When reading up on insurance, you might have come across the term ‘microinsurance’. Microinsurance refers to bite-sized insurance products that offer affordable insurance coverage for a variety of needs.
Microinsurance can help widen the reach of insurance to the masses since it is usually affordable and easily purchased. In this article, we take a look at 4 benefits of microinsurance.
1. Plans with specific coverage
Microinsurance plans often have very targeted coverage. For instance, you may not be able to purchase a microinsurance product providing coverage as wide as health insurance. However, you can purchase very specific forms of accident and health coverage in the form of microinsurance such as dengue insurance or breast cancer insurance for yourself or your loved ones.
2. Affordable means of getting insurance
Microinsurance products are bite-sized insurance plans and they cover specific conditions or situations. Indeed, affordability is one of the main features of microinsurance. As microinsurance plans are affordably priced, costs do not stand in the way of you getting coverage.
Let’s look at an example of what microinsurance may cost you. A prostate cancer insurance plan can cost from S$5 for coverage that lasts 12 months for a male, non-smoker aged 20 to 25 years (age next birthday). The low price is easy on your wallet and can increase your protection easily.
3. Enhances and fills gaps in your coverage
Already have health insurance but want coverage specifically for dengue? Or, perhaps you want to keep yourself covered against the side effects of the COVID-19 vaccine. Have critical illness insurance but want an additional boost of coverage against the top female cancer1? You can enhance your coverage against breast cancer with microinsurance. Microinsurance can help you build a more holistic insurance portfolio at a cost that does not burn a hole in your pocket.
4. Suitable for anyone new to insurance
One key factor of microinsurance is that the plans are simple and easy to understand. Even if you are buying insurance for the first time, you can easily understand the coverage offered. Most leading insurers in Singapore allow you to buy their microinsurance plans from their websites where you can read the plan’s fine print in detail for better understanding. You can also buy microinsurance from the insurer’s application (app). Some insurance providers are known to have their own health apps through which they offer users health and fitness tips. These apps can also be used to purchase microinsurance products as well. So, even if you are buying coverage for the first time, purchasing microinsurance will not leave you baffled and bewildered. Simply download the app, complete a health declaration and pay a nominal charge for coverage – it’s really that simple.
Do remember to always do your research well before buying microinsurance plans. Read more here.
This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Financial Consultant before making a commitment to purchase a policy.
Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs.
Premiums are not guaranteed and may be adjusted based on future claims experience.The information contained on this article is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
Information is correct as at 31 May 2021.
This advertisement has not been reviewed by the Monetary Authority of Singapore.