Starter Guide to Financial Planning
A Complete Guide Of Insurance That You Can Buy Online
The Internet is a wonderful invention and it has helped us in our daily living. We can book hotels, purchase groceries or even shopping. Certainly, our life has gotten better with the Internet.
You can even buy insurance online. And some of you are already familiar with this. Well most of the time, we would buy travel insurance online just before going on holiday. But we will unveil other types of insurance that you are able to purchase online.
Travel Insurance
Let start with this. There are 2 types of Travel Insurance. Single Trip or Annual Multi-trip.
Single Trip would be like a one-time thing. You just buy Travel Insurance for that trip only. It is suitable if you seldom travel overseas.
For Annual Multi-trip, you buy the Travel Insurance and it will insure you for a year. It is suitable if you go on for holidays or business trips regularly.
The premiums depend on the location you go, the activities you are doing overseas and definitely the length of your trip. You can buy them months before your trip or even a day before your flight. Thus, you can transact the purchase online for convenience purposes.
Personal Accident
If you are accident-prone and you are a careless person, Personal Accident insurance is something useful to you.
Accidental death, injuries due to an accident and medical expenses due to accidents are just a few of the benefits they have to offer. Premiums are quite affordable and the best thing is you can purchase it online.
One reason on why you can buy it online is due to the fact that is no medical underwriting involved hence shortening certain processes. Thus it is just a click away from owning a Personal Accident insurance.
Car Insurance
In Singapore, it is a requirement for you to have insurance for your vehicle. But you also should know that you can change your insurance provider and have a chance to enjoy cheaper premiums.
There are a lot of insurance companies that offer vehicle insurance and the premiums vary from each one. Thus it is definitely a possibility to find out which one has the best offer, as they are available online.
Heads up. Changing or buying a new Car Insurance would mean you are letting go of the older insurance benefits. Sometimes the newer insurance might be cheaper but have lesser benefits and coverage. Thus it is always important to read and re-read prior to changing your Car Insurance.
Home Insurance
The context of Home Insurance is the coverage for the items inside your home that are lost and damage due to theft or even fire. Personal liability is sometimes included. And some even will provide you with temporary accommodation if your current home becomes temporarily uninhabitable.
For HDB homeowners, this is different from the Fire Insurance that you already have. The Fire Insurance that you have will only pay for the damage of the original structure of your flat and NOT the contents.
It is suitable if you have a lot of valuable items inside your home. The premiums are affordable and it is always good to have a Home Insurance as most of us place our belongings at home thus all the more we should protect them.
Direct Purchase Insurance (DPI)
This type of insurance was introduced only recently and it is just another way for you to buy life insurance. The difference is that you will not be paying distribution cost and you do not have an option to choose a high amount of sum assured. In other words, it is cheaper.
There are only 2 kinds of DPI; they are a Whole Life and Term Life policy. You can read the difference of them both here.
Distribution cost would translate to commissions and by not paying them you do not receive any financial advice. Hence, you should know your own financial commitments, need, and shortfalls in order for you to determine the sum assured you need.
If you are not aware of the above, it is better for you to seek advice prior to purchasing a life insurance policy. You do not want to make a wrong purchase, as you do not get a refund if it is beyond the free-look period.
It is convenient but make sure you know what you are buying
Everyone wants things to be seamless and easy but it comes at a price if you do things wrong. Have a clear objective and know what you are doing when you purchase insurance online.
Hope that this article was useful. Do share it with your family and friends. Till next time.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
