What to check before you buy insurance

Buying insurance can feel like ordering food from a menu written in a foreign language - you recognise a few words here and there, but you're mostly just pointing at something and hoping it's what you actually need. Every agent says their plan is ‘comprehensive’, every brochure looks the same, and everyone you ask gives different advice.

So how do you cut through the noise?

Whether you're buying your first policy or adding to your coverage, it’s all about knowing what to check before you commit. The fine print matters, but so does how it fits your lifestyle, your goals, and your wallet.

This guide will help you make confident, informed choices - no financial jargon, no upsell vibes.

Use these tools first:

1. compareFIRST.sg An official site by the government and insurers to help you compare life insurance and savings plans. You’ll see product types, premiums, coverage amounts, and even surrender values side by side - no fluff.
2. CPF Health Insurance Planner Need help choosing the right health insurance? This handy tool shows how different plans affect your costs. It also helps you compare various private Integrated Shield Plan options to find what works best for you.

What to look out for:

1. Coverage amount Does it actually meet your needs? $50k might sound like a lot, but not if your hospital bill is $12k and your income loss lasts 6 months.
2. Premiums vs budget Can you afford it long term? Remember: it’s not a one-time payment - it’s month after month. Stick to that 15% of take-home pay rule of thumb.
3. Policy exclusions This is the stuff your policy doesn’t cover. Pre-existing conditions? Certain high-risk activities? Better to know now than when you’re desperately trying to make a claim.
4. Claim process Some insurers make you jump through hoops. Look for ones with a clear, fast claims process by checking online reviews or asking around.
5. Riders Add-ons that increase coverage or reduce your out-of-pocket costs. While riders are useful, don’t get upsold unless you really need them.

Example:

You’re looking at two critical illness plans. One offers $100k coverage for $40/month. Another offers $150k for $55/month but has a long list of exclusions and a complex claims process.

It makes financial sense to choose the cheaper plan. But if your family has a history of cancer, the pricier one with broader coverage might be worth the extra few bucks.

Bonus tip:

Your old JC or poly classmate just became a financial advisor and is now sliding into your DMs and saying things like, ‘I got a good deal for you. Don’t say I bo jio.’ It’s tempting to help a friend trying to hit his sales targets, but your coverage should fit your needs, not someone else’s quota.

Also, ask about service fees and how your agent earns their income. Some get commission for each policy sold, so it’s ok to double-check if part of your premium goes to them. A good agent will be upfront and honest, and won’t pressure you to buy.