How to Compare Insurance Policies Like a Pro
Most people compare premiums. Smart policyholders compare definitions, exclusions, and payout conditions across their life and health insurance policies. Here is how to do it properly.
Stop comparing premiums first
It is tempting to go straight to the premium cost when comparing insurance policies. Lower premium means better value, right? Not necessarily. A lower premium often reflects a narrower definition of covered conditions, higher staging thresholds for payout, or more exclusions.
The premium should be the last thing you compare — after you have satisfied yourself that the coverage is equivalent or better.
Start with the condition definitions
For life and health insurance policies, the 37 LIA standard conditions form a baseline. But insurers add additional conditions on top of this — some cover 100+ conditions. The question is not just how many conditions are covered, but how they are defined.
Get the policy documents of two or three plans you are comparing. Use InsureIQ to upload each one. Run the LIA compliance check. Then compare the results side by side — InsureIQ's comparison tool will show you the differences.
Pay particular attention to: cancer definitions, heart attack definitions, and stroke definitions. These are the three most commonly claimed conditions in Singapore.
Check the benefit structure
Does the policy pay a single lump sum on one claim? Or does it offer multi-stage or multi-pay benefits?
Single-pay: One claim, one payout. Policy ends.
Multi-stage: Different payout percentages for early, intermediate, and major stages of the same condition. For example, 25% for early-stage cancer, 100% for major-stage cancer.
Multi-pay: Can pay out for multiple separate conditions (e.g., cancer and then later a heart attack). Some plans allow multiple payouts for the same condition at different stages.
Multi-pay plans cost more in premiums but provide significantly broader coverage. For most people under 50 with a family, the additional premium is worth considering.
Read the exclusions and waiting periods
We have covered these in detail elsewhere on The Fine Print. But in the context of comparison: if Plan A has a 90-day waiting period and Plan B has a 12-month waiting period for the same cancer, that is a meaningful difference — especially if you are switching policies and will have a gap in effective coverage.
Consider the insurer's track record
An insurance policy is only as good as the insurer who writes it. In Singapore, all life insurers are required to maintain adequate capital reserves and meet LIA standards. However, claims processing speed, customer service quality, and dispute resolution track records vary.
Check published solvency disclosures and read independent reviews on financial forums. Ask your financial adviser for their experience with claims from different insurers.
The cheapest policy from an insurer with poor claims processing is not a bargain.
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