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Confused about the difference between term and whole life insurance or unsure if you need critical illness protection? Read this guide to begin.

Insurance doesn’t have to be daunting. Here’s an easy guide for starters

Looking for insurance? A beginner’s guide to what options to consider

Taking the time to understand and build your insurance portfolio will help protect you and your loved ones’ future.

Insurance should form a key component of your long-term financial planning. It not only offers financial protection for your family in case of an accident, ill health or death, but acts as a safety net for your future needs as well.

When deciding on the type of insurance suitable for you, it’s important to identify your protection needs and long-term commitments. You can then map these requirements to the insurance policies that best address them.  Once you have this in place, you and your family can be assured of a secure future.

Life Insurance

If you are the main breadwinner in your family, you might want to consider life insurance. It serves as a form of financial security for you and your dependants should there be a loss of income in the event of your death.

Here are some major types of life insurance policies.

  • Term Life: Offers pure insurance coverage at the lowest premium as it provides no cash value if you survive the term of the policy. This is a good option to consider if you are only looking at high coverage and using other investment tools for better returns. Keep in mind however, that a pure term life insurance offers coverage for a limited time frame (10, 20 or 30 years) or up to a particular age, and this may not meet your long-term needs.
  • Whole Life: A good option if you want to be covered for life while reaping the benefits of building cash value. A whole life policy generally  allows you to accumulate wealth over the long term while giving you the option to partially withdraw money in the form of annuity payments to meet your retirement needs.
  • Endowment: Allows you to build cash value over a fixed period, with the aim of meeting a long-term goal, such as your children’s college education. With an endowment plan, you will generally pay premiums for the . In addition to being a savings vehicle, endowment policies also offer insurance protection for the length of the policy term.

Health Insurance

Accidents, illness and disability can lead to a significant financial outlay for medical expenses and hospitalisation costs, as well as a loss of income. Group health insurance from your employer may not offer you sufficient coverage. Also, while Singapore citizens and permanent residents enjoy Medishield Life coverage, its benefits are based on the cost of staying in B2 or C class wards in public hospitals.

If you are considering additional coverage, here are a few options:

  • Medical expense insurance: This provides wider coverage for your hospital and surgical expenses.
  • Hospital cash insurance: Offers a fixed amount of cash when you are hospitalised, to be used as needed.
  • Critical illness insurance: Pays out a lump sum for medical treatment and other expenses when you are diagnosed with a major illness like diabetes or cancer.
  • Disability income insurance: Offers a monthly payout to replace your income when you are unable to work as a result of accident or illness.
  • Long-term care insurance: Pays a monthly benefit towards expenses for long-term care if you are severely disabled or unable to take care of yourself.
  • Personal accident insurance: Offers you and your family financial support in case of death or permanent disability from an accident.

Want some information on financial protection and long-term savings? Talk to our financial advisors today. Get in touch with us.

Or log onto Standard Chartered Mobile Banking or Online Banking to chat with us and we will help to connect you to a financial advisor.

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Disclaimer:

Buying an insurance policy is a long-term commitment. An early termination of the policy usually involves high cost and the surrender value payable (if any) may be less than the total premiums paid. The contents of this article do not constitute a contract of insurance and reference should be made to the respective policies for the exact terms and conditions applicable to the insurance policy. It does not constitute an offer to buy or sell an insurance product or service. It is also not intended to provide any insurance or financial advice. All insurance products described in this email are products of and underwritten by Prudential Assurance Company Singapore (Pte) Limited (“the Insurer”) and not Standard Chartered Bank (Singapore) Limited. Standard Chartered Bank (Singapore) Limited shall not be liable in any manner whatsoever regarding your application or the contract of insurance. In facilitating insurance arrangements or in referring customers to any Insurer, the Bank is acting in alliance with the Insurer and not as an agent for customers. This article is being distributed for general