Firstly, to simplify the purpose of having an insurance is to give you a peace of mind be it for protection or wealth accumulation. We have to face the reality of life living in Singapore. Cost of living will eventually increase due to inflation. Insurance policy is now more practical for every individual to own irregardless of their age. I would suggest having the minimum insurance policy for yourself and that is Medical insurance. It is the kickstart for any individual to start having the policy before proceeding to have other type of insurance coverage. It would really helps alot in your medical bills. With that in mind, please read the coverage of the policy that you are purchasing. They normally have several package to cater to your needs. I personally encounter several of those people that i know feel disappointed as they could not use their insurance policy to cover their cost. If you face some issue on your personal finance, start with the minimum coverage for yourself and slowly increase your coverage as you feel more comfortable. It would be essential to have good insurance agent to assist you on this. Personally, a good insurance agent would follow up with you the minimum of every 2 years. BUT! I strongly advise you to monitor it yourself as well! It is really really really important to know what you are buying! =). You should know best of your health!=)
Just a brief highlight of the different type of insurance policy based on protection and wealth accumulation.
| Type | Protection | Wealth accumulation |
| Term | 100% | 0% |
| Life | 60% | 40% |
| Endowment | 30% | 70% |
To me, certain type of policy varies according to an individual finance capability. I will tell you briefly on each type of insurance policy.
Term insurance which is purely on personal protection against injury or permanent disability. It is the cheapest form of protection for an individual due to low monthly premium which is also translate to a low disbursement upon making claim by the policy owner.
Life insurance which is very popular among the middle and high income earners, the policy premium is relatively high. It is normally being used to inherit some monetary to their children or spouse to overcome their daily financial means if anything happen to the policyowner.
Endowment policy is popular among low risk policyowner who prefer to put aside some money for rainy days and have some protection as well. The policy often offer higher interest rate return as compare to fixed deposit in the bank. As usual, please read the term and condition on it. There is always underlying reason why they are willing to give you the perks.
Once again, PLEASE do not be lazy to read any policy that you are planning to purchase be it for yourself or for your loved ones.
Benefits of having an insurance agent
Having an insurance agent is just like having your own personal secretary that would help you to do up the necessary paper for your insurance policy. You should be thankful if your insurance agent would keep in contact with you. This shows their interest in your well-being. It is essential to get a sincere insurance agent to manage your policy and your family.
Some brief pointers on the benefits of having an insurance agent:
1) Policy expert as they should know best.
2) Will provide you any update on changes of the policy or new product that best suits the policyowner.
3) They will do the necessary follow up if you happen to make a claim or do some amendments on your policy.
4) Can be your family personal insurance agent under one roof.
5) They will visit you at your convenient time and location.
Hope this helps you to be more receptive and be more open on insurance product whenever your current insurance agent or any of insurance agent approach you. It may be useful for you so it is worth listening. FYI, I am no relation or get any incentive from any insurance company on writing this as this is all based on my opnion and insights. Cheers!
No comments:
Post a Comment