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Common Insurance Mistakes Singaporeans Make — and How to Avoid Them

Even financially savvy Singaporeans make costly insurance mistakes — often without realising it until it’s too late. Here are some of the most common ones.

Person reviewing documents

Mistake #1: Buying Based on Price Alone

Cheapest does not mean best. Lower premiums often come with:

  • Higher deductibles
  • Limited claims coverage
  • Stricter exclusions

Always assess coverage adequacy, not just monthly cost.

Mistake #2: Not Reviewing Policies Regularly

Remaining at the same insurer does not means you will get the best offer. Policies should be reviewed every year, especially in Singapore’s fast-changing cost environment.

Mistake #3: Ignoring Policy Exclusions

Most disputes happen not because a claim was rejected unfairly, but because exclusions were misunderstood. Professional advice ensures you know exactly what is and isn’t covered.

How to Avoid These Mistakes

  • Work with a MAS-licensed insurance broker
  • Request regular policy reviews
  • Compare across multiple insurers
  • Focus on long-term suitability, not short-term savings
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