IOLO - Smart Insurance Wallet

Learning Hub

Your one stop insurance learning hub. Helping you to learn the basics of insurance policies offered in Singapore and acquire some tips for better decision-making.

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Fire Insurance (HDB)

All HDB residents are required to have this insurance. But do you know what's excluded from coverage in case of a fire? Read on to find out more.

What is HDB fire insurance?

fire insurance covers the reinstatement costs of damaged internal structures, fixtures and the areas built by the Housing and Development Board (HDB).
It is compulsory for HDB flat owners to buy this insurance. For private property owners, it is up to your decision. And condo residents should check with your Management Corporation if this insurance has been taken out by them on behalf of the entire condo.

+ HDB fire insurance premium

Current appointed insurer: Etiqa Insurance Pte Ltd
From 16 August 2014 to 15 August 2019, the 5-year premiums (including 7% GST) are as follows:

Flat Type
5-Year Premium (Including 7% GST)
Sum Insured
1-room
$1.50
$19,300
2-room/ 2-room Flexi
$2.50
$26,300
3-room
$4.50
$41,800
4-room
$5.50
$69,100
5-room
$6.60
$19,300
Executive/ Multi-Generation flats
$7.50
$98,200
Studio Apartment (Type A)
$3.50
$29,000
Studio Apartment (Type B)
$4.00
$37,200
+ Did you know?
  • Home contents such as furniture, renovations and personal belongings are not covered by fire insurance.
  • According to SCDF, there were 2,818 fire incidents that occurred in 2016.

Home Insurance

Protect the contents of your home and your personal belongings. Continue reading to find out important exclusions to look out for when purchasing home insurance.

What is home insurance?

A home insurance protects the contents of your home such as permanent fixtures, fittings, your belongings and assets. There are many policies out there that insure different perils e.g. lightning, flash floods, overflowing water tanks or pipes,and theft by a violent entry.

+ What should you look out for?
  • Worldwide personal liability
    • Some policies cover loss of portable items (e.g. handbag, mobile phone and legal documents such as passport, NRIC and driving license) while you are outside of the home and overseas. However, there are restrictions on this coverage.
  • Unoccupied property
    • Leaving your home empty increases the risk of theft and damage.Thus, most insurers will restrict your coverage in these situations on the condition that your home must not be left unoccupied for more than a certain number of consecutive days.
  • High-value items
    • Items like jewellery have limited amount of coverage. Check if the amount stated in the policy can cover your expensive possessions.
  • Losses due to theft
    • Not all break-ins are covered. You can only claim for theft if there are signs of forced entry or exit. Insurers normally exclude valuables, paintings and antiques or impose caps on a single article (e.g. $500 apiece) or collective items (e.g. 2/3 of the total sum insured for all valuables). Inform your insurer if you need extra coverage.
  • Damaged sets
    • If your complete set (e.g. furniture) is partially damaged, it is unlikely to be able to claim the full replacement cost. However, you can claim the cost of replacing the damage parts.
+ What to do if there’s a theft or fire?
  • Make a police report
  • Try to minimise further loss or damage, if possible
  • Take pictures of the damaged items and keep them for the inspection
+ Did you know?
  • According to the Ministry of Home Affairs, more than 300 cases of housebreaking related crimes have been reported in 2015.
  • GIA discussed many common misconceptions and busted beliefs that home insurance is expensive and HDB Fire insurance is enough. In fact, home insurance is cheap because its premium range from S$50 to S$350 for S$100,000 coverage, and HDB fire insurance only covers the reinstating cost of the building structure.

Pet Insurance

Pet's medical expenses can be extremely high at times. Read on to find out what is covered in this insurance and how it can help you avoid those high medical bills.

What is pet insurance?

A pet insurance covers medical expenses for your pet but not routine visits to the vet or anticipated events e.g. vaccination.

+ Types of pet insurance
  • Lifetime (can cover ongoing issues throughout the lifespan of the pet)
    • Per condition per year cover
      • There is a cap for each condition that resets yearly
    • Annual lifetime cover
      • There is a maximum overall limit that resets yearly
  • Non-lifetime (there will be excluded conditions after your claims hit the limit)
    • Per condition cover
      • A limited amount for each condition; the condition is excluded from future payouts once it reaches the cap.
    • Time-limit per condition cover
      • Includes per condition cover in addition to a time limit (typically, 12 months) before the condition is excluded.
  • Accident only
    • Only covers accidents and not illness entirely
+ What should you look out for?
  • Death by accident or illness
    • If your pet dies, you can receive the amount you paid or the price you could sell it for. However, there are age limits. Typically, cats and dogs above 7 years are not insured.
  • Cover for advertising
    • If your pet is missing, you can claim the cost of putting up posters and rewards if your pet is found.
  • Third-party liability (dog insurance only)
    • If your dog injures a third party or damaged their property, legal costs, expenses and the claimant’s expenses are covered.
  • Overseas travel cover
    • Cost involving pet illness, accident or if veterinary treatment is needed abroad is covered.
  • Cattery and kennel fees
    • If you are hospitalised for more than 2 – 4 consecutive days and there is nobody to care for your pet, the cattery or kennel fees are covered.
  • Euthanasia, cremation and burial
    • Some policies offer a contribution to these costs.
  • Dental cover
    • Usually, covers dental work in the case of accidents but some may also cover illnesses.
  • Cover for pre-existing pet conditions
    • Very few policies cover pre-existing conditions. If there are, be careful if you decide to switch to another pet insurance.
  • Coverage for older pets
    • Premiums for older pets tend to rise every year, or even increase sharply once it reaches old age. And, some insurers may not take on older pets.
+ What animals are considered pets?

From Agri-Food and Veterinary Authority:

  • Dogs
  • Cats
  • Rabbits
  • Guinea pigs
  • Hamsters
  • Gerbils
  • Mice
  • Chinchillas
  • Red-eared sliders (red-eared terrapins)
  • Birds
  • Fish
  • Land hermit crabs (Coenobita rugosus)
  • Green tree frogs (Litoria caerulea)
  • Malayan box turtles (Cuora amboinensis)

Travel Insurance

Losing luggage abroad or having flights cancelled can be very stressful. Get travel insurance to help deal with these undesirable events when they occur. Continue reading to learn more.

What is travel insurance?

A travel insurance covers trip mishaps such as missing luggage, flight delay and even stolen passports.

+ Types of travel insurance
  • Single trip travel insurance
    • Only covers you for the span of the trip
    • Premiums usually are below S$100 (can vary based on the destination and duration overseas)
  • Annual cover travel insurance
    • Covers all your trips made within a year
    • Premiums can range from S$200 – S$500
  • Individual plan
    • Only covers one person
  • Family plan
    • Covers the whole family. However, some providers may limit the number of family members that can be covered.
+ Questions to consider

The premium can vary depending on your requirements. Ask yourself the following questions to decide which plan is right for you.

  • Do you often travel alone or with your family?
  • How frequently do you travel?
  • Which countries are you travelling to?
  • Does the country have good medical facilities?
  • Could there be natural disasters or diseases there?
  • Will you be involved in thrilling (e.g. scuba diving) or leisure activities?
  • What is the cost of your trip?
  • What benefits do you specifically need more of? (e.g. Medical Expenses)

Mobility Insurance

If you're a user of a personal mobility device or bicycle, you may want to consider mobility insurance to cover medical expenses from falls or accidents. Read on to find out more about the protection.

What is mobility insurance?

A mobility insurance covers accidental death, permanent disability, medical expenses against injuries and third-party liability after an accident when riding, mounting or dismounting a personal mobility device (PMD) or bicycle.

+ What should you look out for?
  • Personal accident benefit
    • The coverage amount for death or permanent disability due to an accident that occurred while riding, mounting or dismounting a bicycle or personal mobility device within 12 months from the date of the accident.
  • Medical expense reimbursement benefit
    • The coverage amount for medical expenses incurred in Singapore for injury due to an accident that occurs while riding, mounting or dismounting a bicycle or personal mobility device. Note that there may be a time limit from the date of accident and conditions for the claim to be reimbursed per accident.
  • Personal liability benefits
    • The coverage amount for the legal expenses representing or defending you in Singapore and/or the amount awarded against you by the court that will be paid for when you are legally responsible for accidentally injuring someone or caused loss or damage to someone’s property while riding, mounting or dismounting a bicycle or personal mobility device in Singapore.
+ Eligibility

Usually between 8 to 70 years old. Some insurers may require higher premiums for later ages.

+ Did you know?
  • Mobility insurance only covers while you are in Singapore.
  • Treatment in Singapore by a Chinese medicine practitioner or chiropractor are covered if the practitioners are registered and have a valid practising certificate.

Personal Accident
Insurance

Accidents are inevitable. However, you could minimise the financial burdens of these accidents by getting personal accident insurance. Here's a quick read to help you understand personal accident policies better.

What is personal accident insurance?

A personal accident insurance can provide financial support in the event you suffer an injury, disability, or die from an accident.

+ Common types of coverage
  • Death
  • Major permanent disablement
  • Other permanent disablement
  • Total disability
  • Partial disability
  • Medical expense reimbursement
  • Hospitalisation
  • Evacuation and repatriation
  • Mobility aids reimbursement
  • Terrorist activities
  • Treatment by a Chinese medicine
  • Practitioner or a chiropractor
+ What does occupation classes mean?
  • Class 1 – lowest premium rate
    • Professional, managerial, administrative, clerical and non-manual occupations.
  • Class 2 – low premium rate
    • Supervisory nature jobs and others not listed in Class 1; duties do not involve the use of tools and machinery, being exposed to special hazards, or substantial amount of travel e.g. sales.
  • Class 3 – high premium rate
    • Manual work that is not particularly hazardous nature but involving the use of tools and machinery.
  • Class 4 – highest premium rate
    • Manual work involving the use of tools or machinery of a hazardous nature e.g. welding.
+ What cannot be claimed?
  • Pre-existing conditions
  • Injury caused by the insured party under the influence of alcohol or any drugs
  • Hazardous sports or activities such as parachuting, racing (excludes running or swimming), mountaineering and scuba diving
  • Suicide, self-injury or wilful exposure to peril
  • Pregnancy or childbirth
  • War, civil war, ionising radiations or radioactive contamination
  • Air travel (except as a passenger) in a fully licensed passenger carrying aircraft
+ Did you know?
  • Traditional Chinese Medicine (TCM) treatment can only be claimed if something is caused by an accident and not an illness
  • Treatments by an overseas TCM practitioner are not covered

Maid Insurance

Applying for a helper can be an extremely tedious process. Maid insurance helps cover unexpected expenses and also gives your maid basic accident coverage. Read on to learn important details regarding this insurance.

What is maid insurance?

A maid insurance protects you from unpredicted expenses as you hire a new maid or renew her work permit. This includes medical insurance and accident cover for your maid that is required by the Ministry of Manpower (MOM).

+ Common types of coverage
  • Personal accident coverage
  • Hospital and surgical expenses
  • Repatriation expenses
  • Termination expenses
  • Personal liability
  • Wages reimbursement
  • Letter of guarantee to MOM
    • The insurer will issue this letter for a sum of S$5,000 as a security bond on your behalf.
+ What cannot be claimed?
  • Pre-existing condition or disability, unless she has been insured continuously for the last 12 months
  • Occurrence during domestic helper’s home leave or vacation leave
  • Suicide or attempted suicide while sane or insane, self-inflicted injury, pregnancy and childbirth
+ Documents copies needed to apply for maid insurance
  • Employment pass or work permit if you are a foreigner
  • In-principal approval letter or renewal letter from MOM
  • Domestic helper’s passport
  • Witness’ and local guarantor’s NRIC
+ Did you know?
  • MOM requires at least S$15,000 and S$40,000 coverage per year for medical insurance and personal accident insurance respectively.
  • For policy cancellation, there will be a short period premium refund based on the unexpired period of the insurance. However, there is no refund if the policy is over 180 days from the commencement date of the insurance.

  • The following cannot be claimed within the first 14 days from the commencement of the policy:
    • • Dengue Fever under Personal Accident cover
    • • Illness under Hospital and Surgical Expenses cover
    • • Outpatient Kidney Dialysis & Cancer Treatment cover

Mosquito Insurance

Singapore's tropical climate is ideal for the breeding of mosquitos. Continue reading to find out how you can get your expenses covered in the event you're infected with a mosquito borne disease.

What is mosquito insurance?

A mosquito insurance is a coverage against Dengue, Zika, Chikungunya, Yellow fevers, and Malaria.

+ What benefits are there?
  • 100% payout once diagnosed
  • Covers all ages up to 99 years old
  • Covers out-of-pocket expenses
+ Factors affecting premium
  • Area alert level for mosquito-borne diseases
    • • Green has the lowest premium
    • • Yellow has the second lowest premium
    • • Red has the highest premium
+ When can you claim?
  • Upon diagnosis by certified medical practitioner
  • Your first claim can be made after 14 days (waiting period) of the issue date of the policy
  • Subsequent claims can be made after a separation period of 90 days
+ What cannot be claimed?
  • All claims and losses that arose when you were outside of Singapore
  • Pre-existing medical conditions or physical defects
  • Any accidental injury or illness other than the covered disease
  • Any covered disease that is not diagnosed by a doctor
  • Any covered disease diagnosed during the waiting period or separation period
  • Any covered disease announced as an epidemic or pandemic by Singapore’s health authority or government
  • Any covered disease notified as a pandemic by the World Health Organisation (WHO)
+ Did you know?
  • The claim is payable if the illness is reported and diagnosed by a Singapore-registered doctor; which means one can "catch" the illness overseas,but the diagnosis and report must be made back in Singapore by a qualified doctor here.
  • You can still buy this insurance even though you were once a dengue patient

Motor Insurance

The variety of motor insurance in the market can be overwhelming at times. Read on to find out some important points to help you make an informed decision.

What is motor insurance?

A motor insurance provides coverage for any loss the insured party may incur through damage to property or persons as the result of an accident.

+ Types of motor insurance
  • Third party
    • Covers death or injury to other party and damage to their property
  • Third Party, Fire and Theft
    • Includes third party and fire damage to, or theft of, your vehicle
  • Comprehensive
    • Insures both types above and accidental damage to your vehicle
    • Coverage for personal accident and medical expenses (private car only)
+ Factors affecting premiums
  • Make and model of the vehicle
  • Engine capacity
  • Vehicle’s age
  • Driver’s profile (e.g. age, gender and occupation)
  • Driving experience
  • Driver’s claims history
  • Use of vehicle (e.g. private use, corporate use, commercial use)
  • Type of coverage plan
+ What is a policy excess?

An excess (or deductible) is a contribution you are required to pay for a claim you make on your car insurance. The excess amount is different for each policy. One of the most effective ways to save your car insurance costs is to keep your excess high and enjoy lower premiums. However, this also means that when you do make a claim, you will have to pay more towards it. This makes it important to select a level of excess you can afford.

+ What is a named driver?

A named driver is someone who can drive the vehicle with the owner’s permission and is covered by car insurance with the same privileges as the owner. However, multiple named drivers on a policy can cost more because the chances of an accident occurring increases. In the event where an unnamed driver is involved in an accident, the insurer is entitled to impose a higher excess on the claim.

+ No-Claim Discount (NCD)
  • What is a NCD?
  • NCD is a discount entitled to car owners who have not made any claims for a year or more. It reduces the premium paid for the subsequent year. This is the insurer’s way of recognising careful drivers. Therefore, the longer you don’t make any claims, the more discount you will be eligible for.

    Period with No Claims
    Renewal Discount
    Private Car
    Commercial Vehicle & Motorcycle
    1 Year
    10%
    10%
    2 Years
    20%
    15%
    3 Years
    30%
    20%
    4 Years
    40%
    20%
    5 Years
    50%
    20%

  • Does the NCD apply to you or your vehicle?
  • Generally, the NCD applies to you and not your vehicle. When you sell your vehicle and purchase a new vehicle, your NCD is retained. However, if own more than one vehicle, the NCD for each vehicle may differ. Thus, you will have to clarify with your insurer.

    Your NCD can essentially be transferred to another vehicle you own, but it cannot be applied to more than one vehicle at a time. Additionally, your NCD cannot be transferred to another person.

  • Will a break in ownership of your vehicle affect your NCD?
  • Most insurers in Singapore will allow you to retain your NCD for a break in ownership up to 24 months. Some insurers would set the timeframe for 12 months.

  • Will you automatically lose your NCD once you make a claim?
  • Most likely yes. Unless you are found to be totally not at fault for the accident involving an identified vehicle. For claims made under the policy, your NCD will be reduced accordingly.

    Vehicle Type
    Current NCD
    NCD after 1 claim
    Private Car
    50%
    20%
    40%
    10%
    30% and under
    10%
    Commercial Vehicle & Motorcycle
    20% and under
    0%

  • How can you protect your NCD?
  • If you accumulate an NCD of 50% (i.e. 5 years or more without any claim), most insurers would typically offer you to buy an NCD protection against the loss of the discount. By paying a small extra premium, you can make one claim within a year and still have your NCD.

    For a 50% NCD protection,

    Claims within the Insurance Period
    Renewal NCD
    1
    50%
    2
    20%
    3 or more
    none
+ What to do if a car accident happens?
  • Move your vehicle to a safe area if possible
  • Check the involved party
  • Exchange information with those involved such as name, NRIC, contact number, address and insurer
  • Take note of vehicle number
  • Take pictures of the accident scene
    • Vehicles caught in the accident and the surrounding areas
    • Capture images of yours and the other party’s vehicle damages with license plate if possible
    • For multiple vehicle collision, take pictures of those with direct contact i.e. immediate front and rear vehicles

  • Call your insurer’s hotline for a tow truck or for further advice
  • Report and bring your vehicle to the approved reporting centre or authorised workshop within 24 hours or by the next working day
+ Did you know?

According to Aviva Singapore,

  • Red license plate cars are not charged higher premiums
  • Most car insurance policies cover you in West Coast Malaysia and parts of Thailand
  • Not all car insurance policies are the same; the terms and coverage amount differ significantly for each insurer
  • For different insurers, your NCD may or may not be affected even if the accident is not your fault. You will need to check the terms of coverage in your policy.
  • Comprehensive coverage does not always cover everyone that drives your car. Some policies may cover unnamed drivers to a limit (e.g. age and driving experience) and can impose an additional excess if the unnamed driver does not meet the requirements.
  • Males are 1.4 times more likely to get into an accident than females
  • 41% of accidents is the front-to-rear collision
  • 23% of accidents occurred along expressways
  • 15% of accidents involved front-to-side collisions
  • 13% of accidents occurred at junctions
  • 13% of accidents are chain collisions
  • 12% report an accident from a side swipe (typically happening when two cars are both making a turn)
  • 12% of accidents occurred before the car left the carpark
  • 7% report an accident that occurred while the driver was reversing
  • Almost 50% of all car accidents on Fridays happen on the way home between 5:30 pm to 8 pm

Top 10 accident hotspots

  • Alexandra Road
  • Balestier Road
  • Braddell Road
  • Bukit Timah Road
  • Clementi Road
  • Dunearn Road
  • Lornie Road
  • Thomson Road
  • Upper Serangoon Road
  • Upper Thomson Road
  • Yio Chu Kang Road

Life Insurance

Provide your loved ones with financial security after you pass on. The policies are highly customised to each policyholder, but here are some important details to look out for when purchasing a life insurance.

What is life insurance?

A life insurance provides financial security for your family after you die. Upon death, the insurance provider pays a predetermined sum of money either to you or your select beneficiaries.

+ Factors affecting premium
  • Your current age
  • Gender
  • Smoking preference
  • Personal and family medical history
  • Lifestyle
  • Death benefit
+ What is a death benefit?

The death benefit is the amount of money your beneficiaries will receive from the insurer upon death. This amount is determined by you, but the insurer will determine if there is an insurable interest and if you can qualify for the coverage based on the underwritings requirements.

+ Whole Life policy vs Term policy

The premium amount for whole life policies is more expensive as the coverage lasts a lifetime and it includes the cost of insurance and cash values. However, your beneficiaries are guaranteed a payout no matter when you die.

Whereas, term policies provide a stated benefit upon your death, provided that the death occurs within a specific time period. A term policy is usually cheaper because it is temporary and do not accumulate cash value and thus, premiums are for the cost of insurance only.

+ Why buy life insurance?

A life insurance can:

  • Fulfil your family’s financial requirements
  • Payoff loan and other expenses
  • Pay for illnesses and accidents
  • Offer tax benefits
+ How much coverage should you get?

Before buying a life insurance, you should consider your financial requirements, the standard of living your family want to maintain. It depends on the amount of risk you would like to cover. As a rough estimate, you can multiply your current annual income by 10 to gauge the coverage amount needed.

  • Number of dependents (or survivors)
    • The more dependents you have, the higher the life insurance payout will have to be, to take care of them after you're gone.
  • Current and future lifestyle expenses
    • Calculate your expenses and get a life insurance policy with a matching payout.
  • Outstanding liabilities (e.g. mortgage loan, car loan)
    • Arrange to clear your debts, or to have an insurance payout large enough to clear it for you.
  • Investments and savings
    • Depending on the amount of investments and savings you have, you can opt for a policy with higher payout and consequently higher premiums or lower payout and lower premiums.

Health Insurance

The last thing we want to worry about when we're ill, is the medical bill. Get health insurance so you can focus on getting better and allow the insurer to take care of the bill (mostly). Continue reading to learn about health insurance coverage as well as it's exclusions.

What is health insurance?

A health insurance covers both you and your family with financial benefits that can help you partially or fully recover incurred costs as a result of an accident, illness, or disability. In other words, it removes the burden of an expensive medical bill for you and your family.

+ What should you look out for?
  • Deductibles and co-insurance (applicable for medical expenses insurance plans only)
    • • A deductible is an initial amount you pay for the claim/s made in a policy year before any policy benefits are paid out.
    • • A co-insurance is the co-pay or share amount you pay for after deducting the deductible.
  • Waiting periods and deferred periods
    • • A waiting period is a period which benefits will not be paid if an event occurs during the start of the policy.
    • • A ‘deferred period’ means you may claim for benefits after you have been disabled or sick for more than a certain number of days.
  • Age limit
    • • MediShield Life and some health insurance policies cover you for life and there is no age limit. However, private insurance plans may have an age limit and may not be available once you reach a certain age.
  • Premiums
    • • Single premium plan: Premium is paid once at the start of your cover
    • Regular premium plan: Premium is paid regularly throughout the life of the policy
      • The premium amount required may change as you age. This change will be stated in the policy.
  • Worldwide coverage
    • • Some health insurance policies have ‘geographic limits’ so treatment provided outside those limits will not be covered.For overseas treatment, some policies will only pay up to the amount that would be charged in Singapore, if that treatment is available locally.
  • Policy exclusions
    • • All health insurance policies contain some sort of exclusions. Exclusions are conditions or circumstances where you are not covered by your policy. Most private health insurance policies exclude coverage of pre-existing medical conditions.
  • Private health insurance policy may end when:
    • You attain the maximum age stated in your policy
    • You have received the maximum benefits that can be paid under the policy
+ Why do you need an Integrated Shield Plan?

The reason is because MediShield Life only offers a basic coverage such as a subsidised hospital bill and a few major outpatient treatments like cancer. Moreover, the patient can only choose a C class or B2 class ward in a public hospital. Whilst, the Integrated Shield Plan is a complement to the MediShield Life which provides additional coverage that is further elaborated below.

+ Types of Health Insurance
IF YOU WANT TO...
YOU SHOULD CONSIDER...
Have your medical expenses paid
Medical expense insurance, e.g. MediShield and Integrated Shield Plan
Receive a fixed amount of cash when you are hospitalized
Hospital cash insurance
Reduce your financial burden when you are diagnosed with a major illness such as cancer
Critical illness insurance
Replace your income when you are unable to work
Disability income insurance
Pay the cost of care needed when you are too weak to look after yourself
Long-term care insurance, e.g. ElderShield and ElderShield Supplements

+ Medical expense insurance

A medical expense insurance provides payment for medical expenses incurred from an accident or illness. For example, MediShield is a type of medical expense insurance.

  • Types of medical expense covered
    • Surgery
    • X-rays
    • Lab Tests
    • Specialist Consultations
    • In-patient Medical Treatment
  • You should know that:
    • • The policy is not fully comprehensive in covering all medical expenses
    • • There is a policy limit on the amount of claim for each illness or disability
    • • Pre-existing conditions may be excluded
    • • Certain illness or medical conditions such as biopsies may not be covered
    • • There is a waiting period
    • • Expenses will not be paid unless it is related to accidental injuries
    • • Co-insurance and deductible can make premium affordable but it could mean that you would need to pay more for your medical expenses
+ Hospital cash insurance

A hospital cash insurance pays a fixed sum of money for each day that you’re hospitalised for medical treatment or surgery. The total amount paid under the policy may be more or less than your actual expenses.

  • You should know that:
    • • There is a waiting period
    • • The fixed sum of money is paid only after you have been hospitalized for more than a set number of days
    • • Only a limited number of days can be claimed as the fixed sum of money is paid for only a set number of days each year or the life of the policy
+ Critical illness insurance

A critical illness insurance pays you a lump sum if you are diagnosed with a critical illness or undergo a type of surgery listed in the policy. This can be bought on its own or can come as a rider in your life insurance policy.

  • Types of critical illnesses covered
    • Major Cancers
    • Coma
    • Kidney Failures
    • Heart Attack
    • Stroke
  • You should know that:
    • • There is a waiting period for certain critical illnesses and no benefits will be paid if any disease or surgery is diagnosed or carried out during this period.
    • • Benefits are paid only if the definition of disease or surgery meets the policy exactly. (Definitions of diseases are fixed across all Singapore insurance companies. Refer to: Life Insurance Association and General Insurance Association of Singapore)
+ Disability income insurance

A disability income insurance provides you with a fixed monthly payment in the event you become disabled due to an accident or illness. These policies can help to ease your financial burden but will not pay more than 80% of your average monthly salary. For example, ElderShield is a type of disability income insurance.

  • You should know that:
    • • The insurance may have a waiting period which benefits will not be paid.
    • • The payment of benefits will only start to pay if you are disabled continuously for longer than the waiting period. It will be paid for up to 5 or 10 years or until the age of 60 or 65.
    • • The payment will stop once you are able to work again or it may also be reduced accordingly to any recovery you make.
    • • The definition of disability used for each insurer might differ. For instance, some insurers may define disability for not being able to perform your work as required by your profession, while others define it as not being able to work for any job.
+ Long-term care insurance

A long-term care insurance provides you with a fixed monthly sum of money for your long-term nursing treatment. Benefits are paid only when you are unable to perform some ‘activities of daily living’.

  • Activities include:
    • • Dressing
    • • Bathing
    • • Feeding
    • • Going to toilet
    • • Moving around
  • You should know that:
    • • The payment will stop once the total number of activities that cannot be performed fall below the minimum stipulated in the policy.
    • • There is waiting period.
    • • The payment will begin once you are unable to perform the minimum number of activities for at least a period.
+ What should you do before admitting into a hospital?

Since healthcare costs are mostly based on the type of hospital (private or public) and ward you choose before you admit into a hospital, you should check:

  • The charges of your ward and the costs of medical treatment suggested by your doctor.
  • Your entitlement for the ward class you can stay in under your health insurance plan and the total costs your health insurance policy will cover.
  • What options are offered to you and that you can afford the selected ward or treatment.
  • If your insurer can issue a letter of guarantee (LOG) to you. The LOG is an assurance of payment to hospitals for the portion of the hospital bill covered by insurance.
+ Did you know?

If your policy ends because you have failed to pay your premiums, you can apply to your insurer to provide cover again. Your insurer will review your age and health for the new cover. You may have to pay a higher premium or have extra or new conditions attached to the policy. Insurers can also refuse to cover you again.

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