22 March 2024

Singapore Insurance Guide: Must-Have Policies for Working Adults

Starting your career in Singapore is a big step, and one of the first big decisions you'll face is about insurance. You might ask yourself, "Do I really need insurance?". It's common to hear people say it's better to be safe than sorry, and that's good advice. But it's also really important to know what you're signing up for so you don't end up with something you don't need or don't understand.

We know that picking the right insurance can feel tricky, especially if you're new to it. That's why we've put together this guide. It's going to help you understand all the key insurance terms, and it'll show you the most important types of insurance you should think about. We'll make it clear how these insurance plans can help you out. Additionally, we will touch on how insurers, like RHB, strive to offer comprehensive and sufficient coverage for the needs of working adults in Singapore. Let’s dive into it!

Key Takeaways

• Insurance is essential for financial protection; it maintains the well-being and financial stability of your family, especially during unforeseen events like loss of income, disability, or critical illness.
   
• The most important insurance policies include health insurance, life insurance, and income protection insurance.
   
• For more flexibility, you may choose an insurance distributor like RHB as they collaborate with multiple insurers to offer a wide range of insurance products, including health, retirement, and legacy planning.

The Importance of Insurance for Working Adults

As working adults, we must understand the significance of having insurance, particularly when it comes to ensuring the well-being of ourselves and our dependents. Financial protection plays a vital role in maintaining our families' quality of life, especially in the face of unexpected events such as loss of income, disability, or critical illness.

Here are some key aspects of insurance to help better inform our decisions:

Understanding Insurance Terms

Before learning about the main types of insurance policies, let’s familiarise ourselves with some common terms:

The 3 Most Important Insurance Policies

Health Insurance Details

As a Singaporean or Permanent Resident, you're automatically covered by a basic health insurance scheme known as MediShield Life. This mainly covers subsidised treatments in public hospitals. However, according to Singapore’s Ministry of Health, 

“MediShield Life payout will cover only a small proportion of your bill. You would need to draw from MediSave and/or cash to pay the balance.”

That's where supplementary hospital insurance comes into play, and why many in Singapore are opting for it. These additional plans cover more costs in both public and private hospitals. With the help of these plans, you gain greater health insurance coverage for medical expenses, offering more choices and flexibility in managing your healthcare.

Life Insurance Details

When it comes to life insurance, two main types are available:

1. Term life insurance, and
    
2. Whole life insurance.

Term life insurance covers you for a specific period of time, typically between 10 to 30 years. If the policyholder dies during the term, their beneficiaries will receive a payout. On the other hand, whole life insurance provides coverage for the entire lifetime of the policyholder. 

The premium for whole life insurance is higher, but over time the cash value component will accumulate. Ultimately, both types of life insurance policies are crucial for safeguarding your loved ones financially in case of unforeseen events.

Income Protection Insurance Details

One of the most important aspects of insurance planning is protecting against income disruption. There are two main types of insurance policies that can offer financial assistance when you're unable to work:

Firstly, we have disability income insurance plans. These policies provide a safety net in case an illness or injury prevents you from working. It is designed to ensure that you can continue meeting daily expenses and financial commitments. There are also government-approved supplement plans like the Singlife Careshield that offer additional payouts for severe disability.

Secondly, there are critical illness insurance plans. These policies give a lump sum payment upon the diagnosis of a covered critical illness, such as cancer, stroke, or heart attack. This financial support can cover medical treatments, household expenses, and any lifestyle adjustments needed while recuperating. Critical illness coverage can also be added as a form of rider to a basic insurance plan so that you enjoy a higher degree of coverage.

How RHB Bank Provides Insurance Coverage

At RHB, we partner with renowned insurers like Income Insurance, Singapore Life Insurance, Manulife, and Tokio Marine Life Insurance, to offer you a comprehensive suite of insurance products that cater to different needs.

This means there is no need to limit yourself to a single insurance provider. Through our partnerships with both public and private insurance companies, we provide our customers with a wide range of insurance choices, encompassing everything from healthcare costs to retirement and legacy planning. This versatility allows our customers to tailor their insurance portfolios to suit their specific needs, guaranteeing that they are well-covered for their unique circumstances.

Here is RHB Singapore’s range of insurance plans:

1. Long-Term Care Supplement: Supplement your long-term care for mild to total permanent disability
    
2. For Retirement: Continue to receive income even after you stop working
    
3. For Savings: Grow a nest egg with our endowment plan
    
4. For Hospitalisation: Receive medical coverage and subsidised hospitalisation treatments
    
5. For Protection: Protect yourself from the unexpected with a personal accident plan
    
6. For Legacy: Distribute your assets to your loved ones after death

In addition to providing this diverse range of options, RHB also offers Premium Financing, where our bank funds part of the whole-life policy and significantly reduces upfront cost. This allows you to secure a vital policy without needing to liquidate your assets or struggle with initial payments. 

Skip the Insurance Agent—Reach Out to an Insurer Directly

At RHB, you can always rely on our knowledgeable and friendly team to guide you through the process and find the best insurance solutions for your needs. We're confident that, together, we can help secure your financial future and give you peace of mind, knowing you and your loved ones are protected. Should you need any assistance or personalised advice, please don't hesitate to reach out to us at RHB.

The information presented in this article is accurate as of date of publication.