10 Questions to Ask Your Financial Consultant When Getting Insurance

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Life’s uncertainty coupled with the rise in living expenses has brought the importance of insurance to the forefront. Whether we’re setting up a retirement fund or protecting our loved ones, insurance is something that is vital to help us plan our finances. Acquiring the right policy can be a daunting task with the number of choices available to us and often times we look towards an financial consultant to help guide us on the right path.

But when dealing with an financial consultant we must ask certain questions to ensure that we get the best possible policy that suits our needs and requirements.

Talk to your financial consultant and ask these questions

1. Can I see your license?

If you think that it’s a bit rude, don’t. Insurance consultants in Singapore are required to be licensed and are supposed to show you that proof. Asking for it, if it’s not been shown already is absolutely fair.

2. What policy suits my goal?

An insurance policy is not like a cookie cutter plan. What works for one person wouldn’t work for the other. Each individual will have a different need based on their age, medical conditions, and a whole list of other factors. An financial consultant must be able to guide you towards the right policy by taking your needs into consideration. Whether it is family goals or financial goals, the needs you disclose to the consultant must be the guiding factor for acquiring the correct policy.

Related: What Types of Health Insurance Can Singaporeans Get?

3. What does the policy cover?

A lot of us end up buying a policy because of the benefits advertised but asking your financial consultant what exactly is covered is a very important question. Insurance consultants can clear up a lot of questions you may have regarding your policy such as areas of cover, and any optional add-ons that you could acquire to enhance your protection

4. What happens when…?

Now this can cover a lot of scenarios but here we mention it to remind you to think of all eventualities that could occur. This will help you better understand what the benefits of your policy are and what its limitations are.

Related: Do You Need Health Insurance, Even with MediShield Life?

5. What does this/that mean?

Once again, this applies to a lot of things in general but we mention here so that you remember to ask your financial consultant what the meaning of specific terms are. Insurance can be confusing or rather technical at times that’s why it’s best to ask what things mean, if you don’t understand something.

6. How much insurance coverage would I require?

This question allows the financial consultant to provide a policy that suits your requirements. Every individual has a different requirement and not everyone is in a position to acquire the total insurance cover that they desire. Current financial obligations such as mortgages and other loan instalments can limit how much you can direct towards your insurance policy.

It boils down to the level of financial care you can afford to provide for your family when you no longer can. Taking into account the various factors, a financial consultant can give you specific advice on which policy would best suit your current needs and provide you with an insurance policy that offers adequate cover for your goals.

7. What is not covered?

If you have not already been told this, then you should ask. The consultant should then proceed to tell you about any conditions that limit the use of your policy. Or he can tell you the conditions/situations that are specifically not covered by your policy; these are known as exclusions.

Related: How to Choose the Right Travel Insurance for You and Your Family

8. How much will my insurance policy cost me?

Again, as discussed above, the policy’s affordability comes down to the level of financial care you wish to provide. An financial consultant will guide you to a policy that offers you the adequate level of cover. If the premiums are being paid on a regular basis, ask the consultant about the cycle of payments, whether it is annual or monthly.

9. What if my payment is late?

Life is uncertain and that is the point of insurance. There will be times where another expense takes more priority and you might end up missing on the premium payment. Find out from your financial consultant, what the grace period offered by the policy is. Most policies offer a grace period wherein you can make up for missed payments and continue to enjoy the cover offered by the policy.

10. What if I want to change the the plan or the insurer?

It could happen that some months, or years, after having taken a policy, you come across another policy that you like. If at this stage, you want to opt out of your current policy and want to switch over to another one, you need to know what your options are. There is no point taking a policy with a binding contract. This could also answer the crucial question of whether you will get a refund of your premium if you are not happy with the policy, or not.

Insurance policies are a great way of being financially prepared for the future. Whatever the goal of the policy is, asking the right questions to an financial consultant can help clear up a lot of queries and allows you to purchase the right type of insurance policy.

Did you know that credit cards also offer insurance? Travel credit cards are most well known for this since they tend to offer travel insurance when you book your flight tickets using them.

Here is our list of the 5 Best Credit Cards for Travel Insurance. You can also see some of the other credit cards that offer insurance here.

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