Insurance Decoded

Understand how each kind of policy is priced and built, size the cover your household needs, and choose between products with your own numbers.

Insurance is the one money decision most people hand to someone else. You meet an adviser, see a projection with a large number at age 65, and sign a policy you will pay for over decades without knowing what the premium buys. Some people end up with too little cover and expensive savings plans, and others pay for overlapping riders they never needed. This course explains how each product is priced and built, so you can see where your premium goes. Then you size life, hospital, critical illness and disability cover from your own household's numbers, compare the structures on the same money, and learn how to buy, switch and review without losing value.

What you'll be able to do

• Break down any premium into the cost of risk, the insurer's costs and any savings element
• Calculate a sum assured and term for life cover from your household's needs, net of existing cover
• Compare term, whole life and an ILP on the same premium over the same years
• Compare Integrated Shield plans on ward class, co-payment, premiums by age and panel rules
• Size critical illness and disability income cover from your own expenses and existing benefits
• Check an adviser's recommendation against your needs and the cost of switching any policy
• Write a household insurance plan and an adviser brief you can take to any meeting

Syllabus

Module 1: See what a premium actually pays for

Understand the three parts of every premium, why the cost of cover rises with age, and how underwriting and exclusions decide what a policy pays, then break down the premiums you pay today.

• 1.1 Every premium pays for risk, costs and sometimes savings
• 1.2 Why premiums rise with age, and how level premiums hide it
• 1.3 Underwriting, exclusions and what you must disclose
• 1.4 Break down the premiums you pay today

Module 2: Size life cover from the people who depend on you

Work out how much life cover your household needs from its actual costs and debts, subtract the cover you already have, and set the term to match your dependants and your loan.

• 2.1 Needs-based cover beats a multiple of salary
• 2.2 Subtract what already covers you: DPS, HPS, group plans and savings
• 2.3 Set the term from your youngest dependant and your loan
• 2.4 Build your sum assured sheet

Module 3: Choose between term, whole life and ILPs

Understand how whole life and investment-linked policies are priced, read an illustration from first page to last, and compare them with term cover plus separate investing on the same money.

• 3.1 How whole life is priced and where bonuses come from
• 3.2 Read a whole life illustration from first page to last
• 3.3 Inside an ILP: units, charges and the cost of cover with age
• 3.4 Buy term and invest the rest, modelled honestly
• 3.5 When permanent cover is the point
• 3.6 Compare three structures on the same premium

Module 4: Pick hospital cover you can keep paying for

Understand how an Integrated Shield plan and riders sit on top of MediShield Life, compare plans on ward class, co-payment and panel rules, and check you can afford the premiums as you age.

• 4.1 How a shield plan sits on top of the national basic cover
• 4.2 Ward class, panel doctors and pre-authorisation
• 4.3 Deductibles, co-insurance and the co-payment riders must keep
• 4.4 Premiums at 30, 50 and 70: can you keep paying
• 4.5 Compare three shield plans for your ward choice

Module 5: Cover a serious illness with the right definitions

Understand how critical illness cover pays, what the standard definitions decide, how early-stage and multi-pay plans differ, and whether a claim reduces your life cover, then size your own.

• 5.1 Critical illness cover pays a lump sum on diagnosis
• 5.2 Severe, early and multi-stage: what the definitions decide
• 5.3 Accelerated or standalone: does a claim shrink your life cover
• 5.4 Size your critical illness cover in years of expenses

Module 6: Protect your income if you cannot work

Understand disability income insurance, the definitions that decide whether it pays, and long-term care cover under CareShield Life and its supplements, then map your income protection.

• 6.1 Disability income insurance replaces a monthly pay cheque
• 6.2 Own occupation, deferment and benefit period
• 6.3 Long-term care: CareShield Life and what supplements add
• 6.4 Map your income protection and its gaps

Module 7: Buy, switch and review without getting burned

Know how advisers are paid and what they must tell you, why replacing a policy usually costs you, what to do if you were mis-sold, and when to review, then write your household insurance plan.

• 7.1 How advisers are paid and what they must tell you
• 7.2 Why replacing a policy usually costs you
• 7.3 Free-look, complaints and what to do if you were mis-sold
• 7.4 When to review your cover as life changes
• 7.5 Write your household insurance plan and adviser brief

Frequently asked questions

How long does the course take?

About seven hours of lessons and exercises. Collecting your policy documents before you start saves time, because most exercises use your own policies.

How is this different from Read the fine print and The Singapore personal finance system?

Read the fine print: payslips, statements, policies and contracts teaches you to read the documents you have. The Singapore personal finance system, end to end gives you the basics and a gap list. This course explains how each product is priced and how to size and choose your cover.

Will the course tell me which policy or insurer to buy?

No. It teaches you how to work out what you need and how to compare what you are offered. No insurer or product is recommended.

Is this financial advice?

No. The course is education and does not replace financial advice. Premiums, limits and scheme rules change, so check current details with MOH, CPF, MAS and your insurer, and speak to a licensed financial adviser about your own situation.

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