Monday, December 27, 2010

Singapore Insurance, Insurance in Singapore

Singapore Insurance, Insurance in Singapore

According to the Department of statistics Singapore, there is more collections of premiums from Life and general Insurances, which have contributed 11.8 percent increase in business receipts of insurance services during first quarter of 2005.This was in contrast to the decline of 13.4 percent recorded in the previous year.

According to the Insurance development data 2003,total industry Assets of insurance in Singapore was $77,406.4 Million. Per capita Expenditure on Life insurance was $ 2,963and per capita Expenditure on General insurance was $ 682.

Life Insurance In Singapore

Generally peoples of Singapore purchase Life insurances keeping in view the following points.

    * Having financial care of the survivors.
    * Paying off any outstanding debts - a mortgage, other loans, credit card balances etc.
    * Providing money in the event when you are diagnosed with a dread disease or terminal illness some policies will advance you part or all of the death benefit so that you can fill in for lost income, get the special treatment you want, spend quality time with your family, etc.
    * Paying estate taxes and other settlement costs - wherever they have to be paid.
    * Providing educational funds for your children or grandchildren.
    * Supplementing your retirement income - life insurance can often accumulate tax-sheltered.
    * Making charitable donations.

There are mainly three types of personal life insurances used in Singapore

Term Insurance

This can be used in renting an apartment. It builds no equity within the policy. If the concerned person stops paying premiums, the coverage ends. And just like the rental lease upon an apartment, the premiums can increase after the initial term of the policy ends. But, in the short term it offers the highest amount of coverage for the lowest cost.
Whole Life Insurance

This is like buying a house. The upfront costs and annual premiums are usually higher than term insurance but those premiums are generally fixed throughout the term of the policy. Most whole life policies offer a build-up of equity within the policy with significant tax advantages in that build-up.

Universal Life Insurance

This is a flexible combination of Term and Whole Life. It has many of the features and minimal premiums of a term policy, and yet offers flexibility to increase those premium payments and accumulate equity using some of the features and advantages of a whole life policy.

According to Life Insurance Data 2003 total new businesses, which constitute the total numbers of policies, were 637,346,total sums insured $39,029.2 Million and annual Premiums $ 499.8 Million. Total premium incomes $10,183.8 Million.

Life Insurance Association Of Singapore

Life Insurance Association is a trade Association comprising twelve direct insurers and six reinsures who are licensed by the Monetary Authority Of Singapore (MAS) to transact Life insurance or Life reinsurance business in Singapore.

Its objective is to promote growth and development of the Singapore life insurance Industry.Keeping in view attaining manifold objectives the LIA undertakes various activities, which are as follows

    * The development of life insurance industry in consultation with MAS.
    * Promotion of Standards of industry practice.
    * Promotion of public awareness of Life insurance

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