What is insurance?
Simply put, insurance is a policy that one pays for to receive financial protection or reimbursement in the event of damage, injury, sickness, death, or other losses. At Gibraltar BSN, we cover the more personal aspects of your life - health, life, and finance.
Why do I need insurance?
Life is full of surprises as well as ups and downs. Sudden illness, injuries from accidents - even death - may occur without warning. Insurance helps you hedge against the expenditures directly or indirectly related to those events, thus relieving some financial burden from yourself or those under your care (e.g. family, other beneficiaries). An Insurance plan only covers the losses specified in the plan.
What is the difference between life and general insurance?
Both life and general insurance provide financial protection. In addition, life insurance deals with life risks, such as death, permanent disability, or diagnosis of a critical illness. General insurance, on the other hand, covers any other risks that do not involve life. Some examples of general insurance policies are home insurance, motor insurance, travel insurance, etc.
What is term life insurance?
Term insurance is a type of policy that you pay and renew for a specific period (the “term”), typically yearly. Should you pass away or if you suffer total and permanent disability while the policy is active, a tax-free payment will be given to you or your beneficiaries. You may also opt to change your term policies to permanent policies in the future.
What is whole life insurance?
Whole life insurance covers you throughout your whole life. Some plans can build cash value over time and some lets you pay for a limited time and then never again. Similar to term life, whole life insurance gives your beneficiaries tax-free payment upon your death or total and permanent disability during the coverage term of the policy.
What is endowment insurance?
Endowment insurance provides both a protection and a savings element, which enables the policyholder to fund their children’s education or save for retirement. A guaranteed amount will be payable if the policyholder survives to the end of the policy term or once the policy reaches its “maturity date.” The sum assured is paid to the beneficiaries in the event of premature death of the life assured.
What is medical/health insurance?
Medical/Health insurance is a type of insurance coverage that covers you on disease, sickness, and/or medical expenses. The benefits of this insurance may take the form of reimbursements (of medical expenses), a lump sum payment of the sum insured, or payment of an allowance at regular intervals for the period that the Insured is hospitalised or diagnosed with any one of the specified critical illness.
What is an investment-linked insurance?
Investment-linked insurance is a combination of investment and protection. The premiums that you pay provide you, not only with life insurance cover, but also investment value in specific investment funds of your choice. The unit price of the specific investment funds is based on investment performance of the managed funds. The benefits paid to you or your beneficiaries will depend on the price of the units at the time you surrender the policy or pass away or total permanent disability.
What is a rider?
Riders are offered as options to the basic coverage that extends your coverage to specific contingencies like accident, disability, hospitalisation, and critical illness to meet your individual insurance needs. You need to pay additional premium for your riders.
Customer Specific Questions
What kind of insurance policy should I look to purchase as a first-timer? (What is the right plan for me?)
What kind of insurance policy should I look to purchase as a first-timer? (What is the right plan for me?)
The right kind of plan really depends on your financial objectives and where you are in your current stage in life. It is important to find the right balance between the amount paid and the amount insured for. We recommend that you own policies that satisfactorily meet your insurance needs and affordability.
Have a go at our financial calculator to help you make a more informed decision.
How can I purchase an insurance plan with Gibraltar BSN?
How do I know how much coverage I need?
A general rule of thumb is that you should set aside minimum 10 times your annual income for life protection and minimum 5 times your annual salary as income replacement for critical illness protection).
How do I know if I can be insured? Is insurance expensive?
Each insurance application is assessed based on a person’s insurability, i.e. their age, medical profile, lifestyle, and occupation. Your risk level increases as you age, reducing your insurability. The higher the risk you pose to the insurer, the higher the premiums you pay.
Some people may be asked to pay more for their insurance coverage (usually referred to as loading) or in some cases, the insurance company may consider a person to be uninsurable. It is for these reasons that we advise you to buy insurance when you’re young and healthy.
How will I know the premium for my insurance policy?
When you purchase a policy with Gibraltar BSN, we make sure to notify you of the premium amount you have to pay for the current term. If there are any changes in the premium, the company will notify you in 30 days.
Will the premium to my insurance policy increase over time? And if so, where can I check this?
Yes. You may refer to the terms and conditions stated in your policy contract or call our Customer Care Line at 1300 22 6262, for details.
How much should I set aside for my premiums?
The general rule of thumb is that you should set aside 10–20% of your monthly income for your premiums.
I just bought an insurance plan but would like to cancel it. Can I do this and get my premiums refunded?
Yes. Under the Financial Services Act (FSA) 2013, you are given 15 days of a free-look period from the date of delivery of the policy. If you decide to cancel your plan within this period, your premium* paid will be refunded.
(* All the premiums paid, minus expenses, which may have been incurred for the medical examination of the life insured.)
What is the difference between buying an insurance plan online versus buying one from an agent?
With an agent, you get a more personalised service whereby a solution can be more easily tailored to your needs. Purchasing a plan online removes this personalisation aspect and requires you to have a basic understanding of insurance so you know what your needs are and what plans to purchase.
What kind of insurance policies does Gibraltar BSN offer?
Gibraltar BSN offers a range of flexible and convenient life coverage for you and your loved ones, such as life protection, health protection, personal accident coverage, as well as savings and investments.
What is a nominee?
A nominee is a person who will receive the proceeds from your policy upon your death.
Who can I nominate for my policy?
You may nominate any person, but not an organisation as a nominee.
Can I nominate for more than 1 person?
Yes. You may either state the specific shares each nominee will receive or leave it to be divided equally. This applies to non-Muslim policyholders only.
For Muslim policyholders, nominations can be made and policy proceeds will be paid accordingly. However, the nominees will have to distribute the proceeds according to the Shariah law.
What is a trustee?
A trustee is a person that you appoint to manage/execute the sum of money as per your request in the original nomination form.
Why do I need to appoint a trustee?
In many cases, you are likely to appoint nominees that are your children, who might not be able to know how to manage their own money. And even in the cases where you appoint your spouse or parents, the amount might be too large for them to know how to manage. Appointing a trustee takes this burden off their shoulders.
Who should I appoint as a trustee?
You should be appointing somebody you know you can trust as a trustee. It must not necessarily be your family member and can be an organisation.
Where should I go to complete a nomination/trustee application?
You may download the Nomination Form from Gibraltar BSN website and submit to us upon completion.
What is the role of an executor?
As the executor, the person has the obligation to distribute the benefits as stipulated in the insured’s policy according to the applicable distribution laws.
What does it mean to assign a policy?
Assignment is the transfer of the policy rights and liabilities from the policy owner to another person, which is known as assignee. Prior consent of the company is needed for an assignment to be valid.
What is the minimum age of an assignee?
18 years old. A minor who has attained the age of 10 to 17 may assign his life policy with the written consent of his parent or guardian.
What is an Absolute Assignment?
It is the transfer of policy ownership rights from the original owner to another party. Once the policy has been assigned, you can no longer nominate a nominee or trustee for the policy. However, premiums continue to be payable by the Payor.
What is a Conditional Assignment?
It is the transfer of policy ownership rights from the original owner to another party only upon the death of the Insured Person. However, all the rights will be reverted back to the Insured Person if the assignee dies before the payment of the policy money becomes due or if the life assured survives till the maturity date of an endowment policy. This is applicable to Non-Muslim policy owners only and requires the consent of the Conditional Assignee for further dealings under this policy.
Insurance Specific Questions
What is life insurance and why do I need it?
Life insurance, simply put, is an insurance plan that helps safeguard your loved ones in the untimely and unexpected event of your death. You need Life Insurance as a form of security to ensure that your dependents have enough income after your demise which your dependents could use for:
- Monthly expenses
- Keeping up their standard of living
- Children’s education
If you do not have dependents:
- You can use Life Insurance as an investment tool. You can select either a savings policy or an investment-linked policy to start your investment. Both policies have the potential to offer you higher returns in the future. If you’re young, you may want to consider purchasing a whole life policy as the premiums are low.
If I own a life insurance policy, who gets the money when something happens to me?
The policy money or claim benefits shall be paid to:
- The Assignee if there was a valid assignment prior to the death of Life Assured
- The Nominee if there was a valid nomination made prior to the death of Life Assured
- The estate of the deceased Life Assured if there was no nomination and no will
- The executor of the deceased Life Assured if there is a will (Grant of Probate) or Letter of Administrative/ Distribution Order is presented
Why do I need medical/health insurance?
With medical insurance, you will get yourself protected from rising cost of medical treatment and it provides you a hassle-free admission into Panel Hospital for medical treatment.
What is the difference between a medical policy and a critical illness policy?
At Gibraltar BSN, the main difference between the medical policies and critical illness (CI) policies is that medical policies deal with the coverage of your hospitalization fees, such as room & board and operational costs (like removing an appendix). CI policies, on the other hand, will pay out a specific lump sum to the policy owner as soon as they have been diagnosed with one of the specified CIs. Additionally, our CI policies also include an income replacement aspect, as individuals who have been diagnosed with a CI may lose their livelihoods, potentially jeopardising the quality of life of themselves and their family members when hit with an unexpected diagnosis.
I recently purchased a medical card. Does this mean I do not have to worry about making payments to the hospital upon discharge?
While you may use a medical card as a cashless payment facility, it may not cover all the expenses incurred, such as tax, extra food, and other exclusionary items. We advise you to check with your agent or peruse your policy to understand what items your medical card covers.
I already have a medical card from my employer. Do I still need to get a critical illness insurance policy?
A medical card covers the expenses that you incur within the hospital setting (e.g. hospital bills, stay); however, it does not relieve you of your financial when you’re diagnosed with critical illnesses that may not require hospitalisation. Examples of such expenses include household help, supplements, and medical utensils.
What are some of the common items that are not covered by my medical insurance during a hospital stay?
The following items are typically not covered:
- Telephone charges
- Miscellaneous Charges
- Medical Report Fees
- Glasses, hearing aids or fitting
How do we know which funds to select when purchasing an investment-linked fund?
This will depend on the risk-profile that you prefer. If you wish to learn more about your risk profile, please contact our Customer Careline at 1 300 22 6262.
How often should I review my insurance policies and needs?
We encourage all our customers to review their insurance needs on an annual basis.
What is the savings element listed in your savings & investment insurance policies? How will I know the savings amount of my insurance plan?
It is the potential upside investment returns via Investment-Linked funds. We’ll send you semi-annual statement regarding your latest savings/investment amount.
After Purchasing a Plan
How do I make a claim?
Before making a claim, we encourage you to contact our agent or our agent or reach out our Customer Care Personnel at 1 300 22 6262 to determine if you are covered for the event you’re making a claim for.
To expedite your claiming process, you should fill in this form, download the relevant claim forms from this page, and bring original/certified copies of the required documents listed in the same claims page. Should you need further assistance, feel free to consult us at your nearest Gibraltar BSN branch.
What are the supporting documents required to submit a claim?
The supporting documents for each type of claim can be found under the “Types of Claims” section from our claims page here. Click on the relevant type of claim and look for the required documents listed. Please note that the submission requirements are basic points-of-references. We reserve the right to request for other relevant documents.
I have submitted claims for my existing policies, do I still need to pay the premiums that are going to be due?
Yes, you are advised to continue paying the premium until your claims decision has been finalized. Any excess premium will be refunded.
If my company or other insurance company does not completely cover my medical expenses, can I claim the balance under my Gibraltar BSN medical policy?
You may submit the relevant documents to us for further assessment. Documents required are:
- Relevant Claim Form
- Copy of Medical Report (certification of documents from other is required)
- Copy of medical bills / itemized bills
- Original receipt(s) for amount not coverable from other insurer
- Copy of Approval letter or claims worksheet from other insurer
Will I be able to make claims if I were admitted overseas?
You may submit all the relevant documents for our further assessment.
Are there any additional documents required if the Life insured passes away overseas?
Yes, you will need a copy of letter on the status of Death from Oversea Letter (certification of documents is required) from Jabatan Pendaftaran Negara.
The old bank account/credit/debit card that I used to make my premium payments have been deactivated. How can I change my payment details?
You may download the Auto Debit Form to make the necessary updates and submit it to us upon completion via email or fax.
What happens if I fail to pay my premiums?
Your policy shall lapse or Automatic Premium Loan shall be applied as per terms and conditions of the policy contract.
What happens if I’m late in paying for my premiums?
You have 31 days' grace period from the premium due date to remit the premium. Late in remitting the premium will leads to your policy lapse or went under Automatic Premium Loan.
Can I switch my payment mode from annual to quarterly once I’ve purchased an insurance plan?
You may change the mode of payment from Annually to Quarterly by completing the Request for Alteration form. The new payment mode will be effective upon anniversary of your policy.
When can I receive my policy statement for income tax?
The policy premium statement will be available in Gibraltar BSN Customer Web Portal in the month of March. You may view or download the statement from Customer Web Portal when it's available for download.
Can I apply for a copy of my policy contract? How do I apply for it?
I want to update some old information from my policy (i.e. address, mobile number), what do I do?
What is a policy loan?
It is a loan made by the Company to a Policy Owner with the cash value of the policy serving as security.