Insurance Tips and Guides

Many people are looking what is the best practice in handling or buying an insurance. Here are the good guides on how you can do with your insurance.

One insurance for one asset

You need not buy more than one insurance policy to protect an asset against the same risk, e.g. fire risk for your house. If you buy more than one insurance policy, when there is a loss/damage to your asset, you can only claim under one policy. The insurer that has made payment to you will request the other insurer(s) to share proportionately the payment made to you.

Take your time

Don’t be pressured into buying a policy. If you are not sure whether the policy is what you need, ask the insurance agent or insurer to explain it to you. For a life insurance plan, the insurance agent will usually give you a “policy illustration” that shows how the policy works. Carefully study the proposal and ask for point-by-point explanation.

Duty to disclose

When buying insurance, you need to state all the material facts about the person or the item to be insured. This is for the insurer to decide if it should provide the cover and the amount of premium to be charged. If you do not observe this, your insurance policy can become invalid. Check with your insurance agent if you have any doubts on whether a fact needs to be disclosed.

Deal with registered insurance agents

You would normally buy insurance from an insurance agent, who sells insurance products for the insurer which has appointed him. When dealing with an insurance agent, ask for his Agent Registration Card or check with the insurer. If he is unable to prove that he is an authorised agent, don’t deal with him.

Shop around for a good deal

It pays to shop around for insurance. Different insurers offer plans with different benefits, terms and conditions and exclusions. It is important to understand the benefits and exclusions to ensure that you are properly covered. There is no short cut when buying an insurance policy. Read everything about the policies offered before selecting one.

Insuring your needs

The aim of having insurance is to lessen your financial burden when you suffer from losses or mishap so that there is minimal disruption to you and your family’s daily activities. However, an insurance plan only covers you for losses specified in the plan. So, if you are getting an insurance policy, make sure it covers the items you need to protect.

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