Guidelines in Choice of Insurance Policy

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Guidelines in Choosing Insurance Policy

1. Choose an insurance company that is reputable, financially stable and has a good payment track record.
2. The costs of an insurance policy can vary greatly between insurance companies. Hence to compare premiums when looking around. Be sure to compare, as much as possible, policies that are similar in type of coverage, sum assured, maturity, provisions and others as deem fit.
3. When looking for Investment Linked Policy, take note of all the charges. Study the performance of the underlying unit trusts.
4. Choose a qualified insurance agent. He/She should be certified as a Chartered Financial Planner, Chartered Life Underwriter, Chartered Financial Consultant or other equivalent professional qualifications. He should display great understand of all insurance products, be willing to explain in detail the various types of policies and be able to recommend those that suit your needs. A good agent will be willing to spend time with you to review your insurance plan.
5. Please note that an insurance policy is a legal contract after all. As such you can expect it to have a lot of provisions or legal clauses. These clauses are there to define a policyholders' rights and obligations. Hence you should read carefully all the fine print before purchasing the policy.
6. When signing up for a policy, please complete the form honestly by disclosing any material facts that might affect the decision of the insurer's decision to underwrite your insurance needs. Failure to do so may result in your policy become invalid even if you have paid your premiums.
7. Accuracy of the facts disclosed is important as well. Please disclose them to the best of your knowledge. Failure to do so, again may result in your policy become invalid. Please note that once the policy has been in force for a certain period of time, the insurer cannot dispute or dishonor the contract unless there is evidence of your intentional dishonesty to deceive the insurance company.
8. After receiving the policy document, check that it is the type and amount insured that you applied for. Do check that your name and NRIC number is correct on the policy documents well.
9. Keep the policy document in a safe place.
10. You have the right to cancel the policy in writing within 14 days after you have received the policy. Any premium paid by you will be refunded after deducting for any medical examination fees incurred in assessing the insurance application.
11. If there are any dispute, bring your case to the senior management of the insurance company. If the result is not satisfactory, you may bring your case to Insurance Disputes Resolution Organization(IDRO). Please ensure that your case is submitted within six months of the company's financial decision. If you are still not satisfied with the result, you may consult your lawyer for any legal action you can take against the insurance company.