Checklist to Own Insurance

Because our financial goals and circumstances are different, there is no one “Rule of Thumb” that will tell you what insurance or how much. It is important to engage a Financial Consultant/Insurance Representative to ensure that they are able to provide their services and advice and prioritize your financial needs based on your present financial situation.

These are the top questions you should ask your chosen Financial Consultant or Insurance Representative.

1. Which type of insurance do you need? What is the coverage of my insurance policy?
3. What amount of insurance do I need?
4. What will my premiums cost? Can I afford them long-term?
5. What happens if I don’t make the premium payments?
6. How can I file a claim?
7. Do I need to replace my existing insurance policy?

Before you purchase an insurance policy, it is important to understand the steps involved, what options are available, and what the compromising elements of the process. While your Financial Consultant may help you make the right decision, it is not possible for them to make that decision for you. You are the prospective client and you must determine your financial needs.

Consider these things before you buy an insurance policy.

1. What type of insurance do you need?

First, it is important to understand your goals and needs. After completing the fact-finding exercise, you will be better equipped to determine what type of insurance you need, regardless of whether it is for retirement, protection, or savings.

You should consider your risk appetite when considering investment. Higher returns can come with higher risks. When it comes to savings plans, you should focus on the guaranteed as well as non-guaranteed parts of your plan. You can revise the non-guaranteed portions at any time and they are dependent on the performance of your company’s life fund.

Your Financial Consultant should have regular reviews of your policies, needs, and objectives after you have purchased your policy. Because it will change over the years, your financial consultant should also do periodic review sessions.

2. What is the coverage of my insurance policy?

Different types of policies may have different coverage.

Your Financial Consultant should give you a list with recommendations that includes types of policies and their benefits, before you sign the dotted line to purchase it. Your responsibility is to understand and fully comprehend your policies. If you have any questions, consult your Financial Consultant. Ask them.

3. What amount of insurance do I need?

You will need to consider the following factors:

1) How many dependents are you responsible for?
2) Are you in default on any mortgages or debts?
3) What type of lifestyle would you like to lead for your family in the event of unanticipated circumstances?
4) How much money do you need to fund your children’s education?
5) What are you investment needs?

Your Financial Consultant will help you determine your financial situation and what insurance coverage is best for you. Not everyone has the ability to purchase all the insurance they require immediately. Your Financial Consultant can help you prioritize your needs and recommend policies that fit your budget.

4. What will my premiums cost? Can I afford them long-term?

The amount of premiums you pay will depend on the coverage you choose. Before you decide to add a rider, it is important to fully understand the benefits of the basic policy. You may be able to get benefits such as future no-cost premiums if you are unfortunate enough to lose your policy. These riders can be added to an insurance savings plan. Talk to your Financial Consultant about the different types of riders they are able to offer.
If your policy doesn’t have this benefit, and it is impossible to keep your insurance, talk to your Financial Consultant about the options available to you and how they can help.

5. What happens if I don’t make the premium payments?

In most cases, your insurer will grant you a grace period of between 30 and 31 days during which you can pay your premiums without additional interest. If the grace period expires and you have sufficient cash value, your insurer will issue a policy-loan against that cash value to pay the outstanding premiums. The loan will be charged interest and your policy will remain in force.

The way they deal with overdue premiums will vary between different types of policies. Talk to your Financial Consultant.

6. How can I file a claim?

Fill out a claim form and contact your Financial Consultant. Prepare the supporting documents and send them along with the claim form.

If your claim is settled by the insurer, a cheque will generally be issued within seven days of receiving all documents. If they are unable or unwilling to settle your claim in full, they will inform you by writing.

7. Do I need to replace my existing insurance policy?

An insurance policy is a long-term commitment. After careful consideration, you should decide whether to terminate or surrender the policy.

Additional fees and charges may be incurred if you terminate your policy early. You may also lose valuable benefits. You might be experiencing a change in your health and the coverage you receive may not match what you have been receiving.

Consult your Financial Consultant if you find it difficult to keep your policy. You may be able to lower the premiums by reducing the amount assured for certain policies.

If you decide to end your current policy and buy a new one instead, we recommend that you not do so before the new policy is in effect. This will ensure you have coverage in the event of an unfortunate event.