Asked by Anonymous
Asked on 21 Aug 2018
I feel that getting different insurance from different insurers will help to reduce the premiums significantly. Would like to know if there are any disadvantages of doing this though?
It's usually more straight forward to buy all insurances from 1 company but I agree that you may be able to save costs by getting policies from different companies since not all policies are made equal (in terms of $ or coverages).
I personally am doing that and think there's no big disadvantage apart from the fact that you may have to familiarize yourself with how each companies do claiming in case your FA are not around when you need them most.
On the contrary, it is more likely to cost more if u buy 2 same coverage-type from 2 insurer. There will typically be 'discount' for larger coverage purchase. Assuming you are buying your coverage at once. But if u are bought from insurer A, buying from insurer B is not much difference.
There are circumstances/strategy that will require buying from different insurers. But normally, it is advisable to buy from same insurer. Easier for u to too. If u want to learn more do ping me.
I think it should be ok. What you provided is that you get a different category of insurance from different insurer. Usually the trigger for each of these are different, so the administrative cost to handle them should be manageable.
There are the odd cases where you will claim more than one category. In that case, you might need to do more legwork, if you do not have an advisor
The upside as you have mentioned is perhaps cost savings.
However, I highly doubt that the cost savings would be significant since premiums are pretty competitive across various insurers. Would be good if you could take a look at the fine print, especially so if the cost savings are significant.
One downside is perhaps the ease of claims due to having multiple policies across various insurers. Hence, do spend some time with your advisor to come up with a summary of your policies so that it would be easy for yourself and your family members when something unfortunate happens.
Should you like a sample of an overview, do drop me an email at [email protected]