Last Updated on July 4, 2024 by Tree of Wealth

In our series of case studies, we aim to clarify the underwriting process and its varying requirements, which can differ based on the insurer, the applicant’s risk profile, and the specific type of coverage sought. These case studies are designed to illustrate a range of possible underwriting outcomes, shedding light on how personal information and unique factors are evaluated by insurers.

Understanding the different types of insurance coverage available can help you make informed decisions about protecting yourself and your loved ones.

Brief Overview Of Primary Insurance Covers

Life (Death) Cover: Life insurance provides financial security by paying out a lump sum either upon the death of the insured or when the policy matures. This type of insurance is crucial for ensuring your family’s financial stability in your absence and can come in forms like whole life policies or endowment plans.

Critical Illness Cover: This insurance pays out upon the diagnosis of a critical illness specified in the policy. The range of illnesses covered can vary significantly between insurers, making it essential to understand the specifics of your policy.

Total and Permanent Disability Cover (TPD): TPD insurance offers financial support if the insured becomes severely disabled and is deemed unable to ever work again. Definitions of what qualifies as ‘total and permanent disability’ can differ, so it’s important to review these details within your policy.

Hospitalisation Cover (Health Insurance): Health insurance is designed to offset medical expenses due to injuries or illnesses. In Singapore, all citizens and permanent residents are automatically covered by MediShield Life, which caters for significant hospital bills and selected outpatient treatments in public hospitals. For those seeking enhanced coverage, such as for private hospitals or higher-class wards, an Integrated Shield Plan (IP) is advisable.

It’s important to note that the underwriting outcomes depicted in these case studies are not exhaustive and do not represent all possible scenarios across different insurers. Additionally, a past underwriting outcome does not guarantee the same result in a future case, as each application is assessed on its own merits.

For the case studies focused on “Hospitalisation Cover,” Integrated Shield Plan (IP) coverage is referred to (AS PER THE GUIDE). To visually represent the range of possible underwriting outcomes, a “Traffic Light illustration.” is employed. This method categorizes outcomes into several types, not limited to a single specific result:

• Green: Represents the best possible outcome, such as being approved at standard rates without any extra premiums or exclusions.
• Yellow: Indicates standard rates but with certain exclusions added to the policy.
• Orange: Signifies that extra premiums are payable due to elevated risks identified during the assessment.
• Red: The most severe outcomes, including the potential rejection of coverage or a postponement of the decision until further information can be obtained or conditions change.

This color-coded system helps potential applicants understand the spectrum of underwriting decisions and prepare for the range of possibilities when applying for insurance coverage.

Each type of insurance plays a pivotal role in comprehensive financial planning, ensuring that you’re prepared for life’s uncertainties. If you’re unsure about the kind of coverage that best suits your needs, filling out the form below to consult with our financial advisors is an excellent start.

Our experts are here to guide you through your options, helping you to not only understand but also maximize your insurance benefits. Secure your future today and feel empowered knowing you are well protected.