Must-Have Insurance Policies in Singapore

This post was originally posted on Planner Bee.

Life is unpredictable. Illness, accidents, or a sudden job loss can happen to anyone. That’s why planning ahead matters.

In Singapore, insurance plays an even bigger role in long-term financial security. With regulation from the Monetary Authority of Singapore (MAS) and basic protection through Central Provident Fund (CPF) schemes like MediShield Life and the Dependants’ Protection Scheme (DPS), you’re off to a decent start. But is that enough?

Let’s break down the main insurance policies worth considering.

Managing your medical costs with health insurance

MediShield Life

MediShield Life is Singapore’s basic health insurance plan provided by the government. It covers all Singapore Citizens and Permanent Residents for life, regardless of age or existing health conditions. The aim is to reduce the burden of major hospital expenses and specific high-cost outpatient treatments, like dialysis and cancer chemotherapy.

What it covers:

• Hospital stays: This plan is intended for subsidised treatment in public hospitals, especially in Class B2/C wards. While you can use it in higher-class wards or private hospitals, the payouts are based on public hospital rates, so you may have to cover additional costs yourself.
• Outpatient treatments: Covers specific treatments like dialysis and cancer care.
• Premiums: Fully payable with your MediSave. If your MediSave balance is insufficient, family members can assist by using their MediSave accounts.

Note: MediShield Life offers broad protection but may not fully cover private hospital bills or higher-class wards.

Read more: How MediShield Life Changes Will Affect Your Healthcare Costs

Integrated Shield Plans (IPs)

Integrated Shield Plans offer added coverage on top of MediShield Life. They’re ideal if you prefer private hospitals or higher-class wards in public hospitals. These plans have two parts:

1. MediShield Life: The basic coverage provided by the government.
2. Private Insurance: An add-on offered by private insurers. This component covers the costs of Class A/B1 wards in public hospitals or private hospital stays.

Key points:

• Customisable: Choose based on the type of hospital and ward you prefer.
• Premiums: MediShield Life premiums are fully payable using MediSave. For the private insurance component, MediSave can also be used, but only up to specified limits:Up to S$300 per year (age 40 and below) Up to S$600 per year (ages 41 to 70) Up to S$900 per year (age 71 and above)

Any amount above these limits must be paid in cash. Whether you’re new to IPs or considering a change, we’ve put together a clear and practical guide to walk you through everything you need to know. You can also submit your details to receive personalised quotations and see which plans might best suit your needs.

Life insurance for income protection

If you’re the main provider in your family, life insurance helps your loved ones stay financially secure if something happens to you. It offers either a lump sum or regular payouts in the event of death, total disability, or critical illness.

Term Life Insurance

This is the simplest and most affordable type of life insurance.

• Coverage period: Set for a fixed period, such as 20 or 30 years. Ideal for covering needs like your child’s education or a home loan.
• Premiums: Lower than whole life insurance.
• No cash value: If nothing happens during the term, there’s no payout. It’s pure protection.

Example: If you’re 35 and purchase a $500,000 term policy for 25 years, your family will receive the payout if you pass away during that period. If you outlive the term, the policy simply expires with no payout, but you would have had peace of mind at a lower cost.

Looking for simple and cost-effective life cover? Term life insurance offers coverage of key financial responsibilities such as your mortgage, household bills, or children’s education for a fixed term. Check out our complete guide to understand your options, or request a personalised quote. We’re here to help every step of the way.

Whole Life Insurance

This offers lifelong protection and includes a savings element.

• Coverage: As long as you keep up with your premiums, you’re covered for life.
• Cash value: Part of your premium goes into savings or investment. You can borrow against it or withdraw later.
• Premiums: Higher than term plans, but it also acts as a long-term financial asset.

Example: Buy a $300,000 whole life plan in your 30s. Over time, it builds value and offers protection for life. You can also access part of the funds in future if needed.

Whole life insurance provides lifelong coverage along with a savings component. Our complete guide to whole life insurance explains everything from policy structure to cash value accumulation. You can also request a personalised life insurance quote and compare your options.

CareShield Life helps you manage long-term disability

CareShield Life is a government scheme that provides monthly payouts if you become severely disabled and need help with daily activities.

What it covers:

• Monthly payouts: Start at S$624 per month (as of 2025) and increase over time.
• Eligibility: Mandatory for Singaporeans born in 1980 or later. Optional for those born earlier.
• Supplements available: You can enhance your monthly payout with private insurance add-ons.

Example: If you’re 45 and develop a serious disability, CareShield Life provides monthly cash support. With supplements, this could rise to over S$1,000 per month to help with your care needs.

CareShield Life offers monthly financial support if you face severe disability and need help with daily living. It’s a key part of long-term care planning in Singapore. Discover how the scheme works, who it covers, and how to boost your coverage with CareShield Life supplements. You’ll also have the option to submit your details and explore personalised quotations, all in one place.

Critical illness insurance provides support during long recoveries

A serious illness can put both your health and finances under pressure. Critical illness insurance offers a lump sum payout to help ease the financial strain during recovery.

Why does it matter?

This type of insurance covers major illnesses like cancer, stroke, and heart attack. The payout can help cover medical costs or replace lost income while you’re unable to work.

What to consider?

• How many illnesses does the policy cover?
• Are early-stage conditions included?
• Does it suit your current lifestyle and financial obligations?

Critical illness cover can provide vital financial assistance when you need it most. If you’re thinking about this type of insurance, it’s important to find a plan that matches your needs. Request for a personalised quote and see what coverage options are available for you.

Read more: I Already Have Hospitalisation Insurance. Why Do I Need A Critical Illness Plan Too?

Protection for the unexpected with personal accident insurance

Accidents happen when you least expect them. Personal accident insurance offers financial support if you’re injured or worse due to an accident.

Why is it useful?

It fills the gaps where regular health insurance may fall short by covering things like fractures, burns, and concussions.

Who is it for?

Ideal for active individuals, parents, seniors, and anyone who travels often. It adds a layer of protection for everyday risks.

Affordable and straightforward

Premiums are generally low. Some plans cost just a few dollars a month, depending on your age and the coverage.

Claims are usually simple, providing fixed payouts for specific injuries, like a broken bone or stitches.

Personal accident insurance is a practical and affordable way to stay protected against everyday risks. If you’re considering this type of coverage, you can request for personalised quotations tailored to your needs and lifestyle.

Read more: Do I Need a Personal Accident Plan if I Already Have Life Insurance?

Safeguard your place with home insurance

HDB Fire Insurance

If you’ve taken a loan from HDB, this is mandatory. It covers internal structures, fixtures, and fittings provided by HDB in case of fire.

Limitations

It doesn’t cover your renovations, furniture, personal items, or damage to neighbouring units.

Read more: What Does the HDB Fire Insurance Scheme Cover and Is It Enough?

Comprehensive Home Insurance

For fuller protection, consider a comprehensive plan.

• Renovation cover: Includes built-in furniture, air-conditioners, and flooring.
• Contents cover: Protects your belongings like furniture, electronics, and clothes.
• Third-party liability: Helps cover costs if your home causes damage to others, such as a burst pipe affecting your neighbour’s ceiling.

If you’ve renovated or own valuable items at home, basic HDB fire insurance likely isn’t enough. Check out our comprehensive guide on home insurance and explore your personalised options to fully safeguard your home and belongings.

Home Protection Scheme (HPS)

HPS is linked to your CPF housing loan. It pays off your HDB loan if you pass away or become permanently disabled.

Who needs it?

Most CPF housing loan users are automatically covered unless exempted by another private insurance plan.

Read more: Mortgage Insurance: All You Need To Know About Home Protection Scheme

Every trip needs travel insurance

Travel insurance can protect you from costly problems when you’re overseas. It’s something worth arranging before you fly, whether you’re off for a holiday, business trip, or quick weekend escape.

Common coverage areas

• Medical treatment abroad: Includes hospital stays, doctor visits, and emergency evacuation.
• Trip cancellations and delays: Covers lost bookings due to emergencies or travel disruptions.
• Lost or stolen baggage: Provides compensation for personal items, documents, and essentials.

Read more: Travel Insurance: Do I Really Need It and What Should I Take Note Of?

Frequent flyer tip

Travelling more than three times a year? An annual multi-trip policy can save you time and money.

• Cost-effective: One premium covers multiple trips.
• Convenient: No need to buy insurance each time.
• Flexible: Choose between regional or global coverage.

Not sure which travel insurance plan is right for you? Our detailed travel insurance guide explains the different cover options, including a personalised travel insurance quote to make your holiday planning simple and stress-free.

Conclusion

Insurance helps you prepare for the unexpected and gives you peace of mind as life changes. Whether you’re buying a home, starting a family, or planning for the future, your insurance should grow with you.

Review your policies regularly to make sure they still meet your needs. You might also want to speak with a licensed adviser or use a comparison tool to explore your options. The right cover can make a big difference and let you focus on living, not worrying.