5 tips to buy your first insurance
We always protect the things we think are dear to us. The process begins right in the womb of the mother where nature finds its way of guarding the unborn child. When we are born, our parents continue to conserve and nurture us until we become independent adults. At every point in time, there was some line of defense that ensures our best interests. Buying your first insurance can no doubt be challenging and perhaps even confusing. An insurance policy typically does the same. It acts as a shield for any sort of unforeseen expenses. Your insurance plan is in effect an umbrella for your overall financial profile.
Be it automobile, health, life or home, almost any and every asset under the sun can be insured. When it comes to buying insurance in Singapore, Seedly ranks health insurance to be the most important insurance policy for people. Term or whole life insurance ranks second, critical illness insurance ranks third, disability ranks fourth and personal accident insurance ranks the fifth. However, there are various other types of insurance policies in the market, and you need to decide on your insurance policy based on your priorities. For example, if you are the sole breadwinner of your family, then the income from life insurance or disability insurance will help sustain your family in times of adversity.
If you are new to the world of financial planning, then the multitude of insurance policies in the market can be daunting. Here are a few tips to help you buy your first insurance in Singapore:
Book an appointment with an insurance agent
For those of you who are new to buying insurance policies, meeting a reputed insurance agent can be your starting point. Pay attention to what they say, but don’t make up your mind based on one discussion with your insurance broker. Instead, use this meeting to gather as much information possible about various policies. These professionals are certainly well-versed with various types of insurance plans. You may not require all the plans the agent talks about but you will be able to develop a fair idea of what you want. For example, health insurance or personal accident insurance could be the ones that you need as your first insurance policy.
Identify the type of insurance you need
Armed with information on what various types of insurance entail, now you need to identify the type of insurance you need. Most financial experts in Singapore recommend buying a health insurance plan. No doubt, Medishield life has your medical expenses covered but it comes with a long list of limitations. With the hefty premium increase, yearly claim limits, and a tedious procedure to make claims, you surely need a better alternative to sustain your hefty health-related bills. Moreover, if you only rely on Medishield life, you may have to wait in overcrowded government hospitals for treatment. A health insurance plan from a reputed financial company can adequately take care of your medical expenses during times of need. Similarly, if you plan on buying a vehicle, then an automobile insurance plan could be your requirement.
Compare insurance plans from various companies
The insurance agent you spoke to most likely works for an insurance company. So, it won’t be wise to be hasty in your decision. This goes without saying; even while buying a phone we tend to compare our options before we make the final choice, and then why not do the same for your insurance policy. Do your research to find out what each company is offering. Check for reviews of the same. There are many websites like CompareFIRST that provide a detailed comparison of various insurance policies in Singapore.
Check for affordability
While buying an insurance policy, you need to check if you can afford to pay the premiums. With the help of a professional, evaluate the increase in the premiums in the forthcoming years and make an estimate of your expenses. Getting insurance is no doubt a boost for your financial plan, but if you can foresee that you might have to incur high expenses in the near future, then sensibly decide on the insurance plan you need. You can always delay the process of buying a policy, until the time you can afford to pay the premiums for the insurance plan you desire.
Understand the basics of your insurance policy
Once you have narrowed down your options, the next step is to analyze the nitty-gritty details of each offer. Get a thorough understanding of the key concepts involved in your insurance plan like ‘deductibles’ and ‘co-payment’. Buying an insurance policy is an investment that you make on an asset you value the most. Hence, it is important that you understand the terms and conditions of the policy you wish to buy. Make a note of what all is insurable and what are the exceptions to your policy. Assess the benefits it offers and sees how it will impact your financial profile.
Buying your first insurance can no doubt be challenging and perhaps even confusing. Let this article help guide you so you can make the right choice in picking your first insurance in Singapore.
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