Here Is What You Need To Know About Microinsurance

Many people hesitate to buy insurance products because of financial constraints. Yet as we do know, having the protection of insurance is extremely essential. So, how does one bridge the gap between wanting coverage and not being able to comfortably afford it? 

The answer lies in microinsurance. 

If you are hearing about microinsurance for the first time, don’t worry for you are not alone. A lot people are not too aware of what microinsurance is and how it benefits you. Let’s gain a better understanding, shall we…

What is microinsurance? 

Microinsurance is a type of insurance that offers you bite-sized coverage for premiums that are more affordable than mainstream insurance products. The affordability of microinsurance helps more people get protection and insurance coverage to stay safeguarded against unforeseen circumstances. 

What types of products can be purchased as microinsurance?

Leading insurance companies in Singapore offer microinsurance products that can serve to enhance the protection you already enjoy from your main plans. 

Let’s look at an example. As a Singaporean citizen or Permanent Resident, you are covered for medical expenses through MediShield Life or your Integrated Shield Plan (IP). However, you might also want to enhance your protection against specific diseases or conditions. Let’s say you want to stay covered against dengue fever. In this case, you would opt for a dengue insurance plan that will give you a lump sum payout in case you are diagnosed with dengue fever. That payout can supplement the coverage for hospitalisation expenses that you will receive from your health insurance plan. 

What does microinsurance cost?

As stated earlier, one of the main advantages of microinsurance is that it is an affordable form of coverage. Let’s look at the approximate cost of common microinsurance plans. A microinsurance plan for breast cancer insurance would generally cost you from around S$9 for coverage for 12 months.  This premium is based on a female non-smoker, aged 20 to 25 years (age next birthday) and will coverage of S$10,000 for all stages of breast cancer. For men, prostate cancer insurance is an important consideration, given the high rates of this form of cancer in Singapore. A prostate cancer insurance plan can cost from around S$5 for coverage for 12 months. The premium is based on a male non-smoker applicant who is 20 to 25 years old (age next birthday). The coverage gets the policyholder a payout of around S$10,000 upon diagnosis of any of the stages of prostate cancer.

These prices give us an overview of the affordability of microinsurance premiums. 

How can I buy microinsurance?

Insurers these days are listening more than ever to consumer needs and responding with relevant insurance products. Moreover, they also aim to bring more convenience to the entire process of purchasing insurance. As a result, you can now get insurance products at your fingertips. Microinsurance plans are available for purchase on insurance providers’ websites. Many insurers in Singapore have also made their microinsurance plans available on smartphone health and wellness apps. You simply need to download the app, fill up a quick form, and start your coverage – a process that is entirely hassle-free!

Go ahead and explore microinsurance plans today for wholesome protection. Talk to a financial consultant for further help in selecting suitable insurance plans. Good luck!