Personal insurance is a contract between you and a company that ensures that if anything happens, be it illness or injury, you will be financially protected and able to meet your ongoing expenses. It also offers a number of other benefits including accident cover, property cover, and income protection insurance, and will help facilitate the process of claiming on welfare.
Benefits of personal insurance in Singapore
Personal insurance in Singapore protects an individual from risk and takes care of their future needs. Your personal insurance premium is a measure of the degree to which you want financial protection but is also an indication of your current situation and the demands that are likely to be placed on you in the future.
Protects you from costly financial losses
Affected by serious illnesses such as cancer, heart attack, and stroke, your household income drops significantly. Personal insurance helps to cover your hospitalization costs, medical expenses, and treatable illnesses. You are also protected against injuries sustained in accidents like traffic accidents, workplace injuries, or other mishaps. It also covers the cost of damage to your home as well as contents due to burglary or fire damage.
Helps in meeting other needs
If you suffer a serious illness or injury and can no longer work for an extended period of time, personal insurance gives you the financial wherewithal to meet daily expenses like food and utility bills until you are well enough to work again. This can also help with difficulties arising from an accident or a mishap at the workplace.
Discounts for healthier lifestyles
It is better to have the insurance coverage earlier when you are young and healthy, and not yet qualified for higher levels of insurance coverage. The more years you can accumulate in your policy, the lower your premium will be. It is also cheaper to collect the funds at this stage as opposed to later on when you are older and need long-term care or need to make regular significant medical expenses payments.
Saves you money in tax
The amount paid for premiums is tax deductible, and it is advisable to discuss the same with your financial advisor before signing up for the policy. Premiums that are paid into a personal insurance policy that is not linked to your employment may be deducted from your taxable income when filing for tax.
Saves government money
By providing for their own future needs through means of personal insurance, individuals will be encouraged to have peace of mind, and no longer need to rely on government payments in times of need. Singapore’s healthcare system will also benefit from less expenditures borne by the Government due to lower costs incurred by citizens seeking medical treatment.
Helps you to take care of your loved ones
Personal insurance helps pay for the treatment of your spouse and children if they are ill or injured, in the event that you are not around to support them. It also pays out a certain sum of money per month if you die prematurely. These benefits set aside by you in case of untimely death will help provide some financial support for your family during this difficult time.
It is important to have adequate personal insurance as a safety net for unexpected situations. With an aging population, the burden of caring for our seniors will be on the younger ones. Personal insurance makes it possible for you to take care of your dependents if you are no longer around. It also allows you to enjoy peace of mind so that your loved ones are protected regardless of their means or circumstances and financial situations.