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Insurance Riders in Singapore | Different Types of Insurance Riders

Health Insurance | Insurance | Life Insurance
by Priyadarshini 18 January 2023

Are you looking for the best insurance policies? Want to buy insurance policies in Singapore? You can get the best deal with add-on insurance riders. In this blog, we tell you about insurance riders in Singapore. What are they, do you have to pay for them, and do you actually need them?

What are Insurance Riders?

Insurance riders are add-ons that can be added to your insurance policy. A rider adds additional benefits to the original plan’s protection. When comparing insurance plans, it is vital to compare insurance riders as well. Keep in mind that riders are not for free! The rider’s fee is added to your overall premium. Health and Life insurance riders are the most commonly bought riders. Also, you get similar benefits.

Medical Insurance Riders?

Medical Insurance riders are the Integrated Shield Plans (IPs). IPs are hospitalization insurance plans that work with MediShield Life. The Singaporean government provides this basic health insurance scheme to all Singapore citizens and PRs. IPs cover the majority of your medical expenses if you are hospitalized. The plan will cover the majority of your hospital bills, as well as related outpatient costs such as your regular doctor visits. Not to mention only if they are incurred within a certain time frame.

However, IPs in Singapore will not cover 100% of your costs. Also, before you can file a claim, you must pay a “deductible” in one lump sum. That isn’t all! You also have to pay a part of the bill. This is called “co-payment.” It prevents people from being hospitalized just for the sake of it or from requesting to be checked into the most luxurious hospital suite. IP riders typically focus on lowering the deductible and co-payment portion of your hospital bill. Making your out-of-pocket costs to be as less as possible.

Riders with Total and Permanent Disability (TPD)

Life insurance riders supplement your basic policy’s coverage. This means you can receive a payout in scenarios other than the ones specified in your basic plan. For example, many life insurance only payout in the event of death or a terminal illness diagnosis. The insurer usually provides an optional rider that allows you to receive a payout if you suffer a total and permanent disability (TPD). With TPD rider you have the guarantee to receive your sum assured when diagnosed with TPD. You can use this amount to provide for your family.

Life Insurance Riders in Singapore

Life insurance provides financial support to your family if you die or are unable to work. The policy includes a sum assured, which is an amount that will be paid out in the event of your death. It is usually in the form of a lump sum amount. Some policies will also cover you if you suffer from total and permanent disability or a terminal illness. Term life insurance is the most basic type of life insurance. And it simply provides life insurance protection for a set period of time. Another type of life insurance is whole life insurance, which covers you for the rest of your life or until you reach a certain age, such as 99 or 100. Whole life insurance also builds cash value over time.

Critical Illness Rider

Critical illness riders operate similar to TDP riders. They provide you with additional coverage and extend your life insurance payout to when you are diagnosed with a critical illness. You will receive a lump sum payment if you are diagnosed with a critical illness covered by the plan. For instance, conditions such as heart attack or terminal cancer are typically covered.

Getting a critical illness rider is a good idea, as it covers all your bases. However, some life insurance policies may become null and void if you receive a critical illness payout. That means you won’t be able to get a life insurance payout after you’ve received your critical illness payout. This varies depending on the policy. You have to carefully read the fine print.

What is a Good Insurance Riders in Singapore?

We recommend an IP rider is the best choice in Singapore. The differences in out-of-pocket medical costs between plans with and without riders can be significant. So, it’s worth paying a little more to get a lower deductible and co-insurance payment. Copayment riders are available from all seven IP providers. However, keep in mind that all IP riders must be paid for in cash. You can include TDP coverage for life insurance policies. There are two ways to do it, either you can purchase an add-on TDP rider or buy a life insurance policy that already has TDP coverage.

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Tags:
critical health insurance
health insurance
insurance riders
life insurance
Singapore
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