According to The Straits Times, there have been more than SG$150 (US$105.12) million of unclaimed insurance, with Life Insurance Association Singapore (LIA) enhancing the “Register of Unclaimed Life Insurance Proceeds” on its website in 2018, we still face consumers being unaware of the policies that they have gotten over the years.
Based on a focus group study that we conducted in 2016, we found that there have been multiple occasions where the consumers who’ve purchased policies from multiple companies over the years would gradually lose track of them, especially when the policies are paid via GIRO in small amounts monthly.
In addition, there were situations where clients’ families were unaware of the policies in a position of mishap, which led to a long delay in the claim process (leading to family members having to stress over financial constraints) or worse, leading to unclaimed insurance.
Loved ones may not know what policies you have purchased
An example we’ve encountered was with a 61-year-old lady who bought multiple insurance policies throughout her life as she believed in the importance of good coverage. Unfortunately for her, she later suffered from a Hemorrhagic stroke which landed her in the ICU and subsequently in a coma for nearly two months.
Her family members were uninformed about her extensive insurance policies, and they admitted her to the lowest ward in the hospital for fear of the hefty hospital bills. Unbeknownst to her family members, her insurance policies would have covered her stay in a Class A ward in government/restructured hospitals.
Eliminating the communication pain points
Due to PDPA, most insurers’ digital platforms since 2016 would only directly reflect policies purchased from them. To overcome this communication limit, the FinStyle app was created to help users consolidate all of their insurance policies in one place.
Through the app, users will:
- Have a clear overview of the various policies they are being insured for
- Overall coverage sum
- The total premiums that they are paying for
- Basic policy details (e.g. policy number, maturity date and surrender value)
Also Read: Shouldering the responsibility of digital payment security
While the information might not be as comprehensive as a contract or policy illustration, the app aims to allow users convenient and quick access to an overview of their coverages and cost, ranging from individual policies to the whole amount.
Functions of the FinStyle app
With a pre-programmed smart calculator embedded in the system, consumers can calculate their individual protection needs by entering information such as their years to provide for family expenses, the annual amount required, final expenses and so forth, which then allows the app to show if the consumer has a shortfall or surplus in their coverage, taking into consideration their existing portfolio.
This function was created to give consumers a better understanding of how they can derive the sufficient insurance coverage they require based on their needs rather than purchasing coverage as advised by a financial consultant or friend. This will also protect the consumers from rogue financial consultants and improve the financial planning industry’s reputation in Singapore.
To prevent the issue of unclaimed insurance and allow family members to be aware of essential insurance details in times of need, FinStyle has a ”Shared Policy’ function that allows users to share their policies with other users selectively. This ensures that family members or trusted recipients know which insurer to contact and process the claims during unforeseen circumstances.
The FinStyle app works with various partners to host monthly events and publish investment and lifestyle insights to educate their users. The brand works with the iFast investment platform, where users can trade equities, bonds, ETFs and unit trusts directly from the app and gain direct access to iFast TV for the latest investment updates.
The gap between digital literacy and the financial services industry
The FinStyle app is free of charge, and users can key in all of the policies to keep track of the policies they’ve purchased over time.
“As an entrepreneur and philanthropist, I want to raise awareness of the importance of financial planning transparently and professionally to allow consumers to have a better understanding of what kind of insurance they are buying, why are they buying it, who are they buying it for and how it benefits them throughout their life,” shared Bentley.
The FinStyle app aims to help more individuals unaware of any insurance plans purchased by their loved ones. The app aims to revolutionise the financial services industry by providing users with 24/7 access to their entire insurance and investment summary while enjoying the features catered to their needs.
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