Insurable Interests

Remember when buying insurance, you need to consider your insurable interests, it is cheapest when you buy when young based on your mortality rates; 

1) So consider a Term insurance like TPD and Death for the maximum value you can afford eg S$1 million for 5/10 years while you save for a normal policy eg Life or Endowment with Riders like Health. Remember if you are diagnosed with an illness no insurance company will want to cover you for that illness again. And if your age increases your mortality rate increases substantially until you cannot get yourself covered for that risk.

2) There should be policies for people who has been diagnosed with certain illness, insurance companies should be compelled to cover these risks at a higher premium. Even a co-operative like NTUC Income does not take this into account, much less for profit insurance companies. Insurance companies has a moral obligation to serve the needs of the public by pooling resources instead of just fattening their bottom line, which is profit driven.

3) The pooling of resources and the reinvestment of un-used premium will make expensive health insurance policies viable for nowadays expensive healthcare, but why there is no such initiative? Not enough profits?

4) The FundSupermarket Saga of offering up to 50% rebate for the policies you buy show how much commissions your typical agent makes, isn’t it time to make your agent work harder? Will there be a conflict of interest if all the agent cares about is his bottom line instead of protecting your interests? How is MAS protecting all consumers?

– Contributed by Oogle.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Apple, Andriod and Windows PC. Interests include hardware and software, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader.

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