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Friday, January 3, 2014

Read Do You Make These 6 Mistakes in Insurance Planning!

Do You Make These 6 Mistakes in Insurance Planning? (Part 1 of 3)

Insurance is a product you need to buy when you do not need to use it.
Much like an umbrella many ladies bring along when they go out on a sunny day, or the spare tyre in the trunk of their cars many gentlemen drive around in.
It’s the product you would have to activate in case the unthinkable happens.
Unfortunately, when you need it, it's too late to make sure you have the right type and amount of insurance coverage.
In Singapore, having insurance coverage is as important and many Singaporeans are believers of insurance.
However, according to the article, Many S'poreans don't have the right insurance cover, and it’s largely due to one or more of the 8 reasons we are highlighting here.

Let’s make sure you do not make the following 8 mistakes in insurance planning.

1. Failure to actively browse and shop around

The most common mistake is that Singaporeans don't shop around for insurance.
The main way people buy insurance is when they are being approached by financial advisors. Being encouraged to take up insurance by financial advisors is fine. Not doing any active searching by oneself is not.
Usually insurance consumers lack excitement and face boredom in buying insurance so they usually let that one person handle their insurance needs.
Do you know that just making a 5 minute’s call to the main insurance companies in Singapore and enquire them about their plans would make a huge difference in the insurance premiums they pay for insurance?
Similarly, just reading the insurance product brochures, product summaries or benefit illustrations could amount to a new level of knowledge and more insurance savings.
Or just get the insurance compnaies to send you emails so that you can read when free. To avoid using your mian email address, just get a new email account at Google.

2. Do comparison but only checking the insurance premiums and discounts or free gifts.

Some consumers do compare plans. However, when there are discounts or vouchers presented by the financial advisors, we tend to forget what we were supposed to be comparing in the first place. (I was guilty of that too!)
Suddenly we focus on the nett price. Yet, the truth, the comparison of prices do not make sense, since almost no 2 insurance plans are the same.
This is understandably so, as insurance companies aim to product differentiate.
Thus, the solution is to ignore price and to check on the width and depth of insurance coverage.

3. Not buying enough of certain important insurance products.

NEVER ever, ever, ever, EVER save on health insurance no matter how healthy you feel today, or that the fortune teller told you you'll never met with an accident.
Personally, I don't think anyone in Singapore today should be without health insurance. Did you ever come across a day in a hospital where it is empty??
The only reason you do not own health insurance is when you are not eligible for buying. Or the insurance companies in Singapore have no more stock!
Getting your medical expenses fully reimbursed is now possible in Singapore, even the insurance exces, i.e. deductibles and co-insurance.
Contact us, if you would like to be able to choose any hospital, any doctor, and any ward, and be fully insured.
Life insurance, on the other hand, is on most consumners' agenda. The common mistake here is that almost every consumer wants to ensure each life insurance plan has returns.
The article, S'poreans unsure what's enough insurance cover affirms that.
Because of that, many Singaporeans become severly under-insured.
We have a formula that actually allow an individual to at least double his life insurance coverage, while maintaining or even lowering his insurance premiums.
Contact us for more details.
Third, disability income insurance is severly short in mnay Singaporeans. Statistics have shown that people are much more likely to become disabled than they are to die prematurely.
If you become disabled and can't work, long-term disability insurance can allow you to receive a monthly income, whether you can resume work, or cannot work any more.
This effectively secures your pay!. Such insurance plans are rare in Singpaore.
Contact us now and allow us to direct you to the insurance companies that offer this wonderful insurance coverage to Singapore consumers.

4. Over-Reliance on Employer Sponsored Insurance Plans

Many Singaporeans believe that their employers have bought on their behalf, a whole assortment of insurance plans that will provide adequate insurance coverage, should the unthinkable happen.
However, if one is to check with their HR (human resources) manager, usually employees have only the Group Health Insurance plan.
Perhaps, this is sufficient, if you do not ever switch jobs, the company you are so loyal to stay operational, etc
You get what we are trying to say, don't you?
The only real security is one which we provide for ourselves.
Period. 

5. Buying unnecessary insurance policies.


Have you met someone who owns a home insurance policy with pet coverage, when the household does not have any pets?

We have.
Also, buying life insurance coverage for certain groups of people may be unnecessary . For example, Most people don't need life insurance on their children. While the death of a child is tragic, financially it's not as detrimental as a breadwinner passing away.
Instead, Singapore parents should get health insurance for their kids, followed by child accident insurance plans. After all, almost al chldren are accident prone, aren't they?
Then ensure they have critical illness coverage, as statictics have shown that certain serious illness in certain age groups are more common.
Then, put in place a university endowment fund, for their future university tuition fees.
Usually, a basic plan plus a few of the important insurance riders will be sufficient for an average child.

6. Not updating and reviewing your insurance coverage annually

Evaluate your coverage whenever you go through a life change, such as childbirth or marriage, but at least once annually.
Would you believe it: Many Singaporean parents would rush to sign their newborn an endowment policy, for thier future university education. Yet, they did not think of using their COF Medisave funds to buy for their child, a health insurance policy.
A health insurance review each year, is also neccessary, as there may be worthy plan upgrades. Of course, your financial advisor has to be the one to inform you of the improved insurance coverage.
Reviewing and updating need not be dificult. A simple Excel spreadsheet will do the trick.
Study it and then look over your policies. Then call your agent or company with questions about your coverage. If you're not satisfied, check out the competition.
For a copy of the spreadsheet that have proven to work very well for many Singaporeans, kindly contact us, and we will send you a copy soonest.

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