Insurance Agency Singapore | Commercial Insurance and Personal Insurance

5 reasons why insurance is important to an individual in our everyday life

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With the term “insurance” many people understand only about LIC policies. Actually it is not their fault, as they don’t get much exposure and not able to explore why insurance is important. This is good that Govt. is also encouraging the awareness of insurance by various schemes.

Buy some security in advance and be smart

The major benefit of insurance policy is it will provide you risk coverage. E.g. two wheeler insurancewill cost you some Rs 1000/- every year. With that you can make sure that in case of any damage to your bike you can get enough recovery benefit. Similar to that life insurance, car insurance, health insurance and now a day’s even mobile phone insurance will help you to buy a security in advance. An iPhone user can understand the importance of insurance, as the phone can damage anytime. The interesting thing is you have to spend a little amount to buy that coverage. If you plan accordingly then with this small investment indirectly you can be tension free.

Be tension free and take risk as much as you want

Just imagine how much we are planning every day for our future. Child education, marriage,retirement planning, travel plan and many things. What if the earning member of the family died suddenly? These plans for rest of the family should not impact. In that case a term insurance plancan simply save your family’s life. Now those who really understand the importance of insurance would have already buy a term plan. And for others don’t wait till it is very late. Just imagine a minimum amount of 10,000 – 15,000 can buy a life cover of 1 crore. Now you can take risks, don’t have to feel the pressure of doing something out of your box. Enjoy every day life with your family, as everything is planned now.

By: Santanu

See full story at www.mydailylifetips.com

Which insurance covers are a must-have? Find out

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Vikas is 30 and about to start a family. He has been saving regularly to meet his goals of buying a house, going on a holiday abroad, retirement and the like. He bought life insurance with a sum assured of Rs 10 lakh when he started working seven years ago. He thinks he is sufficiently covered as he has his life cover and investments to fall back on if there is an emergency. Is he right in thinking that just topping up his life insurance policy now that a baby is on the way is enough?

Vikas is right in identifying and saving for his life goals. However, he has to be around to provide the funds needed to meet the goals. In case he dies early, the entire investment process would be derailed. His family will suffer loss of income, thereby putting long-term goals and the investments meant for meeting those goals at risk.

A pure term insurance policy is apt for meeting risks arising out of untimely death and therefore, should be adequate. It must be reviewed at every life stage—like when starting a family. He must take into account inflation, his current financial situation, number of dependents and the future financial and lifestyle needs of his family in his absence.

Just as death is a possibility one cannot ignore, so is the loss of earning capacity. The personal accident policy meets the need for replacing loss of income. Vikas must look for a comprehensive policy, which covers all contingencies— death, permanent total disability, permanent partial disability and temporary total disability.

Read more at economictimes.indiatimes.com

Are you buying insurance blindly? Find out

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Financial planners never tire of telling their clients not to mix insurance with investment. “If a policy generates investment returns for you, it stops being an insurance policy. It will neither give you good protection nor good returns,” says Sanjeev Govila, a Sebi-registered investment adviser and CEO of Hum Fauji Initiatives.

Yet, almost everybody has an insurance plan in his portfolio. Many buyers fall into the trap because a close relative or family friend makes them buy an insurance plan from them.

To be fair, many insurance buyers are misled by agents and financial advisers. Banks are at the forefront of mis-selling. If you go to a branch, relationship managers pounce on you with unsolicited investment advice. This used to be a problem only in foreign establishments and private banks but now even PSU banks are indulging in these unethical practices. The hefty sales targets and lucrative earnings from commissions (sometime more than the salary) have turned relationship managers into mis-sellers of insurance.

Banks have already been warned by the RBI. “The RBI would take strict action, including heavy penalties, if the banking industry continues to mis-sell third party products,” RBI Deputy Governor S.S. Mundra said recently. He has suggested that banks put in place a system of period inspection on sale of third-party products by their own staff or direct selling agents.

However, more needs to be done. One critical step is to ban the sharing of bank account details with the sales team. Most of the mis-selling happens because the sales team knows who has how much in his bank account. The RBI also needs to strengthen the ombudsman system and make the complaint procedure more customer friendly.

Read more at economictimes.indiatimes.com

Being ‘too educated’ about insurance could lead to ‘overconsumption’: Experts

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File photo of a hospital ward in Singapore. (Photo: SGH)

According to health experts, such cases do happen in the private healthcare sector. “Insurance sometimes creates the so-called moral hazard of overconsumption,” said healthcare economist, Lee Kuan Yew School of Public Policy’s Associate Professor Phua Kai Hong.

“That is a worldwide phenomenon and I don’t think Singapore is any different. So the moment you bring in private insurance to complement or supplement, you have to be very clear about what the rules are.”

Dr Sabnis added: “There will be a few guys who will definitely bend the rules, you can’t prevent that. Private hospitals, if I may say, also look at what value the person will bring per day.”

Insurers have noticed the trend and they say overconsumption of health insurance could make premiums rise more quickly than they already have due to medical inflation.

Said Mr Seah: “Maybe a ‘commonsensical’ approach to this would be: ‘If I have to pay out of my pocket, instead of through insurance, would I still need that treatment, and secondly, would I still be looking for that specialist treatment?'”

The key in this entire equation, the LIA said, is “sustainability”, which is why it wants to collaborate with the Government and healthcare providers, such as doctors and healthcare institutions, on how best to achieve this. It will also have to convince consumers who are, after all, paying customers.

“We have been paying insurance premiums,” said “Andrew”. “All these years when nothing happens, we don’t claim. And when the time comes, we want to be compensated properly. We feel that since we’ve been paying the premiums, then make use of it.”

If overconsumption becomes a bigger problem, there are concerns that insurers may lobby for Medisave limits to be raised so people can cope with rising premiums. Healthcare economists added that would eat into a fund meant for pressing medical expenses and there have to be tighter regulations to clamp down on excessive claims.

By John Leong

See full story at www.channelnewsasia.com

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