Before You Buy Insurance in Singapore: A 12-Point Checklist

First, a definition: what a pre-purchase checklist is and is not

A pre-purchase checklist is a 12-point self-check on a Singapore policy, done before you sign the application form, in which each point is tied to a rule or document that can be checked publicly. Its purpose is to let you know, before signing, what to ask and where to check. It does not judge whether a product is good, and it does not replace advice from a licensed adviser based on your personal circumstances. The 12 points fall into five groups in order, and a quick-reference table follows at the end.

How to use it: once you have the product summary and the benefit illustration, and before you sign the application form, go through the points one by one. Each point states where to check and what counts as a pass. For any point you cannot answer, ask the adviser or insurer for a written reply first, and only then decide whether to sign. Most figures in the checklist are rules of thumb or caps given in public sources and will change with regulation and products, so rely on the latest version from the publishing body.

Part 1. Needs and budget (points 1–2)

1. What problem does this policy solve

Write down in one sentence the problem to be solved: a family shortfall after death, hospital bills, income after a critical illness, cash flow after disability, or a savings goal. Then check whether a national scheme already covers part of it (see how national schemes fit with commercial insurance). Do not solve the same problem with two tools, and do not use one tool to solve problems of opposite nature, for example by putting an emergency fund that needs flexible access into a long-term policy that carries surrender costs.

2. Are the sum assured and the budget within a reasonable range

The Basic Financial Planning Guide (MAS and the industry, 2023-10-07) gives four rules of thumb. An emergency fund should cover at least 3 to 6 months of expenses (about 12 months for people with unstable income). Insurance spending should not exceed 15% of income after CPF contributions. Death and total and permanent disability cover should be about 9 times annual income. Standard critical illness cover should be about 4 times annual income (the guide notes this as LIA's suggested basis). The guide also notes that products with a savings component, such as whole life, may cost more than 15%. These are educational reference values, not regulatory requirements, and they are not your personal answer.

Part 2. Adviser, institution and the basis of the recommendation (points 3–4)

3. The institution and the adviser can be found in the MAS directories

Check the institution's name and its permitted activities in the MAS Financial Institutions Directory, and the adviser's name and institution in the Financial Institution Representatives Register. For a channel of unknown origin, you can check MAS's Investor Alert List (MAS, accessed 2026-10). The licence belongs to the institution, and a title on a business card is no substitute for the record in the register.

4. The adviser did a needs analysis and gave a written basis for the recommendation

Under Notice FAA-N16, the adviser must understand your circumstances, carry out a needs analysis and, before you sign the application form, provide a written document stating the information collected and the basis of the recommendation. If you decline to give the information the adviser asks for, or decide to buy a product the adviser did not recommend, the adviser must record your decision and warn you in writing that the responsibility for whether the choice is suitable is yours (MAS, version in force from 2025-12-29). If you choose a non-advised Direct Purchase Insurance (DPI) product, no adviser judges suitability for you, and no commission is charged (MAS, 2023-10-07).

Part 3. Documents, charges and disclosure (points 5–7)

5. You have the product summary and the benefit illustration, and you have found the split between guaranteed and non-guaranteed

Notice 318 requires insurers to prepare documents such as the product summary for each life policy, and the adviser must provide them to you (see how to read policy terms). The consumer guide from LIA and MoneySENSE (May 2020 edition) lists the documents you should obtain at the point of sale: Your Guide to Life Insurance, the product summary, the benefit illustration (where applicable) and the Product Highlights Sheet (for investment-linked policies). At the end of the sales process the adviser will also ask you to check and sign a disclosure checklist confirming that all the information due to you has been given, and you should go through it item by item before signing. First find the page that separates guaranteed from non-guaranteed values. Any figure marked as illustrated or projected is an assumption, not a promise.

6. You have seen the charges, the surrender value table and the size of the early-year loss

Find the surrender value table and check the gap between the surrender value and the premiums paid in the first few years. Then look at the Effect of Deductions and Total Distribution Cost columns in the benefit illustration (their meaning is covered in how to read policy terms). The first shows how much of the premiums paid has been absorbed by various deductions; the second shows the cost the insurer expects to pay to distribution channels, which is already included in the premium and is not an additional charge (LIA, 2026-07-28). On early surrender of an investment-linked policy the surrender value may be very low, and may even be zero in the first two years (FIDReC guide). If you might need the money within a few years, this point matters more than any illustrated return.

7. Health, occupation, financial and other policy applications have all been disclosed truthfully

The applicant owes a duty of utmost good faith. According to Insurance Business's report of a MAS parliamentary reply (2022-01-13), an insurer that rejects a claim on the ground of non-disclosure of health conditions must show that the matter was material to underwriting and that the applicant could reasonably have been expected to disclose it. In [2021] SGHC(A) 23, the Appellate Division of the High Court of Singapore confirmed that the duty of disclosure continues until the policy is issued, so new applications made to other insurers between the date of application and the date of issue must also be disclosed. When in doubt, the FIDReC guide advises disclosing even if you are unsure whether the matter is material.

Part 4. Nominations, the free-look period and replacement (points 8–10)

8. Have you decided how to nominate beneficiaries

Under Singapore law there are two kinds of nomination, trust nomination and revocable nomination, which differ in legal effect and in whether they can be changed. Without a nomination, the proceeds are dealt with under the estate process, which usually takes longer and needs more documents. For a detailed comparison see nomination and beneficiaries.

9. The free-look period runs from receipt of the policy documents and lasts at least 14 days

Except for travel, motor and maid insurance, a policy carries a free-look period of at least 14 days, counted from receipt of the policy documents. You can cancel by written notice to the insurer, and the insurer refunds the premium but may deduct costs already incurred, such as medical examination fees; for investment-linked policies the refund may also be adjusted for market movements (MoneySense, 2026-05-11). Mark the start date in your calendar and check how the policy defines the date of delivery.

10. Is this a replacement of an existing policy

The cost of replacing an existing policy usually includes the following: the cash value or accumulated bonuses of the old policy may be lost, the age at entry for the new policy is higher, health may differ on fresh underwriting, and the waiting period and suicide clause of the new policy restart (one insurer's public policy provisions give an example: no payout for suicide within 12 months of issue and a 2-year incontestability period, subject to the contract). Notice 318 requires the insurer to point out the disadvantages of replacement at the point of application, to notify the policyholder in writing when a replacement is identified, and to offer to refund the premiums paid on the new policy if the policyholder decides not to replace.

Part 5. Complaint routes and review after purchase (points 11–12)

11. Do you know the complaint route

Complain first to the insurer or adviser firm. If the matter is unresolved, you can apply to FIDReC for mediation and adjudication within 6 months of receiving the final reply; filing is free, and the adjudication limit is S$150,000 per claim (FIDReC, accessed 2026-10). Also understand the limits of the PPF: S$500,000 guaranteed sum assured and S$100,000 guaranteed surrender value per life assured per insurer, with investment-linked benefits tied to fund values outside the cover (SDIC, accessed 2026-10). See the regulatory system for insurance in Singapore.

12. Who is responsible for the annual review

The guide suggests that people aged 55 and above review their policies every 2 to 3 years to make sure the premiums remain affordable. A review covers the share of income going to premiums, the protection gap after life-stage changes (marriage, children, loans), whether the nominees need updating, and whether the address or tax residency has changed. After a change in tax residency, the insurer may ask you to submit a new self-certification (IRAS, 2026-08-11). If an adviser leaves or ceases business, the insurer must notify affected policyholders of the new servicing contact and the premium payment arrangements (Notice 318).

The 12 points at a glance

To have this interpreted for your own situation, you can register your needs through this site's contact options. For the actual application steps, see the application process in Singapore.