7 questions you must ask to your insurance agent in Singapore

7 QUESTIONS YOU MUST ASK TO YOUR INSURANCE AGENT IN SINGAPORE Your insurance agent can be your partner in ensuring that you’re financially protected when in need. Whether you’re thinking to buy a new insurance policy in Singapore or you already have one, it’s extremely important that you know some of the vital details so that you can plan your life and finances accordingly.

Asking right questions can help you being informed, choose that’s best for your situation as well as save money and time.

Here are 7 questions you must ask to your insurance agent in Singapore:

1) WHAT TYPE OF INSURANCE DO I NEED? The type of insurance one needs can be different for every individual and this can be on the basis of various factors such as your age, income, health/medical condition, physical abilities, previous insurance plans taken and even lifestyle.

What also matters while determining what kind of insurance you need is your plans/objectives of life such as short term/long term financial goals, family goals, new ventures (if you’re planning to start any), financial saving as well as others.

Tell your insurance agent the details of your unique situation and ask him the type of insurance you need now such as health insurance/life insurance/other special type of insurance relevant to you.

2) WHAT WILL MY INSURANCE POLICY COVER? It’s unfortunate that many times people buy insurance plans in haste or miss understanding about what the plan they have taken covers specifically. Many times this happens due to not properly understanding the policy documents.

You should study the product features and benefits and is clear as to what your policy covers or does not cover.

It’s perfect to ask questions and doubts to your insurance agent in Singapore so that you can be 100% aware about all the details of your insurance plan.

HOW MUCH INSURANCE COVER DO I NEED RIGHT NOW? Not everyone can buy total insurance coverage that they need at one go. The amount of insurance cover you need today can depend on various factors, such as The number of dependents you have Existing debts or mortgages The level of financial provision you want for your family when you are no longer there or able to provide How much you need for your children’s education Depending on your numbers, your insurance agent can give you specific advice about what amount of insurance coverage will be best for you to effectively address above concerns/responsibilities.

HOW AND HOW MUCH WILL I BE PAYING FOR INSURANCE COVER? The amount of single premium (one-time lump sum) or regular premiums depends on the level of insurance benefits you wish to receive. There may be more than one type of plan that can meet your objective with different cost-benefit pricing.

Ask your insurance agent specifically about the amount of cover you’ll be paying as well as cycle of payments such as monthly/annually. It’s extremely important to be clear about this since Confusion on payment cycle can cause you to miss some payments and be libel for penalties/receive punishment.

WHAT HAPPENS IF I FAIL TO PAY THE REQUIRED PREMIUMS? Life shows challenges sometimes. Be it a difficult financial situation, health condition, simply forgetting or a technical difficulty. It’s possible that you miss/fail to pay the premiums.

You have a grace period after the due date during which you can pay the premium with no interest charged. If you do not pay your premium within this grace period and as long as your policy has sufficient cash value, a policy feature may automatically pay your overdue premium by taking a loan against the policy’s cash value. This keeps your policy in force but you will have to pay interest on this loan.

Ask your insurance agent the details of grace period as well as other possibilities of paying premiums for the plan you have. Also it’s crucial to be aware about late payment charges, penalty and punishments in case of failing to pay.

SHOULD I REPLACE AN EXISTING INSURANCE POLICY? New and better policies are being introduced every next day. It’s possible that the policy you taken 5/10 years before does not offer as much benefits as some of the current policies might be offering.

Ask your insurance agent in Singapore if you should replace your existing policy with a new one. Make sure to tell him details of the policy as well as provide documentation that has all the termination related rules mentioned.

WHAT HAPPENS IF I TERMINATE MY POLICY? Early cancellation of a policy may incur additional fees and charges. What is more important is that you may be losing valuable benefits.

Buying an insurance policy is a long term commitment and early termination may result in you receiving an amount that is less than the total premiums paid.

If you develop a health condition after buying the policy you are now terminating, any subsequent new policy may not cover you for that preexisting condition.

When you ask specifically, your insurance agent should advise whether or not it’s a wise and beneficial choice to terminate the same.

Awareness about your current as well as next insurance plan can be considerably useful in taking better choice and hence it’s important that you not only ask right questions to your insurance agent but make sure that the agent you’re choosing is actually interested in helping you than merely completing the selling targets. This is applicable not only for those buying new insurance policy but also who already have policies taken must periodically review in line of these questions and ensure that the answers keep them fully covered.

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