Why on earth would I want to learn about insurance?
I used to be hopeless at housework.
My typically Chinese parents had spoilt me badly.
Study hard and get good grades and they would settle everything else for me.
I had no idea how to wash dishes or do laundry.
Instant noodle was my speciality in the kitchen.
You could forget about the idea of me changing any light or fixing electrical appliances.
Basically, I was useless at home.
But I was quite alright with that.
Cheap and good food are available at the time here; plumbers and electricians are easily accessible too.
And my parents are dependable last options.
Then it all changed one day.
My wife and I were discussing our future home with my father-in-law when this question popped up.
“Do you know how to change the lights in the house?”
It seemed so trivial previously.
Yet at that moment, I was quite ashamed that I could not assure my father-in-law at that point.
All I could muster was that I could learn before hanging my head in shame.
Simple tasks that matter.
After I finally learnt the basics of fluorescent light change, I realised it was a relatively simple operation.
Much easier than groping around in the dark with torchlight.
And it turned out light changing was more often than an annual event.
In the same way, insurance is the same.
On the surface, it looks to be a complicated topic.
But it is an easy subject to master if you leave out all the complicated saving and investment elements.
It is about knowing what event you want to insure.
Who you want to protect.
And balancing your budget with the sum assured.
But what good does it do for you?
Learning what is insurance seems to be a fruitless task.
Your financial advisor will figure that part for you, right?
Just like bulb-changing, knowing insurance turns out to be more helpful than expected.
Let us go through why.
Help you make better financial decisions
In a way, it is true that financial advisor can be your source of information.
Their role is to ensure that you know what you are buying.
Thus, education is pretty much part of the job scope.
At the same time, you have to realise that part of the reason why people get themselves duped is when they trust a rogue agent too much.
Insurance education is the natural defense against insurance con-men.
You can smell a rat quicker.
And you know when the agent is mis-selling you.
Unlike a total novice who is blur all the time, you know when to stop your financial advisor and request that he repeats his explanation.
You have the knowledge to ask the pertinent questions that matter to you more than the general population.
You know what you want and thus, less likely to buy things that you do not need.
You are able to make meaningful conversation with your financial advisor since you are able to understand each other better.
A well-meaning insurance agent will be more than happy to know you come prepared.
Since both of you will be on the same wavelengths, it will be easier to communicate.
Instead of trying to explain what insurance is, his focus will be on your financial needs and gaps.
Together you can explore what is the best way to cover them.
Handy tool to have
Knowing insurance is a great life skill to have.
It does not stop being useful at the point of purchase but also during claims.
If you have a critical illness plan, a diagnosis of cancer should put you on the alert.
Lost a limb? Your personal accident plan will be in play.
Hospitalized? Nothing to worry because your fully integrated shield plan with rider will cover you in full.
Knowing when you can claim is good.
What is better is that you know how much you can claim for.
Your early critical illness policy will pay certain sum upon diagnosis.
Having an idea of the claimable amount allows you to devise a realistic plan to cope with the contingency.
It does not stop there.
Your friend is at a loss after losing a family member.
Help by making sure she will have financial assistance by way of a claim on the insurance plan.
Save money by going direct.
When you are sure of what and when you need, you have the capability to do it yourself.
The recent development in the insurance industry in Singapore has created a window of opportunity for you to buy life insurance directly from the insurance companies.
Most of the products that are available are simple straightforward ones.
Thus, it makes it easy for one to understand and fill their need.
By doing it yourself, you can reduce your premium too.
However, you must be confident in your insurance knowledge in order to take the leap.
You will need to navigate through the insurance terms and conditions.
In addition, you have to choose an insurer that makes it easy and simple for you to file the claim form as you have no middleman to do that for you.
Yeah, I am convinced. Where do I learn?
To fully understand insurance, you should take your time to read and understand how each type of life insurance works.
Everyone learns at different rates.
Instead of relying on your financial advisors and get stressed out trying to follow him, why don’t you pace yourself by learning with us?
We provide bite-size insurance knowledge so that learning is fun and easy.
You choose when and where you want to read about insurance and start as and when you like.
Free and with no obligation to buy!
Having the basic insurance is not a must.
But it is extremely useful to equip one with it.
Just like having a driving license.
Unlike many things in life, learning about life insurance with us cost you nothing.
Why not have that additional know-how and improve yourself?
Start today and become an insurance-literate person!
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.
The post Why on earth would I want to learn about insurance? appeared first on Singapore's Life Insurance Blog: Expert and Unbiased Views.