Advise about Insurance

[THEMIKOS]

Hello, hopefully i posted in the correct thread. Want to know the difference between Life and Hospitalization Insurance.

My knowledge: if i buy any insurance from a company the payouts are limited. For example, say i buy hospital insurance From company A to cover me up to $10k (Premium $10 a month) and from company B to cover me up to $15k (premium $15). Something happens to me and my claim is max $15k only and NOT (10+15) $25k. Premiums payable are just a fictional number for description purpose. So for $25 a month i am covered up to $15k only while if i just had bought from company B i would still be covered for $15k by just paying $15 a month. The key here is both companies will share the first 10k payment and the other 5k will be topped up by company B. This was my thinking all along.

Today learned something new. That the above scenario applies ONLY to hospitalization plans.
Life insurance and critical plans are paid according to each individual policy. Meaning if company A covers me 1mil and company B covers me 1.5mil, the total payout will be 2.5mil, and NOT 1.5mil.

Can someone kindly verify this 2.5mil payout for me please? TIA.

 

[boredboiboi]

Hello, hopefully i posted in the correct thread. Want to know the difference between Life and Hospitalization Insurance.

My knowledge: if i buy any insurance from a company the payouts are limited. For example, say i buy hospital insurance From company A to cover me up to $10k (Premium $10 a month) and from company B to cover me up to $15k (premium $15). Something happens to me and my claim is max $15k only and NOT (10+15) $25k. Premiums payable are just a fictional number for description purpose. So for $25 a month i am covered up to $15k only while if i just had bought from company B i would still be covered for $15k by just paying $15 a month. The key here is both companies will share the first 10k payment and the other 5k will be topped up by company B. This was my thinking all along.

Today learned something new. That the above scenario applies ONLY to hospitalization plans.
Life insurance and critical plans are paid according to each individual policy. Meaning if company A covers me 1mil and company B covers me 1.5mil, the total payout will be 2.5mil, and NOT 1.5mil.

Can someone kindly verify this 2.5mil payout for me please? TIA.

Yes hospitalisation only covers up to your bill.
Other coverage like death, disability, critical illness and so on plan is each individual company that you bought. Your example of 2.5million is correct, but also subject to their claim limit.
And for local hospital plan, you only can buy 1.

 

[THEMIKOS]

I see. Thank u for your advise.

Yes hospitalisation only covers up to your bill.
Other coverage like death, disability, critical illness and so on plan is each individual company that you bought. Your example of 2.5million is correct, but also subject to their claim limit.
And for local hospital plan, you only can buy 1.

 

[BBCWatcher]

Disability Income Insurance (DII) is another type of insurance that's "coordinated." In Singapore you can buy DII to replace up to 75% of lost income (due to work disrupting disability), but that's as high as you're allowed to go.

 

[boredboiboi]

I see. Thank u for your advise.

You are welcome. And dont worry. Alot of people mess this up as well.