Is it wise to buy CI, term, accident and hospital insurance all from the same company? - Seedly
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Critical Illness (CI)

Hospitalisation Insurance (H&S)

Personal Accident Insurance


Asked on 07 Nov 2019

Is it wise to buy CI, term, accident and hospital insurance all from the same company?

Or should I look for a different company for each policy?


2 answers

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Answers (2)

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Hi anon,

There's no issue to buy from the same company, but if you are really worried, your policies are covered under the Policy Owners’ Protection (PPF) Scheme for up to S$500,000 for the guaranteed sum assured and S$100,000 for the guaranteed surrender value per life assured per insurer.

Furthermore, insurance companies re-insure the risk with reinsurance companies, as a second layer of safety. This is called risk pooling.

If you're still worried, then you might want to split up the coverage amongst two insurers or more.

What's more important is to find the right advisor to work with. Ensure that you are comfortable to share information with him/her so that the right decisions can be made in your interest.


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Hi Anon

I would say there’s not much of an issue.

However, I believe the reason why your are asking, is in the event that this company goes bankrupt.

If that is so, an insurance company going bankrupt is approximately the same as a bank going bankrupt. Insurance companies will take your pool of money, according to your age n risk category n type of plan, and they will invest the money.

There is also a group of people called reinsurers. Insurers will reinsure themself to reinsurers, so as to mitigate their risks.

However I personally feel that you should trust your financial advisor, find one that you are comfortable with.

He/she will be able to advise you better on the specific products, according to your needs


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