Write-up on Insurance 1. Who can buy an insurance policy? i. Everybody and anybody can buy subject to underwriting. An individual or business on behalf of their employees. The Individual 2. Term life a. It covers you for a set term. It pays out if death occurs and permanently disabled. 3. Whole life b. Life time insurance. There is no capping on age. It provides ‘cash value’ upon termination of policy. It is a form of savings and protection. 4. Endowment c. A disciplined method of savings. It is a combination of savings and protection. Invested for a period of time, it pays out if death or permanently disabled.
5. Critical Illness insurance d. Under this policy, if you are first diagnosed or the first surgery to be operated upon, with the agreed upon illness you are paid a lump sum. 6. Medical Expenses Insurance e. Hospitalization is getting expensive. Doctors right now are recommending you not to stay at the hospital. You may opt for medical expenses insurance The Company will reimburse the insured for expenses incurred for accident, illnesses as in inpatient medical treatment, outpatient day surgery, laboratory tests, consultation with specialist and X-rays. 7.
Hospital Cash Insurance f. It pays out cash for each day that you are hospitalized. There is a waiting period for a number of days after you are hospitalized. It could also be for a set number of days for each year for the lifetime of the policy. 8. Disability Income Insurance g. Under this term, the insurer will pay up to 80% of your loss of income due to accident or illness 9. Long-term Care Insurance h. Under this policy, it pays out monies for long-term nursing for each month. Daily activities such as feeding, going to the toilet, bathing, dressing etc.
Different policy has got different terms for definition of ‘daily activities’ that a person cannot do. 10. Annuity i. This is for retirees. It involves investing a one-time payment to the company and in return it pays out a monthly return. Annuities from the Central Provident Fund members from the Central provident fund minimum sum scheme or minimum sum plus scheme are also available. Business 11. Introduction to The Business j. The current trend in a business has always been to offer welfare and benefits to their employees.
If they do not have these schemes than no one will join that particular business and the business will have a low attraction from the best talent. It is so much well entrenched in the Singapore business that it is not exactly known as to when the welfare and benefits started. We do know that the trend accelerated during the 1980’s because of competition of manpower. Employees benefits from insurance plan. Though they are not party to it. It is between the insurance company and the business for the benefit of the employee. That is the insurance scheme and the agreement is called a ‘Master Policy’.
What terms to be discussed will be in the ‘Master Policy’. k. Self-funded Schemes ii. Employers can fund schemes internally, through revenues generated from the company reserves. The downside to it are: 1. It is difficult to estimate and predict for compensation on the death of the employee. 2. The cost of Packaging, the experience to develop, the difficulty to manage the welfare and benefits, far outweighs the benefits to the company. It may end up more than the employer is willing to pay. 3. Rules of the scheme are open to interpretation by employees. Disputes may arise out of the scheme. l.
Third party Insurers iii. Employers benefit through insurance plans. Insurance companies have professionals to do the packaging, taking of risks of uncertainty, the already entrenched administration system and legal structures. The cost administration far benefit better than it were if it is to be self-funded. 12. The Business Insurance m. Benefits Scheme iv. Group Term Life Insurance 4. It is a low cost grouping of employees. Assured by an insurance company, it offers the benefit to an individual employee upon uncertain happenings and death of the employee. v. Group Critical Illness Insurance
5. Under this scheme, the term life is extended to cover critical illnesses. A schedule of the various types not exceeding 30 illnesses from 37 illnesses is covered. vi. Group Medical Benefits Insurance 6. Under this scheme, the employee can claim medical expenses from the company. The company may also opt for the following: a. Group Hospitalization and surgical. i. This scheme will reimburse the employer if an employee were to be hospitalized. ii.
The employer may opt to buy Outpatient Specialist consultation and laboratory testes expenses outpatient general practitioner clinic.iii. In addition to it, the business may opt to buy group dental care and group vision care. 7. Group Personal Accident Insurance b. This is cheaper to the term life. The personal Accident offers payment due to death or illness.
8. Group Long term Disability Income Insurance c. The plan offers a portion of the employee’s earnings if the employee is permanently disabled. General Insurance 13. General Insurance n. Motor (vehicle, Auto or car) Insurance vii. If an accident occurs, it is used to protect losses in payment to the other party. o. Fire viii.
Statistics have shown that the main cause of fire is damaged or overused electrical appliances, overheating of food, dropped light s in cigarettes, joss sticks, incense paper etc. The cost is minor against a major mishap. p. Workman Compensation ix. Governed by state laws. All workers must be insured against any injury, medical expenses, rehabilitation etc. in cases wages has to be paid. q. Public Liability x. It covers your legal liability to third parties for accidental bodily injury or loss of or damage to property whilst in the course of business r. Hospital and Surgical Expenses Insurance xi.
If you are hospitalized and Surgery is needed, then the insurance covers hospital, surgical, and emergency accident outpatient expenses incurred as a result of accident, sickness or disease. s. Personal Accident xii. Under this policy, it will cover you for bodily injury or death arising from an accident t. Travel xiii. Safeguard against any uncertainty. Under this plan you are guarded as soon as you set yourself to the airport, during travel and at least two hours after you set foot in Singapore. u. Maid xiv. Maid insurance is a must by law. What type of insurance are you looking for? Does she run away?
Is she prone to sickness? Call us and we will discuss. v. Home Insurance xv. You have an expensive house and you fail to insure your home. Home insurance is a fraction of the land, house and furniture and fittings that you have placed in your home. Insurance will cover against anything, e. g. floods, bursting of water main pipes, specified natural disasters like earthquake etc. w. Burglary & Theft xvi. Do not ever think that my house is safe from burglary. You placed money all over the place that will invite burglary into your home. What about the expensive wall painting that you have invested on? Or your prized tea cups?