One of the most popular real financial questions people frequently ask (when we say real, we’re ignoring questions simply asking “how to make more money?”) is whether or not they have enough insurance coverage.
It is never easy to answer this question, especially since there is no fixed response due to each individual’s differing situation and requirements. Furthermore, the coverage you need as an individual is always changing as you enter different life stages.
One simple way to understand your insurance needs is to complete a needs assessment exercise with an insurance agent or independent financial advisor. This person will sit down with you to work out your financial requirements, including how much money you would need in the event of an accident which leaves you unable to work, or if you are no longer around to support your family.
It’s basically a grim but unavoidable discussion that we all need to have. At the same time, the agents we talk to may have their own sales agenda during the discussion.
It’s similar to going to a car workshop for a routine maintenance check only to have the mechanic try upselling you expensive parts under the guise that your vehicle needs urgent part replacements due to wear and tear or damage.
Most individuals in this situation would have little to no information about how accurate or genuine this assessment is.
If you are not keen to face a 2-hour sales pitch, here’s an easy alternative you can consider – an online Do It Your-way Insurance (DIYInsurance) Selfcheck. This selfcheck helps you to assess your existing insurance coverage and needs as well as detail how you can cover for them.
Launched by Singapore’s 1st Life Insurance Comparison platform DIYInsurance, DIYInsurance Selfcheck aims to help you find the most suitable insurance policies based on your needs in less than 3 minutes. Here’s how it works.
Step 1: Go to the DIYInsurance website. Click on the DIYInsurance Selfcheck link.
Step 2: Indicate if you are doing this check for yourself or your child.
Step 3: Fill in some basic information (i.e. gender, date of birth, income)
To run you through this assessment with an example, we will assume a respondent being a 30-year old male, with annual income of $36,000 (i.e. $3,000 a month).
Step 4: Consider some of your basic needs
At this point, it’s time to consider some of your basic life insurance coverage needs. For this step, you are trying to estimate coverage that your family will need in the unfortunate event that they are no longer able to rely on your income.
The inputs are fairly simple. It includes how much of your current income your family rely on, the number of children you have and how long more you need to support them. It also includes current loans and assets that you have such as your home loan, car loan, savings and CPF.
Step 5: Your Healthcare Needs
This is a straightforward step. It asks of your employment status and your healthcare expectations. This is in an event you are hospitalised.
Step 6: Fill In Your Existing Coverage
At this stage, Do It Your-way Insurance (DIYInsurance) Selfcheck provides an overview of your key protection needs based on your earlier inputs. These include death coverage, critical illness, disability income and healthcare.
If you have some existing insurance policies, key in the coverage that you are insured from these policies. The aim here is to be adequately covered, not over- or under-insured. From the inputs above, you can see that in our example above, our assumed user already has reasonable coverage.
Step 7: Get Quotes From The Best Policy
DIYInsurance is able to compare and recommend the best policies from different insurance companies that most closely match your requirements.
It’s worth mentioning that the platform is forthcoming in highlighting that these policies are the “Closest Matches for Consideration”, rather than it being a precise quote. For example, you may recall that our death coverage shortfall was only $100,000 while the policy above assumes a sum assured of $500,000.
If you want to get an exact quote on your coverage shortfall, you can enquire with them.
An Easy Way To Get Started
DIYInsurance Selfcheck provides you with a quick and simple way to get a sense of the gaps in your current coverage. When you submit an enquiry, a dedicated DIYInsurance adviser will be assigned to you to run through with you your needs and put the finishing touch to your insurance plan.
You can speak to them via webchat/email/phone or arrange a face-to-face meeting with one of DIYInsurance’s salaried-based advisers. Their advisers are licensed by MAS and they are not remunerated by commissions hence there is no incentive for them to hard-sell or over-sell any products.
In addition, when you purchase with DIYInsurance, they provide you with a 50% commission rebates on your policy so this allows you to lower your cost on your insurance purchase.
We think that DIYInsurance Selfcheck is a wonderful tool that is easy to use. Have a go at it, it’s free!