Getting ready to buy your first life Insurance or Family Takaful and don’t know how and where to start? Use this guide as a reference to help you to make a better and informed choice, for life insurance or family takaful protection that fits to your needs.
Buying Life Insurance/Family Takaful is one of the fundamentals to a sound financial and health investment. To help you to make a decision, here is a “Quick Guide to Buying Life Insurance” with 9 useful steps before and during the process of buying your life insurance or family takaful.
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Summary of steps and questions when buying life insurance
- How and where do I buy life insurance?
- How much cover do I need for how long?
- Shop around
- Why do I need to complete Customer Fact Find Form?
- Read Product Disclosure Sheet and sales illustration
- Complete Proposal Form accurately and completely
- Read your insurance policy carefully
- Take advantage of the 15-days Free Look Period
- Make your nomination – It is the reason why you bought the policy.
1. How and where do I buy life insurance?
- Agents of insurers/takaful operators
- Financial adviser
- Insurer/takaful operator’s online channel
2. How much cover do I need and for how long?
3. Shop Around
- Compare as many insurance plans as possible – it is always wise to shop around
- Choose an affordable plan that best suits your financial needs & risk profile
4. Why do I need to complete Customer Fact Find Form?
For the agent to assess your financial goals, protection needs, affordability & recommend a suitable product
- Step 1:
Identify your needs (i.e. protection, retirement, children’s education & savings plans) & risk tolerance
- Step 2:
Conduct financial needs analysis i.e. protection needs & financial situation
- Step 3:
Recommend a suitable product & reasons for recommendation
5. Read Product Disclosure Sheet and Sales Illustration
Read these documents to understand scope of cover
- Pay close attention to policy benefits (i.e. guaranteed or non-guaranteed), risk exclusions & premium (i.e. fixed or increasing)
- Ask questions if the policy coverage and terms & conditions are unclear to you
- Compare both premium payable & level of coverage provided
6. Complete Proposal Form accurately and completely
- Never sign a blank or an incomplete proposal form
- Make sure all information disclosed in proposal form are accurate & complete
- Double-check to ensure all answers are accurate before signing
7. Read your insurance policy carefully
- Understand the policy coverage, risk exclusions and terms & conditions of the policy
- Ask your agent or insurer/takaful operator about any terms & conditions that are unclear
8. Take advantage of the 15-day free look period
Read and review the policy.
- Make an appointment with your agent to go over the policy
If the policy does not suit your needs…
- You must return the policy to insurer/takaful operator within the 15 days
- Premium will be refunded to you less medical expenses incurred
9. Make your nomination – It is the reason why you bought the policy
- Complete nomination form to expedite payment in the event of death
- Inform your nominees of the policy