LEGACY PLANNING

Insurance is important to protect against unforeseen events in life that may impact your financial security. Insurance can provide financial support against potential healthcare costs and serves as a form of asset protection. There are many different types of personal insurance available, which are catered to different needs and budget.

What does life insurance cover?
Life insurance provides a lump-sum payout (the death benefit) to beneficiaries in the event of the policyholder's death. Some policies also cover terminal illnesses or offer savings and investment benefits. Life insurance can also be used to fulfil part of your legacy planning objectives.

What are the types of life insurance?

• Term Life Insurance: Provides coverage for a specific period (for example 10, 20, or 30 years). Premiums are typically lower than other forms of life insurance. Term Life insurance can help to ensure income replacement for your next-of-kin, for example, to pay off an existing property mortgage.
• Whole Life Insurance: Provides lifelong coverage with a savings component. Premiums are typically higher than Term policies. Whole Life insurance typically includes a death benefit, as well as a cash value component that increases in value over time.
• Universal Life Insurance: Provides flexible permanent coverage that may contain investment options. Universal Life insurance premiums vary base on your needs and financial objectives.
• Endowment Plans: Provides a death benefit, and a lump-sum payout after a specific term, even if the policyholder survives the term. Endowment Plans are often used to fulfil savings or financial goals, for example, to fund a child’s education or retirement.

What does health insurance cover?
Health insurance typically covers medical expenses, including visits to the doctor, hospital stays, surgeries, medications, and sometimes preventive care. Coverage can differ depending on the policy, for example, certain policies might not allow upgrading of hospital stays to private wards, or be restricted to public instead of private hospitals or healthcare providers. Assess your needs and your budget to get the coverage that suits you best. 

Does health insurance cover pre-existing conditions?
This varies depending on the policy. Some insurers exclude pre-existing conditions, while others cover them after a waiting period has lapsed.

How are premiums calculated?
Premiums are calculated based on factors such as age, health, coverage amount, location, lifestyle, and risk profile. The insurer would assess a variety of such factors and provide a premium estimate based on the outcome.

How do I file an insurance claim?

• Notify your insurer immediately after an incident.
• Submit the required documents (e.g., medical reports, police reports).
• Follow up with the claims department until it is processed.

What is a deductible?
A deductible is the amount you pay out-of-pocket before the insurer covers the rest of the claim.

What is a policy exclusion?
Exclusions are specific conditions or events not covered by the insurance policy, such as self-inflicted injuries or acts of war.

How do I choose the right insurance?

• Assess your needs and risks.
• Compare policies from different insurers.
• Consider factors such as premiums, coverage, exclusions, and claim settlement records.

Can I have multiple insurance policies?
Yes, you can hold multiple policies for different purposes (e.g., health, life, and travel), but ensure that they do not overlap unnecessarily.