what is insurance
Insurance is a common topic today, as the risks in life should never be overlooked. Everybody needs insurance because of the existence of various kinds of risks in day-to-day life. You could easily suffer a financial loss as a result of fire, bad weather, a car accident, the burglary in your house or a thousand other factors. Risk is present in every aspect of our lives whether you are sitting at home, walking on the road or driving a car. Insurance can do nothing to prevent these things happening but what it can do is to transfer some or all of the financial implications from the insured (policy owner) to the insurer (insurance company). Insurance can offer protection against the financial consequences of risks because it pools the resources of a large number of people (the insurance premiums) in order to pay for the losses of a few.
In fact, in many ways, insurance and gambling operate on the same principles. You are risking a little money upfront in the expectation that you may need a large payoff at some time in the future. The major difference is that gamblers are seeking risk in a quest for more money while you are paying a small sum to reduce your risk. Gambling casinos and insurance companies alike work on the statistical principle called the Law of Large Numbers. The law says that the more you have of something, the more the characteristics of what you have to tend to average. In other words, the more people who spin the roulette wheel or throw the dice at the casino, the more accurately the losses and gains can be predicted. The more the people in a particular kind of insurance coverage, the more accurately the insurance company can predict its gains and losses and set its premiums
insurance singapore
accordingly.
The premium that each member of a pool of policyholders has to pay is determined by a number of factors. For instance, a major factor in the determination of the premium for life and health insurance is age. The statistical data shows that younger people are likely to make fewer claims than people who are older and therefore pay lower premiums. In the case of term insurance, the factors determining the premium are age, gender location and driving history. The statistics show that younger people tend to be involved in more accidents than older people and therefore have to pay a higher premium.
Let us take an example that illustrates these principles of insurance. If 100,000 people pay $1000 each for medical insurance, the insurance company will receive $100 million in premiums. If they have to pay 5000 people $10,000 each, they would have paid out $50 million from the pool and still have $50 million left over for future claims.
It follows that for an insurance company to trade profitably and viably, these are the prerequisites:
- A large pool of insurance policy holders who have very diverse demographics (age, gender, occupation, location and so on)
- A reliable database of statistics and historical data about the likelihood of having to pay out for losses on each type of cover
- Premiums set in such a fashion that losses are covered with a reasonable surplus left over.
Today, insurance covers almost everything, from life to property, from health to accident.
Insurance In Singapore
The most common insurance in Singapore are:
- Disability Insurance
- General Insurance
- Health Medical Insurance
- Investment Linked Insurance
- Life Insurance
- Mortgage Insurance
- Personal Accident Insurance
- Savings Insurance Plan
- Term Insurance
At www.sginsurance.net, we will also be answering frequent asked questions on
- How insurance works?
- What is insurance policy?
- What is insurance quote?
- What is insurance rider?
- What is the role of an insurance agent?
- What is the role of insurance brokers?
- What you need to know about insurance?
- When should I start to buy insurance?
- Who are the insurance companies in Singapore?
- Why is insurance so important?
Tags: Insurance > insurance online > Insurance Singapore > online insurance > singapore insurance
Who are the insurance companies in Singapore
| Insurance Companies | Contact Number |
| A&A Life Planners | 63376575 |
| AB Lim & Sons Enterprises | 62722277 |
| Abdul Wahab b Mohd Mattar | 62732116 |
| Able Insurance Brokers Pte Ltd | 67474333 |
| Abundant Life Planners Pte Ltd | 62728563 |
| Acclaim Insurance Brokers Pte Ltd | 62242455 |
| Ace Insurance Ltd | 62988955 |
| Actimek (S) Pte Ltd | 63583136 |
| Activate Life Planning Services Pte Ltd | 63342008 |
| Adrian Chong & Associates | 62769916 |
| Affinity Planners | 63233108 |
| Agatha Yeo & Associates | 63458966 |
| Agent Boustead Services Pte Ltd | 67436080 |
| Agnes Lim & Associates Pte Ltd | 62763011 |
| Aik Chong Insurance Agency | 63361811 |
| AIU (S) Pte Ltd | 62256411 |
| Albert Tan & Associates Agency Pte Ltd | 63442508 |
| Alexandra & Alexandra (Asia) Holdings Pte Ltd | 65367824 |
| Alexandra Forbes (S) Pte Ltd | 62211288 |
| Alfa-Mega Associates Pte Ltd | 62753336 |
| Allianz AG | 62978801 |
| Allink Insurancs Agency | 65674722 |
| Allrisks Insurance Reinsurance Brokers Pte Ltd | 62210713 |
| Alrisk Agency Pte Ltd | 63487751 |
| American Home Assurance Co | 63225000 |
| American International Assurance Co Ltd | 1800-2996888 |
| American International Group, Inc | 63225000 |
| Anda Insurance Agencies Pte Ltd | 65342288 |
| Anthony Fong & Associates Pte Ltd | 62767383 |
| Aon Insurance Agencies Pte Ltd | 64381407 |
| Apex Life Planning Services | 67475856 |
| Arthur Boo Insurance Agency | 67328002 |
| Asia Insurance Co Ltd | 62243181 |
| AXA Insurance Singapore Pte Ltd | 1800-8804741 |
| AXA Life Insurance (S) Pte Ltd | 1800-3254462 |
| Bestlink Agency | 67887408 |
| BMC Insurance Brokers Pte Ltd | 62249604 |
| Bobby Boon Agencies Pte Ltd | 62728300 |
| Bock Tong Chin David | 67351230 |
| Bond Enterprises | 65369808 |
| Boustead Services Pte Ltd | 67436080 |
| Bradstock Suntek Insurance Brokers Pte Ltd | 62245211 |
| Breakthrought Agency Pte Ltd | 62755088 |
| Brian Mae Pte Ltd | 62243683 |
| Bridge Associates Pte Ltd | 62730515 |
| Britam Insurance Brokers Pte Ltd | 62214802 |
| Business & Career Re-Organisation Pte Ltd | 62727801 |
| C & M Associates | 67487357 |
| C G Insurance Agency | 62876797 |
| Capital Insurance Agency Pte Ltd | 65369982 |
| Career Enrichment Pte Ltd | 68423088 |
| Central Reinsurance Corpn | 62203613 |
| CF Associated Agencies | 67441575 |
| CGU Asia Pte Ltd | 65368211 |
| CGU International Insurance Plc | 62271181 |
| Charles Loh Agency Pte Ltd | 62201080 |
| Charles Taylor Mutual Management (Asia) Pte Ltd | 62211060 |
| Chessa Marketing & Services | 68484164 |
| Chiam Hock Leong Insurance Agency | 67323887 |
| Chicago Associates | 63447777 |
| Chicago Credit Pte Ltd | 63489909 |
| China Insurance Co Ltd | 62222366 |
| Chiyoda Fire & Marine Insurance Co Ltd | 62246759 |
| Chng Service Agency | 63363395 |
| Chuan Ee Enterprise | 62970538 |
| Chuan Huat (Pte) Ltd | 62963833 |
| Chubb Pacific Underwriting Management Services Pte | 63336369 |
| Chubb Pacific Underwriting Management Services Pte | 63336538 |
| Citystate Management Group Holdings Pte Ltd | 63236916 |
| Citystate Management Group Holdings Pte Ltd | 62246435 |
| CNA International | 67359631 |
| CNA Reinsurance Co Ltd | 63236007 |
| Cogent Reinsurance Brokers Asia Pte Ltd | 65387818 |
| Cologne Reinsurance Co Pte Ltd | 64387990 |
| Community Insurance Agency | 64405941 |
| Conrad & Sons Services Pte Ltd | 67382040 |
| Convenient Insurance Agency | 67491761 |
| Cosmic Insurance Corpn Ltd | 63387633 |
| Coverage Concepts | 67486226 |
| Cowell Marketing & Insurance Agency | 63392592 |
| Credit Insurance Assn (S) Pte Ltd | 64681004 |
| Credit Success Corpn | 62212036 |
| Crestmar Insurance Agencies Pte Ltd | 62209690 |
| CTS Associates Pte Ltd | 62766120 |
| D I Insurance Agency | 67431220 |
| Daglen Insurance Agency | 68370010 |
| Dai-Lchi Life International (S) Pte Ltd | 65320780 |
| Daniel Yow & Associates | 63485772 |
| Danny Lim Kim Hua Insurance Agency | 67625225/ 68916198 |
| Danny Teo Agencies | 62214779 |
| Darien Investment Life Pte Ltd | 62769311 |
| Darren Tan & Associates | 62230778 |
| Daverie Agency Pte Ltd | 62872718 |
| David Ong & Co Pte Ltd | 63460392 |
| David Pak Agencies (Pte) Ltd | 64404201 |
| David Wong Management Services | 62788836 |
| Dennis Associates Insurance Brokers Pte Ltd | 62242722 |
| Distinctive Agency | 67855655 |
| DL Dains & Associates | 68414384 |
| Dowa Fire & Marine Insurance Co Pte Ltd | 62209881 |
| DTA Risk & Resource Management Pte Ltd | 63340828 |
| Duncanson & Holt Asia Pte Ltd | 62275587 |
| Dynamic Insurance Agency | 68418575 |
| Dyxlar (S) Pte Ltd | 62272209 |
| E & L Business Auto | 63442218 |
| E C Orient Enterprise | 68814757 |
| E Tay Trading Co | 62946996 |
| Eastern Insurance Agency Pte Ltd | 65385366 |
| Eastern United S & W Agency | 62922281 |
| Ecics Credit Insurance Ltd | 63374779 |
| Elpis Associates Pte Ltd | 62274244 |
| Eminence Agency Pte Ltd | 62762042 |
| Enteey Enterprise Pte Ltd | 62356066 |
| Equatorial Associates & Co (S) Pte Ltd | 64813105 |
| Equatorial Reinsurance (S) Ltd | 62239433 |
| Equitable Pte Ltd | 62769238 |
| Equity Insurance Agencies Pte Ltd | 62206471 |
| Essential Link | 63230318 |
| Eternity Agency | 62763747 |
| ETS Insurancs Agency | 62478664 |
| Ever-Gro Insurance Agency | 64416282 |
| Everest Reinsurance Co | 65351121 |
| Evervit Trading (Pte) Ltd | 62923000 |
| EW Blanch Pte Ltd | 62219363 |
| Fairbilt International Pte Ltd | 62922280 |
| Far Eastern Insurance Agency | 67487458 |
| Federal Insurance Co | 63338113 |
| Federal Insurance Company | 63338113 |
| Fenella Tang & Associates Pte Ltd | 62706508 |
| Finanical Security Assurance Inc | 63336968 |
| Fine-Service Agency Pte Ltd | 62992288 |
| First Capital Insurance Ltd | 62222311 |
| First Principal Financial Planning Pte Ltd | 62205333 |
| First United Services Pte Ltd | 62734578 |
| FM Insurance Co Ltd | 62505588 |
| Folksam International Insurance Co Ltd | 62262622 |
| Francis Associates Pte Ltd | 62933501 |
| Francis Chiam & Associates | 68429060 |
| Galaxy Underwriting Agency Pte Ltd | 62228737 |
| Gamini Associates Agency Pte Ltd | 63346379 |
| General & Auto Underwriting Agencies Pte Ltd | 62226677 |
| General & Marine Brokers Pte Ltd | 62209266 |
| General Link Agency | 68732345 |
| Genfield Insurance Agency | 64491012 |
| Genlife Insurance Agency (S) Pte Ltd | 62238808 |
| Gideon Insurance Agencies Pte Ltd | 62277133 |
| Gim’s Insurance Agency Pte Ltd | 62529022 |
| Gin Huat Chuan Enterprise | 62925502 |
| Goh Peng Leong Agency | 62953382 |
| Golden Prime Insurance Agency | 65454450 |
| Goodyear General Insurance Agency | 62930228 |
| Grand Enterprises & Partners | 67471145 |
| Grandiose Factors Pte Ltd | 62877537 |
| Great City Insurance Agencies (1973) Pte Ltd | 62985505 |
| Great City Insurance Brokers (1978) Pte Ltd | 62969342 |
| Great Eastern Life | 1800-2482888 |
| H Team (Insurance Broker) Pte Ltd | 63394444 |
| Haffina Reinsurance Pte Ltd | 64383318 |
| Haipa International | 62972038 |
| Hamswood Insurance Agencies Pte Ltd | 63394298 |
| Han Seng Kheng | 67333276 |
| Harsons Agencies | 63386426 |
| Harvest Insurance Agencies Pte Ltd | 63386288 |
| Hegbon Enterprises Pte Ltd | 64689171 |
| High Gate & Associates | 65369885 |
| Hiramoti | 63381620 |
| HKG Insurance Agencies Pte Ltd | 64572232 |
| Hoh Keow Teng Insurance Agency | 65642971 |
| Holm Agencies Pte Ltd | 67379928 |
| Hong Enterprise Pte Ltd | 65363077 |
| HSBC Gibbs S’pore Pte Ltd | 65355766 |
| HSBC Insurance Ltd | 65380880 |
| Hua Lian Agencies Pte Ltd | 65612722 |
| Hup Heng Lee Enterprise | 62844180 |
| Hup Teck Agency | 62888396 |
| HYD Power Insurance Agency Pte Ltd | 62922957 |
| In Agency Services | 64496608 |
| India International Insurance Pte Ltd | 62238122 |
| Infinity Auto | 63444108 |
| ING Gerenal Insurance International N V | 65323034 |
| Ins-Rate Agency | 62842229 |
| Insco Marketing | 62230323 |
| Inscope Agency Pte Ltd | 64472281 |
| Insline Insurance Agency | 62222180 |
| Inslink Agency | 62833982 |
| Insmart (Insurance) Agency Pte Ltd | 68420766 |
| Inspacific International (Pte) Ltd | 62239069 |
| Inspro Insurance Brokers Pte Ltd | 65383883 |
| Insuance Matters Agency Pte Ltd | 62366800 |
| Insurance Corpn Of S’pore Ltd | 62218686 |
| Insurcom Enterprise | 67937332 |
| Insurcom II | 67919167 |
| Insure Shop Insurance Agency Pte Ltd | 65522133 |
| Insureasia Agency | 65334002 |
| Insuremaster Agency | 63580921 |
| Insurite Pte Ltd | 63363188 |
| Insurworld Agency | 63457846 |
| Inter Partner Assistance | 62351531 |
| International Broking Services Pte Ltd | 62558133 |
| International Insurance Brokers & Consultant Pte L | 62967511 |
| International Testing Co Pte Ltd | 67552838 |
| Ipp Capital Advisory Pte Ltd | 67331533 |
| ISB Asia/Pacific Pte Ltd | 67323358 |
| Ivan Insurance Agency | 64400220 |
| J B Boda & Co (S) Pte Ltd | 62240977 |
| James Tan Associates | 63444449 |
| Japco Insurance Agency | 63565330 |
| Jardine Lloyd Thompson Asia Pte Ltd | 63336311 |
| Jardine Thompson Graham Asia Pte Ltd | 63336006 |
| JC Planners Pte Ltd | 62734843 |
| JC TeamFusion Agency | 62761769 |
| Jet Agency Pte Ltd | 63333020 |
| Jeyeraman Parasuraman | 62763613 |
| JG Motor Agency | 67479015 |
| Jimmy Hong Agency Pte Ltd | 62765737 |
| Jimmy Tan Insurance Agency Pte Ltd | 63236431 |
| Jin Loy Enterprises Co | 62258235 |
| Jin-Shi Enterprise Pte Ltd | 64678380 |
| JL Assurance Agency | 67417235 |
| JL Low Insurance Agencies | 63365392 |
| John Hancock Life Assurance Co Ltd | 65383333 |
| Jordan Huebner (Asia) Pte Ltd | 63379066 |
| JP Alpha Agency | 64840461 |
| K&L Services Agencies | 62225806 |
| Kemper International Insurance Company Pte Ltd | 68369120 |
| Mitsui Marine & Fire Insurance (Asia) Pte Ltd | 63373133 |
| NTUC Income | 63363322 |
| Oversea Union Insurance Limited | 62251133 |
| Prudential Assurance Company Singapore Pte Ltd | 1800-3330333 |
Tags: Insurance > insurance companies > insurance online > Insurance Singapore > online insurance > singapore insurance
Why is insurance so important
Many people do not give much thought to insurance, which is a pity. They are under the firm conviction that bad things happen only to other people and they will go through life untouched by any problems. Some of them even regard the payment of insurance premiums as a waste of money. It is only when that one in a million event happens (such as an accident or a fire in the house) that they realize, too late and the hard way, the value of insurance. It is entirely possible that you may go through life without needing any form of insurance but are you prepared to take the one in a million chance that may wipe you out financially? Why should you take the risk on yourself when, for the payment of a small and affordable premium, you can transfer the risk to the insurer?
Any of the following could happen to you. You are driving along in your brand new car when another car collides with your car and injures you badly. Medical insurance can pay your hospital bills (which would otherwise be cripplingly expensive). Auto insurance can pay for the damage to your car or buy you a new car. If you are disabled partially or completely as a result of the accident, disability insurance can protect your income. Can you imagine your plight if you are carrying no insurance? Let us take the worst-case scenario and assume you are killed in the accident. You are the sole breadwinner and your wife and children are entirely dependent on you. Without insurance protection, how will they survive on a day-to-day basis and who will pay for the education of your children?
You could spend a lot of money and effort in putting together nice things for the house such as the giant plasma TV, computers and home entertainment equipment and attractive furniture and carpets. One day you come home to find that your house burned to the ground and all your precious belongings turned into ashes. Without insurance, would you be able to face the prospect of rebuilding the entire contents of your house and your house itself from scratch?
Should you take out insurance for yourself and your belongings and for the protection of your family? This is a real no-brainer and the answer is obviously yes. Is insurance expensive? It depends on how you view it but paying a reasonable sum of money for a reasonable amount of protection may be one of the best deals you will ever strike in your life. You should be comforted by the fact that the insurance is going to be there when you really need it. Start by considering insurance for yourself. Get life insurance to protect your family in case something happens to you as well as disability insurance to protect your income in case you are unable to work because of any disability. Get proper medical insurance to take care of those medical bills and expenses. Next consider insurance for all those beautiful things that you own such as your car and the contents of your house. If anything happens to them, the insurance payout will enable you to replace them. Finally, remember the old saying “better safe than sorry”.
Tags: Insurance > insurance online > Insurance Singapore > online insurance > singapore insurance
When should I start to buy insurance
This is a difficult question to answer especially when you consider the sheer range and variety of insurance cover that is available for various needs. These needs will arise at different points in your life and may also vary from time to time so that a decision on every need will have to be examined in detail and on its own merits. For instance, if you buy a car, you will need to take out some form of car insurance before you can take it out on the road because this is the requirement in law. You can go beyond the basic insurance to take out whatever form of cover you think you can afford such as comprehensive insurance to cover the cost of repairs and spare parts. In the case of life insurance, you should aim to cover yourself as soon as you have a family for whom you need financial protection should something happen to you. You may simultaneously wish to take out accident and disability insurance to cover medical expenses in case of an accident and to protect your income in case you are partly or fully disabled.
In the case of accident insurance or disability insurance, many young people believe that they do not need the cover because nothing is going to happen to them. Yet, even if they carry adequate medical insurance, disability insurance give some income protection at a time when their savings may not be adequate enough to compensate. The time to take out this insurance is as early as you can as is the case for health insurance because the younger and healthier you are, the lower the premiums that you will pay. When you have accumulated a few nice things in the house, such as a computer or a fancy TV set, you should contemplate insuring them so that if something should happen, you do not have to replace them from your own pocket.
Let us consider long-term-care insurance protection in order to help you to understand what is involved. In long-term care insurance, you should first establish what assets you possess because they will need to be liquidated to afford the long-term-care expenses if you are not properly insured. If your assets are in the region of $2 million, you probably have enough money to do without long-term care insurance. If your assets are less than $200,000, the premiums that you can ill afford to pay better utilized for your day-to-day living expenses. You will of course have to pay for long-term care should you require it out of your pocket till you become eligible for Medicare. However, if your assets are between $200,000 and $2 million, you should seriously consider long-term care insurance in order to protect your assets.
If you take all these factors into account, you should start to look seriously at the possibilities of buying long-term care when you are in your early 50s. You should evaluate your overall health and lifestyle to assess the risks that you are running which may require long-term care. You should also evaluate your financial position and the likely income that you will earn till you retire.
Tags: Insurance > insurance online > Insurance Singapore > online insurance > singapore insurance
What you need to know about insurance
In its most basic form, insurance means protection for you against financial losses because of the happening of some event in the future. It is obtained by paying somebody to take on the risk on your behalf. The person or company taking on the risk is called the insurer, you are called the insured and the payment that you make is called a premium. The contract between the insured and the insurer is called an insurance policy and in return for the insured paying a specified amount as a premium, the insurer agrees to compensate for financial losses on the happening of the event covered by the policy (for instance, in a fire insurance policy, the insurer will make good damages caused by fire). The insured will pay out on your making an insurance claim.
You can buy insurance risk coverage for a number of risks and some examples of insurance that is available are life insurance, health insurance, mortgage insurance and so on. It is up to the insured to select the risk for which he or she desires coverage. Put another way, life insurance will cover the risk of your death, health insurance will cover your medical bills if you become ill and require attention or hospitalization and car or auto insurance will cover damage to your car as well as to third parties in the event of a car accident.
You may feel that because you have never had to make a claim on your insurance, you are wasting your money when you write that premium check month after month. This is not really the truth because you are protecting your assets or yourself from a financial loss that could wipe you out in return for a small fixed payment of a premium. Apart from the peace of mind that this will provide, insurance coverage is mandatory in many cases would either because of the law (as in auto insurance) or because of your banker (as in the risk coverage that may be required for you to obtain a mortgage).
When you purchase insurance coverage of any kind from an insurer, certain important legal considerations have to be clearly understood:
- Contract of indemnity – The insurer will reimburse (indemnify) the insured if certain losses incurred up to the extent of interest of the insured.
- Insurable interest – The insurance coverage will be valid only if the insured has an insurable interest which means that he will directly suffer the loss. For instance, in property insurance, the insured must have a direct interest in the property.
- Contract of utmost good faith – An insurance contract is a contract of utmost good faith where the insured must be care every material detail to the insurer. Failure to do so (for example failure to disclose a pre-existing medical condition in health insurance) can invalidate the coverage.
You must not assume that every type of risk is automatically covered because you have purchased the appropriate coverage from the insurer. Insurers can protect themselves in several ways such as a deductible, which requires you to bear the first loss up to a predetermined value. You could also have an exclusion in which a peril is totally excluded from the policy (for instance, almost all property insurance policies exclude coverage of damage caused by war). You should therefore read the small print of the policy to determine the exact extent of your coverage.
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What is the role of insurance brokers
An insurance broker is the middlemen between the insurance company and the customer and markets insurance policies on behalf of the insurer. He is a professional who is required to give priority to his clients and provide objective advice that should not be influenced by any insurance company. In this way, he functions in a manner that is similar to your lawyer or your accountant and the advice that he provides is based on years of training, professional knowledge and experience. Insurance can be quite complicated and, like so many other things in life, the cheapest insurance is not necessarily the best insurance at or the insurance that suits your particular requirements. In deciding on your insurance and your insurer, you have to take into account a number of factors such as the exact wording of the policy, the exact nature of cover and the standing of the insurance company. Because an insurance broker deals with several different insurance companies, he is completely familiar with the different kinds of wording and the different kinds of cover. You can expect professional and impartial advice on what is best for you and indeed whether you should consider self insurance or non-traditional insurance products. Naturally, he will get you the best possible deal within the limitations of your budget.
In many parts of the world, insurance broking is connected with general insurance (also called non life insurance) and you would normally use an insurance broker such as house or car insurance though brokers also operate in the field of life insurance and investment insurance. Insurance brokerage is generally regulated and brokers need to be licensed or accredited in many parts of the world which means that small outfits can compete on level terms with the larger ones. Research has shown that insurance brokers offer substantial help in property and casualty insurance as well as the provision of health insurance and especially for small companies or businesses who lack the professional skills. Though this is a highly technical point, the difference between an insurance broker and an insurance agent is that the agent is an agent of the principal who is the insurance company and many people argue that the primary responsibility of the agent is to the insurance company and not to the buyer of insurance.
On the other hand, the insurance broker has no specific allegiances to any particular insurance companies and it can be argued that this helps him to play a more professional role in the buying of insurance. Since the broker is ultimately paid by the insurance company, he has to strike a delicate and difficult balancing act between loyalties to his insurance buyer band to the insurance company who compensates him. However, the advances in technology and the competitive nature of the business means that the insurance broker is evolving into a true facilitator and, in the process, acts as the catalyst for establishing fruitful relationship with between himself , the insurance company and the insurance buyer. In earlier decades, the customer was often taken for granted but today he is the centre of attention for both the insurer and the insurance broker.
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What is the role of an insurance agent
An insurance agent plays a very important role in the marketing and selling of insurance policies to potential customers. The insurance agent can be regarded as the public face of the insurance company and represents the insurance company as far as the customer is concerned. In most countries in the world, the majority of policies are sold by insurance agents and, in many of these countries; the insurance agent has to be properly qualified and accredited.
The primary role of the insurance agent is to help you to choose the appropriate policy for your needs. Because there are all kinds of insurance policies available ranging from life insurance to mortgage insurance and so on, the agent attempts to get a detailed knowledge of your needs and furnish you with detailed explanations of the type of insurance that is available and what it will cost. In other words, the good insurance agent will help you to find the most cost-effective solution to your insurance needs.
Here are some of the functions that the insurance agent will perform:
- Provide you with the necessary application forms and guide you on how to complete them. This is extremely important as all insurance contracts are what are called “contracts of the utmost good faith” and if, by any chance, you supply misleading or false information to the insurer in your application, the insurer has the right to cancel your coverage.
- Submit your forms to the insurance company and follow up till the policy has been issued.
- Help you to complete the formalities associated with the insurance cover such as the necessary medical tests and examinations.
- Provide you with reminders when your premium payments fall due to overlook or any reasons.
- Generally assisting with the management of your insurance policies including handling items like change of address and loan applications.
As an example, just take a more detailed look at how an insurance agent operating in the field of health insurance functions. He will make sure that he has a detailed and up-to-date knowledge of the latest developments in the industry as well as the latest products that are available. Since he will often represent several insurers, he will be in a position to offer you a wide range of alternatives and coverage options. He will also provide you with expert guidance that is tailored to your particular needs so that you can choose the most cost-effective and appropriate coverage. Their primary allegiance will be to their customer and not to the insurer which means that you will get the best unbiased professional advice on what is good for you.
You can expect the following services from a good insurance agent:
- A professional evaluation of your particular personal health needs.
- A detailed presentation of the plans that are available and the comparative costs.
- Specific recommendations on the plan that best suits you and your budget.
- Review of your plan from time to time and recommendations on minor adjustments if they are necessary.
- Assistance in dealing with insurers for claims, doctors, hospitals and so on.
Tags: Insurance > insurance agent > insurance online > Insurance Singapore > online insurance > singapore insurance
What is insurance rider
An insurance rider is an amendment to the terms and conditions of coverage under standard insurance contracts. Though a rider is normally used to increase the scope and value of cover, it is also occasionally used to reduce the cover. For instance, if you are buying a life insurance policy and cannot afford the standard premiums, you can request an insurance rider to the policy that will reduce the value of the cover and therefore reduce your premiums. Before requesting a rider, you should carefully check the terms and conditions of the standard policy and ask for an explanation of anything that you do not fully understand. You should also ensure that the rider that your request does not duplicate any terms and conditions of the standard policy otherwise you would just be wasting your money. If your needs require an enhancement to the standard insurance policy, make sure that the standard policy together with the rider fulfills all your requirements.
You should always bear in mind that a rider is merely an addition or a supplement to the standard insurance policy and is not a stand-alone insurance product or contract by itself. In other words, if you do not have a basic insurance contract, the insurer will not provide you with a rider. For instance, if you have a standard whole life policy and you would like term insurance, the insurer will generally provide you with a rider to your existing policy as a means of amending the cover. You should always balance the request for a rider for additional coverage against the cost of that coverage and ensure that you are getting value for money. Make sure that the benefit that you receive justifies the additional costs that you must pay. You can also use a rider to eliminate or reduce the scope of cover for coverage that you do not fully require.
Some of the more common riders available in the Singapore insurance market described below:
- A term rider is the equivalent of attaching a term insurance policy to your basic life insurance
- Total and permanent disability rider. This cover is normally part of the basic life insurance contract. If your contract does not include this, you may request the issue of a rider to add this to your coverage
- An accidental death benefit rider will add a form of personal accident insurance to your basic cover. Normally, in the event of death or accidents, you will receive a payment additional to the basic payout under the policy
- A waiver of premium rider will prevent the policy from lapsing if the insured is unable to pay his premium because of disability or critical illness. This is tantamount to a waiver of the premium payable
- A critical illness rider will mean that the insured will receive an additional payment in case he contracts one of the critical illnesses specified in the policy.
- A guaranteed insurability option rider gives the insured the right to take out an additional insurance at the specified times (for instance that the ages of 30, 40 and 50) without the need to provide additional evidence of insurability.
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What is insurance quote
Insurance is like an umbrella that you use for protection when the weather is bad. If the sun is shining, an umbrella will be the last thing on your mind but if you are caught in a sudden or a storm without an umbrella, you will very quickly be educated on the benefits of a good umbrella. Similarly, with insurance, you will not appreciate the value as long as things are going well. In fact, many people consider an insurance premium to be a waste of money. However, if something like a fire or a car accident should happen, the financial loss that you will have to bear will be a harsh lesson in the necessity for insurance. Remember that insurance cannot prevent events and calamities from happening but it can certainly cushion you against the financial consequences of such an event.
An insurance quote is an estimate of the cost of insurance that the insurer will provide to you and is based on the information that you furnish to the insurance company. For instance, if you are looking for life insurance, you will be required to provide personal information such as your age, your gender and whether you are a tobacco user. In addition, you would be required to provide information on your lifestyle, your health and your family history. An actuary will then use statistical tables to estimate the risk that the insurer is required to carry and determine the premium that is required to be charged. The quote will also list standard terms and conditions and state whether the cover is term life insurance or whole life insurance.
Here are some tips on how you can obtain quotations for insurance that are affordable and fit your budget.
There is no substitute for homework and lots of effort in planning your insurance. You need to be fully aware of and conversant with whatever you are buying including the advantages and disadvantages and the benefits that you will receive for the costs that you are going to pay.
You should be asking yourself questions of the following kind:
- What is the quality of the coverage that you are getting.
- What are the credibility, reputation and history of paying out claims for that particular insurance company.
- Does the quote cover everything that you need at a price that you can afford.
It is important to for you to remember that the insurance needs vary from individual to individual and what is adequate for somebody else may not necessarily be adequate for you. At the same time, be realistic about your needs otherwise you will end up spending too much on coverage that you do not actually require. For instance, if you have a house that is worth $250,000 and the contents are worth a further $50,000, ask yourself what it will take to replace your house and contents in the event of complete destruction by say fire. You should ask for insurance quotes for the coverage that is required.
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What is insurance policy
In insurance, an insurance policy is a binding and valid contract between the insurer and the insured (who was also known as the policyholder) outlining the terms and conditions of the insurance coverage being provided. In return for receiving a premium from the insured, the insurer agrees that, in the event of any insured peril or event that is specifically covered by the policy, he would pay for the damages. Because insurance caters to specific needs, an insurance policy will have some features that are not often found in other kinds of contracts. The policy is generally what is called an integrated contract that is to say that all the contracts that are required incorporated in the document.
Among the general features common to many kinds of insurance policies, the claim will be paid to the insured or a nominated beneficiary on the happening of an event defined in the policy. Insurance is distinguished by the principle of fortuity which means uncertainty. The uncertainty can relate to when the event will occur (for example, in the case of life insurance, death is certain but the time of death is uncertain) or whether the event will occur at all (in the case of fire insurance, the fire may never happen). Insurance contracts are often described as adhesive because the contract is drawn up by the insurer and the insured has little or no say in determining the contents. Insurance contracts may also be described as “aleatory” which means that the amounts exchanged between the insured and the insurer are not equal and are determined by uncertain future events that may or may not happen. This is contrary to most other kinds of business contracts where the amounts exchanged will be roughly equal.
The other general features of all insurance contracts are that they tend to be unilateral contracts where all the promises that can be enforced in law undertaken by the insurer. This means that if the insured has paid his premiums on time and otherwise meets the conditions of the insurance contract, the insurer is bound to pay. All kinds of insurance contracts are covered by the principle of “uberrima fides” which means utmost good faith. There is a duty on the insured to disclose every single material fact regarding the risk that is being covered. If this condition is breached, the insurer has the right to avoid the coverage. This again is in contrast to the principle of caveat emptor (buyer beware) that governs most commercial contracts.
The important parts of an insurance contract are as follows:
- Declarations cover such facts as the name and address of the insured, the amount or value of the insurance, the premium to be paid and so on.
- Definitions constitute the most important part of the policy because they determine what perils or risks are covered, the exact nature of the coverage and generally summaries the responsibilities of the insurer.
- Exclusions are also important in that they describe what is not covered within the scope of the policy in terms of losses it will not be covered because of the happening of events that are not covered.
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Term Insurance coverage
Term insurance refers to a life insurance policy that is valid for a fixed term and pays a lump sum to your family if you should die within the period of this term. You should know that basic term insurance only provides insurance cover for death and the policy does not accumulate value or provide any form of saving. Your family or your beneficiary will only receive payment on the happening of an event that is covered by the policy. If you survive beyond the fixed term of the policy, the coverage will expire and even if an event that is covered happens after the expiry, you are not entitled to any payment. Because term insurance is for a fixed term and does not accumulate cash value, it is normally the cheapest form of insurance when compared to other forms of insurance that accumulate cash value such as endowment or whole life policies.
You can choose between various periods of cover for a morale term insurance policy and cover is generally extended till you have reached the age of 60 years.
The two options generally offered by Singapore insurers are as follows:
- In fixed term coverage, the term is specified in the number of years such as 10 years or 30 years during which the coverage will be valid. This could be subject to the maximum coverage and the maximum term applicable to that particular insurer. After the term is over, coverage automatically lapses.
- In a renewable term coverage, the term is generally five years though one-year coverage is also available. The policy is automatically renewed at the expiry of the term with the same coverage subject to the maximum age that is covered under the policy. You can expect to pay an increased premium with every renewal.
In Singapore, term insurance is generally for death as well as total and permanent disability. Depending on the insurer that you choose and the special policy that you are buying, you may be able to add riders for Terminal Illness, Critical Illness and Personal Accident Cover. If you miss a premium payment, the insurer will generally give you a grace period of 30 days after the due date. If you do not make payment within this grace period, the policy will lapse because there is no cash value against which the premium can be adjusted.
Because term insurance hinges on risk management, the insurer will take certain factors into account while setting the premium. For example, in assessing the health risk in your case, illnesses such as diabetes or high blood pressure will be taken into account while calculating the premium that you have to pay for coverage. The medical history of your family and your lifestyle will be taken into account and you may be required to undergo a physical examination. If the insurer suspects that you have provided wrong information, he will simply suspend the coverage on your policy. If you have stated that you are a non-smoker and you died of lung cancer, the insurer will investigate the circumstances before paying out. Because women tend to live longer than men, they pay a lower premium.
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