There are a lot of conflicting emotions you could experience when you embark on your first steps into adulthood.
Here’s a quick guide to getting yourself covered while avoiding common pitfalls on your first insurance journey.
Challenges New Policyholders Typically Experience
1. Being Aware Of The Complexity Of Insurance
Reading through insurance policy contracts can be a daunting task. One feels as though they are reading an encyclopedia of technical terms. However, there is a valid explanation for this. Contracts for insurance policies are official agreements that outline the requirements for making claims. If the terminology employed are specified loosely or have ambiguous meanings, they may result in unpleasant arguments in the event of a claim.
You may be tempted to forgo insurance altogether due to its intricacy and (over)use of technical jargon, but doing so would be unwise.
However, modern, digitally-enabled insurance policies serve to streamline the process of buying insurance. For instance, DBS bank and some insurance companies such as Great Eastern, LumenLab-MetLife’s Innovation centre in Asia, NTUC Income and Prudential Singapore have already started an action to accelerate the insurance sector’s digital transformation.
2. Don't Know What Type of Insurance You Require
You may realize the importance of having insurance to cover unexpected expenses. However, if you are not a financial advisor, knowing what kind of insurance to obtain and how much coverage you need may not be your cup of tea.
So, if you’re set on finding a do-it-yourself solution, what are your options? It would be ideal if there were a basic insurance package that provided at least some of the protections you need to get started.
GREAT Life Advantage 3, a regular premium investment-linked plan provides coverage against Death, Total and Permanent Disability and Terminal Illness. Complemented with its Protect Me Again: Advantage Rider, it provides a financial cushion to help ease the impact of critical illness as it covers all stages of critical illness – early, intermediate and critical stages. It’s a starter protection plan that can help you get your protection endeavors off the ground. There are a lot more plans available in the market that offer varying degrees of protection for each of the benefits so pick the one that meets your needs the best.
3. There are excessive needs but insufficient funds
Cost is a factor while selecting an insurance policy. While we recognize the need for insurance, there are occasions when other financial objectives take precedence.
You could be putting away money for a down payment on a house or for an upcoming vacation. In addition, if you want comprehensive coverage, the premiums for some insurance plans might consume a sizable chunk of your monthly budget. Therefore, purchasing insurance may be viewed as a diversion of resources away from other priorities.
When you start your insurance planning, you should start with basic coverage at a low cost. To make sure that your protection gaps are closed, you should evaluate your needs for insurance on a regular basis and consider increasing your coverage if your financial situation improves or if your life experiences a significant change.
Get going, already!
Get in touch with a financial advisor right away to get advice on improving your financial situation and making plans for the future.