Singapore Beginner’s Guide to Insurance: Must-Haves, Options & Choosing the Right Plan

Singapore’s healthcare system is top-notch, but facing unexpected costs can be stressful.

With millions of medical procedures performed each year and a life expectancy of 83.7 years in 2023, having the right type of insurance plan is like having a financial superhero in your corner.

This guide empowers you to navigate the options and find the perfect fit. We’ll break down essential plans, explore valuable add-ons, and equip you with the knowledge to make informed choices.

No more insurance anxiety – let us unlock your path to financial security!

Types of Insurance in Singapore You Need To Know About

1. Health Insurance: Safeguarding Your Medical Needs

Health insurance is a fundamental part of the Singapore health care system. Regardless of your age, whether you are young and healthy or in your retirement years, health insurance allows you to get medical care without your savings.

MediShield Life: MediShield Life is a basic health insurance that pays the large hospital bills of the insured person. It also covers selected outpatient treatments..

• Coverage: It covers hospitalisation in B2/C wards and specified outpatient treatments.
• Claim Limit: You can make claims of up to S$150,000 a year, with no lifetime limit. This ensures that even unforeseen medical conditions or accidents won’t put you in massive debt.

Integrated Shield Plans (IPs)

Integrated Shield plans are private insurance plans that enhance coverage of MediShield Life. They offer additional benefits, including coverage for private hospitals and higher-class wards.

• Premiums: Annual premiums are about S$300 for those aged 40 and below, and about S$600 for those aged 41 to 70. The premiums are usually quite affordable, considering how expensive the medical costs in Singapore are.

Who Needs It?

Health insurance is important for everyone, from young adults to retirees. The sooner you buy a plan, the cheaper the premium is going to be. It offers peace of mind knowing you won’t face financial hardship while recovering from illness or injury.

2. Life Insurance: Providing Financial Security for Your Loved Ones

Life insurance offers financial protection to your beneficiaries in the event of your death or terminal illness. It ensures that your family can maintain their lifestyle and meet financial obligations even in your absence. Below are the two types of life insurance in Singapore:

a. Term Life Insurance: Affordable Protection for Specific Needs

Term life insurance provides a cheap and temporary solution that ensures the safety of your loved ones if you die or develop a terminal illness. This insurance in Singapore is ideal for those who want to ensure their loved ones’ safety for a limited period at an affordable price.

Here’s a quick breakdown of term life insurance:

Coverage

A term life insurance pays a lump sum on demise or diagnosis with a terminal illness, during the term of the policy. It’s good for covering short-term needs like mortgage, children’s education or any other financial commitments that may arise.

Term Length

Depending on different aspects of life, one can take insurance plans ranging from 5 years to 30 years. Most common terms are 10, 20 or 30 years, depending on your circumstances and will offer you flexibility.

Premiums

Term life insurance is less expensive than whole life insurance. This is because it only offers coverage for a fixed period of time and doesn’t accumulate cash value. For example, healthy 30-year-old males may pay premiums starting from S$15 to S$20 a month for S$500,000 coverage over 20 years.

Riders

You can include optional riders, such as critical illness or accidental death coverage, in your term life insurance plan. These riders can be included at a very low cost.

Renewability

You can renew many term life policies, however, the premium could increase as you get older. It is important to walk through renewal terms closely to avoid unpleasant surprises with premium.

Who Needs It?

Term life insurance is ideal for those who need temporary, cheap cover for a specified need such as.

This is especially true for people who are starting families or buying houses where their necessities are needed for a limited amount of time.

If you have a home loan, this insurance in Singapore helps your family pay off that home loan in case of your unfortunate demise. It makes sure that your family’s living expenses can be paid for if you die during working years.

Remember

Term life insurance costs much less than whole life but provides a lot more coverage and pays out for a limited term. Although it does not build cash value, it ensures your family will have enough money if you pass away unexpectedly.

b. Whole Life Insurance: Long-Term Financial Security

Whole life insurance is a permanent life insurance that provides coverage for your entire life and has an investment component. This is a good option for people who want long-term protection as well as a savings element.

Think of it like a permanent financial safety net that also grows your wealth over the long-term.

Here’s a breakdown of whole life insurance:

Coverage

Whole life insurance coverage lasts for all of your life when you pay the premiums. It accumulates cash value, and this can be borrowed against or used for future financial needs such as retirement or emergencies.

Premiums

The premiums for whole life insurance are higher than those of term life insurance because they provide all-life coverage and cash value. Depending on the insurer and your age at the time of purchase, premiums for a $500,000 coverage policy can cost anything from $250 to $500 a month.

Cash Value

The cash value of whole life insurance is one of its main functions that grows over time. With this, you can borrow from the policy or use cash value to offset the premium. It is important to note that borrowing using the policy reduces the death benefit. Not paying the amount may affect your finances.

Who Needs It?

Whole life insurance is designed for people who want lifelong protection with investment benefits.

This insurance in Singapore is useful for various individuals including people who require lifelong protection to ensure their family’s financial security, wealth accumulators who wish to use it for estate planning and wanting to grow wealth on a tax-free basis, and retirees who can utilise the cash value of policy for supplementing their retirement income.

Remember

Whole life insurance gives insurance cover for a lifetime while creating a value which you can withdraw as cash. This is a great choice for anyone wanting insurance protection for as long as they live and wants insurance for savings.

Term Life vs. Whole Life: Which Is Right for You?

When deciding between term life insurance and whole life insurance, it is important to consider your needs, financial goals, and life stage.

• Term Life: Term Life insurance is the one which offers lower premium rates and best for the ones who require coverage for a specific period. It is perfect for covering your financial obligations like mortgage and kid’s education.
• Whole Life: Whole Life Insurance is useful for people looking for lifelong coverage with investment. This allows you to make long-term financial plans and build wealth through the cash value of the policy.

3. Disability Insurance: Ensuring Income Continuity

Disability insurance is a crucial component of financial planning that provides replacement income if illness or injury stops you from working. As your income increases, this coverage becomes all the more necessary due to more liabilities.

Think of it as a safety net that ensures your financial stability during challenging times.

Here’s an overview of disability insurance in Singapore:

CareShield Life: A Government-Backed Safety Net

CareShield Life is Singapore’s long-term care insurance scheme. It offers financial support for those who become severely disabled and require long-term care.

• Monthly Payouts: In 2025, the monthly payout is S$662. From 2026, payout will rise by 4% every year, reaching S$806 from 2030 onwards.
• Premiums: From 2026 to 2030, annual premium increases will be capped to around S$38 on average, with no more than S$75. This system keeps premiums affordable for all Singaporeans regardless of the rising costs of care.
• Lifetime Coverage: After you have paid all your premium up to age 67 (or 10 years after you join, whichever is later), you continue to be covered for life.
• Claim Criteria: To claim payout, you must be unable to do at least three of the six Activities of Daily Living (ADLs) which are washing, dressing, feeding, toileting, walking or moving around and transferring.

Additional Premium Support

To ensure that CareShield Life remains affordable:

• Transitional Support: The government will provide more than S$570 million in additional support over the next five years, comprising broad-based transitional support and means-tested subsidies.
• Means-Tested Subsidies: Low to middle income Singaporeans will receive premium subsidies of up to 30% to offset the higher premiums.
• Additional Premium Support: For individuals who are not able to pay their premiums even after subsidies and limited support from family, the government will provide additional premium support.

Who Needs It?

People with a disability should consider disability insurance to keep their income flowing if illness or injury prevents them from working. If you have dependants, it’s crucial to make sure your family is protected.

Disability insurance can help you cover mortgage repayments if you have one and are not working. It offers income protection for a self-employed person without employer benefits. If you are the main earner in your family, then this is also essential. This protects your family’s lifestyle in case you cannot work.

4. Critical Illness Insurance: Financial Support During Serious Health Conditions

When a critical illness strikes unexpectedly, there are many types of insurance in Singapore, but a critical illness (CI) plan can be your armour in the fight. These policies give essential financial support. They help you focus on recovering instead of stressing over medical or loss of income bills.

The Life Insurance Association of Singapore (LIAS) lists 37 significant illnesses that these plans cover and make a payout when you reach a particular severity of illness.

Why Consider CI Insurance?

Peace of Mind in the Face of Illness

According to data from LIAS, 90 percent of claims for severe critical illness now involve the following five illnesses:

• Major Cancer
• Heart Attack (specified severity)
• Stroke with Permanent Neurological Deficit
• Coronary Artery Bypass Surgery
• End-Stage Kidney Failure

These conditions can be financially devastating, and CI insurance ensures that you are financially supported during such challenging times.

Financial Support During Treatment

A critical illness payout is a lump sum offered to financially assist during treatment by helping to mitigate medical costs, loss of income and more. This insurance can relieve some financial stress for both you and your loved ones as treatment of critical illness may be prolonged and expensive. The payout can help cover.

• Hospital and surgery costs
• Ongoing medical care and rehabilitation
• Lost income if you’re unable to work during treatment

Coverage Beyond Diagnosis

Certain critical illness plans provide benefits that also cover your dependants, in addition to treatment benefits. These policies may allow you to get extra money to help your family while you recover so they do not have financial stress while you get healed.

5. Personal Accident Insurance: Protection Against Accidental Injuries

Accidents can occur anytime. Also, they can lead to medical bills and lost income. Personal accident insurance covers injuries occurring due to accidents, which can give injury victims and his families some relief during hard times.

Why Consider Personal Accident Insurance?

Comprehensive Coverage

Most personal accident insurance plans in Singapore cover accidental death, total and permanent disability, partial and permanent disability, medical expenses and daily hospital cash. For instance, the AIG Sapphire Enhanced Choices plan offers up to S$100,000 for accidental death and disability, reimbursement for medical expenses, and daily cash for hospital stays.

Affordability

Premiums of personal accident insurance plans are typically low, so they can be accessed by anyone. For Example, Income’s PA Assurance plan starts from S$0.55 a day for coverage.

Additional Benefits

Several plans come with additional benefits, like coverage for infectious diseases, chiropractic treatments, and Traditional Chinese Medicine (TCM) services. For instance, Income’s PA Assurance covers up to 25 infectious diseases as well as TCM treatment reimbursement.

6. Cyber Insurance: Safeguarding Against Digital Risks

With the world progressively digitising today, the chances of cyberattacks, data breaches as well as many online threats are increasing. Both individuals and small to medium enterprises (SMEs) are increasingly being advised to get cyber insurance. It helps pay for losses connected with hacking, phishing, and data loss.

As more businesses shift to digital operations, the need for this coverage becomes even more crucial. Despite the growing frequency of cyber incidents, WorkBuddy found that many SMEs still lack cyber protection, putting them at risk of significant financial damage.

What Does Cyber Insurance Cover?

Cyber insurance typically covers a wide range of risks, including:

• Ransomware attacks: When hackers ask for money to free up your systems or data.
• Data breaches: It covers the cost of stolen or leaked personal or business information.
• Business interruption: It provides financial support to cover income loss or business halts as a result of a cyber attack.
• Legal and regulatory fees: It covers the costs linked to laws and regulations – such as investigation and penalties — caused by a hack.

The cyber insurance market continued its rapid growth in 2025, driven by the increasing digitalisation and rising incidence of cyberattacks. The cost of premium ranges from SGD 6,470 to SGD 25,880 annually by businesses in Asia which varies with the size of the company and the coverage it requires.

Why Consider Cyber Insurance?

Peace of Mind

Cyber insurance helps companies and individuals stay safe when cyber incidents occur, for example, due to a data breach. Its coverage will give you peace of mind, knowing that you’re protected against the costs related to cyber threats.

Financial Support During Attacks

In case of a cyberattack, cyber insurance can provide cover for recovery expenses like technical repairs, legal costs and fines. This is especially important as data breaches and cyberattacks are expected to cost businesses around the world USD 8 trillion in 2025..

Broad Coverage

Cyber insurance does not simply aid recovery. It can help cover interruptions to business activities, third-party liabilities and damage to reputation, which can be significant after a cyberattack.

Who Needs Cyber Insurance?

Cyber insurance is important for businesses that deal with sensitive information, e-commerce websites, freelancers in the digital field and high-net-worth individuals with valuable online assets.

It provides protection against hacking, stealing of data and stealing of identity. As digital threats are on the rise, you must get this coverage to safeguard yourself from such digital threats.

Choosing the Right Insurance

Choosing the suitable insurance plan is essential to safeguarding your finances and relaxing your mind. In 2025, Singapore insurance includes a large range of options that are suitable for the different needs and budgets. Here’s how to navigate this landscape effectively:

1. Consider Your Needs and Budget

It is necessary to look at the insurance option that suits your circumstances and financial position:

• Age & Health: Younger people get lower premiums and benefits as compared to older people for term life insurance. For example, term life insurance costs may average around S$298.85 for a male non-smoker aged 30. On the other hand, older people often get charged high premiums for health issues.
• Dependants: If anyone depends on your earnings, it’s important to get life insurance and disability insurance. Plans such as CareShield Life provide financial assistance for severe disabilities. From 2026 to 2030, the premium of the policy will go up by S$38 a year on average
• Lifestyle: Engaging in activities that are risky may require more cover. For instance, personal accidental insurance offers financial assistance in case of injury due to an accident.
• Premium Costs: Make sure the premiums are affordable, and sustainable in the long run. When selecting a plan, it is wise to compare different health insurance plans based on their claim limit and coverage offered.

2. Determine Adequate Coverage Amount

Selecting the right amount of coverage is important to ensure that your insurance plan meets your requirements without breaking the bank.

• Health Insurance: MediShield Life offers basic coverage for hospital stays, while the Integrated Shield Plans (IPs) may offer enhanced coverage for hospitalisation. For example, the yearly IP premium for someone between 41 years old and 50 years old is S$534.81.
• Life Insurance: The Life Insurance Association of Singapore recommends a sum assured amount for critical illness worth around S$316,000. This is in fact 3.9 times the average annual salary of a Singaporean.
• Disability Insurance: CareShield Life pays you a minimum of S$662 monthly for severe disabilities and increases by 2% yearly until 67.
• Critical Illness Insurance: Plans like Singlife Multipay Critical Illness II covers up to 135 conditions at any stage (early/ intermediate/ severe), with total coverage amounting to up to 900% of the sum assured.
• Personal Accident Insurance: Basic plans provide compensation for an accident resulting in death, or medical expenses incurred from an accident. The premiums start from as low as S$0.55 per day.

3. Understand Policy Terms and Conditions

It is very important to review the entire terms and conditions of your insurance policy to avoid surprises and ensure comprehensive coverage.

• Exclusions: Be aware of what is not covered under your policy. For instance, some personal accident insurance may not cover injuries sustained through dangerous activities or pre-existing conditions.
• Riders: You can enhance your coverage by adding riders to your base policy. In case of an unforeseen event, riders like critical illness or accidental death benefits can provide help.
• Claim Process: Familiarise yourself with the steps involved in filing a claim. If you know which documents are required and how long it takes to process a claim, it will ensure a smooth experience when you need to utilise your policy.

If you consider your needs and determine adequate coverage, while also obtaining knowledge of the policy terms, you will make a better decision more aligned with your finances. Always remember, insurance is not just a product; but a tool to protect the future of you and your loved ones.

Start Applying for the Type of Insurance You Want or Need

Getting the right insurance is an important step to protecting your financial future. Several Insurers offer exciting deals in 2025. This will make your insurance journey affordable and rewarding. Here’s insurance guide Singapore on how to go through the application process and make the most of it:

Step 1: Explore Current Promotions

Insurance companies are offering enticing offers to attract customers. For instance:

• FWD Big 3 Critical Illness Plan: Use the promo code BIG60 to receive 60% off your first-year premiums for the FWD Big 3 Critical Illness Plan. You can get a sum assured of S$100,000 with as low as S$84.21 in premium, where the sum assured will cover early to late stage cancer, heart attack and stroke.
• FWD Cancer 2.0 Insurance: Using promo code CAN50, you can get 50% off on the first-year premium. The cancer plan offers full payout if you are diagnosed with cancer at any stage. Premium starts from S$118.08.
• FWD Critical Illness Plus: Use code CIP50 for 50% off first-year premiums. The coverage for this plan includes early to intermediate stages of cancer, heart attack and stroke, with premiums starting at S$157.44.
• FWD Term Life Plus: During the SG60 celebration, enjoy 50% off the premium and a S$60 eCapitaVoucher when you purchase this plan. .

Step 2: Gather Necessary Documents

To make the application process easier, please ensure that you have the following documents ready:

• Identification: A valid NRIC or FIN card.
• Health Declaration: Some plans may require a simple health declaration, while others may require a medical examination.
• Proof of Income: Proof of income through payslips or tax returns to determine your financial standing.
• Bank Details: Bank information for premium payment and direct debit arrangements.

Keeping these documents handy will make your application process easier.

Step 3: Apply Online

Many insurers like FWD provide online platforms to apply for policies. Applying online can speed the process up and can even get some more discounts! For example:

• FWD’s Online Application: When you apply directly online via the FWD website, you enjoy exclusive online promotions and more control over your policy.

When applying, be sure to input the correct promo codes to get the discounts..

Consult an Insurance Advisor

If there are too many options for you, you can contact a licenced advisor. They can offer tailored recommendations depending on your age, health, lifestyle, and financial goals. Your Insurance advisors can also help you compare all the plans to select the coverage that is best for you.

Step 4: Review Policy Terms and Conditions

Before finalising your application, thoroughly review the terms and conditions of the policy. Pay close attention to:

• Coverage Details: Understand what is included, and what is not included.
• Premium Payment Terms: Be aware of the payment frequency and any potential increases in premiums.
• Claim Process: Get familiar with the steps you need to follow to apply for a claim and the documents required.

Knowing these aspects will help you make a good decision and not get surprised in the future..

Step 5: Monitor Policy Renewal Dates

Once your policy is active, set calendar reminders for renewal dates. Some insurers offer loyalty discounts or perks to long-term customers. Staying proactive about renewals can ensure continuous coverage and potentially save on premiums.

By following these steps in insurance guide Singapore 2025 and taking advantage of the ongoing promotions, you may get the insurance coverage that best meets your needs and budget. But keep in mind that always choose the right insurance plan, as it will support your peace of mind and financial future.

Disclaimer:

The information in this blog is intended for general informational purposes only and does not constitute professional financial or insurance advice. BizTech Community is not an affiliate of any of the companies or brands mentioned in the blog. Therefore, BizTech Community is not responsible for dissatisfaction with the author’s review or opinions expressed in the blog.

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