Introduction
Insurance mistakes don’t show up immediately — but when something happens, they become painfully expensive.
Here are 7 common insurance mistakes Singaporeans make, and how you can avoid them.
1. Buying Only Based on Price
Cheapest ≠ Best.
Low premiums often mean:
- Lower coverage limits
- More exclusions
- Higher claim rejection risk
Focus on value and protection, not price alone.
2. Depending Only on Company Insurance
Corporate coverage:
- Ends when you resign
- Is usually basic
- May not cover dependents
Personal insurance ensures continuous protection, regardless of job changes.
3. Not Reviewing Policies Regularly
Life changes — marriage, kids, new house, income growth.
Your insurance should evolve too.
Review every 1–2 years to stay properly protected.
4. Ignoring Critical Illness Coverage
Critical illnesses often result in:
- Long recovery periods
- Loss of income
- High non-medical expenses
Medical insurance alone may not be enough.
5. Over-Insuring or Under-Insuring
Too much = unnecessary expenses
Too little = serious financial risk
Proper planning ensures optimal coverage without waste.
6. Not Declaring Medical History Properly
Incomplete disclosures can lead to claim rejection.
Always declare truthfully — it protects your claims.
7. Not Getting Professional Advice
DIY insurance planning often results in coverage gaps.
A professional advisor helps:
- Identify risks
- Structure coverage properly
- Optimise premium efficiency
Final Thoughts
Good insurance planning prevents financial stress before it happens.
At Lodras Insurance Agency, we believe in educating clients, not selling blindly. Our goal is simple — protect what matters most, with clarity and confidence.
