worth a consideration.

Insurance is designed to provide you with a safety net in various aspects of your life. Exploring additional insurance options allows you to tailor your coverage to specific situations and circumstances. So, don’t hesitate to explore these options and find the right insurance plans that align with your needs and provide you with the peace of mind you deserve.