You are now reading:
What to look out for before buying insurance
Buying insurance is a highly personal matter that differs for everyone. Read on to determine which plans are for you!
Purchasing an insurance plan is like entering a long-term, committed relationship. It requires you to:
✅ Know the insurance plan well
✅ Find out if it is suitable for you
✅ Deciding if you can or want to say “yes” to it
Additionally, there are so many different insurance plans out there. So how do you go about considering which insurance plans are “for you”? Here are 4 questions to ask yourself:
1. Do you have any existing insurance plans?
Before you buy an insurance plan, you have to make sure that you actually need it. While you probably won’t knowingly buy two of the same insurance plans, it’s good to double check what you already have. This way, you won’t end up in that (awkward) situation of having overlapping plans.
| If you are… | Check if… |
| Working full-time | Your company includes insurance in your contract |
| A student | Your school has automatically applied for an insurance plan on your behalf |
| Neither and already covered | Your family members have bought insurance plans for you before |
2. Are you able to afford all the insurance plans you want?
While there are multiple existing insurance plans — and we have already narrowed them down to 5 essential ones — buying all of them will result in a hefty sum that you have to pay regularly. Are you equipped and ready enough to take on such a big financial commitment? Follow this 3-step thought process, and if your answer is “Yes” to all of them, you should be ready to buy all the insurance plans you have in mind:
3. Does your lifestyle require specific plans?
So what happens if you can’t afford all the insurance plans that you had in mind to buy? You will have to pick certain insurance plans that you need more than the others. This heavily depends on your lifestyle needs. For example, if you work in a high-risk environment, there is a higher chance that you might get into an accident or even lose your life. Thus, you may want to invest in an accident or life plan with a higher premium.
You may also need to prioritise purchasing specific insurance plans for certain assets that you have. If you have a house, you will need home insurance. If you have a car, you’ll need car insurance. Similarly, if you have a pet, you may want to consider getting pet insurance.
Another aspect to consider is what benefits you are looking for from the insurance plans you buy. If your cash flow is $unpredictable, you may want to get a flexible plan that allows you to pause premium payments when you need to. On the other hand, if you have a high-value asset, you may want to purchase a plan with a higher payout.
4. Have you checked out all options available to you?
You now have a better idea of what insurance plans you would like to buy. But wait! Don’t dive straight in and make the purchase immediately!
Check out the plans from different insurance companies, compare them side by side, and pick the one that suits you better. Most insurance companies have similar plans that offer different benefits. So it’s important you get the one that you can get the most out of.
After you have answered all these 4 questions, you should be more well-equipped to start purchasing your insurance plans. If you’d like to learn more about the basics of insurance and how you can benefit from coverage, read this!
