So you’re all grown up now and one of the things you need to do to get this adulting thing right is to buy your first insurance policy.
Okay, so poring over insurance policies and actually speaking to insurance agents rather than running away from them isn’t exactly the most enjoyable way to spend a Tuesday night.
But making sure your first insurance policy is right for you isn’t rocket science-yes, even if you have no clue what insurance you need or even why you need it.
Here are five tips to get yourself on the right track.
1. LISTEN TO WHAT THE INSURANCE AGENT HAS TO SAY, BUT DON’T FEEL OBLIGED TO BUY FROM HIM
You should totally avoid insurance agents like the plague-unless you actually do want to buy insurance but aren’t sure what plans you need.
If you have no clue where to start, it would probably benefit you to make an appointment with an insurance agent in your social circle, or even one of the random ones who’s accosted you on the street. Sit down with them and have them explain the various types of insurance policies.
You’re not going to need all of the plans the agent talks about-for instance, be aware that the agent is likely to try to get you to sign up for an investment-linked savings plan, which may not be a good idea. But some plans are more appropriate as your first insurance policy, such as health insurance and personal accident insurance.
The agent will be able to give you a pretty comprehensive overview of what the various insurance plans are for. Of course, there is no substitute for reading the actual policy. But if you’re totally clueless, an agent can give you a good introduction.
2. UNDERSTAND WHAT INSURANCE YOU ACTUALY NEED
Once you’ve parted ways with the agent, you should have a decent idea of what the various types of insurance entail. Now you need to figure out what you really need-obviously, if the agent had his way, you’d be buying everything.
As a general rule of thumb, a health insurance plan is highly recommended for every young Singaporean who’s started working. Yes, we have MediShield Life, but it is very limited in scope and you’ll be stuck in overcrowded government hospitals if you have only that to rely on.
If you have dependents-such as children, aged parents, a non-working spouse-who rely on you financially, you should also consider life insurance. Note that there is a big difference between a straight-up life insurance plan and investment-linked life insurance.
By JOANNE POH
See full story at www.asiaone.com