When I last wrote about getting life vs. term insurance, and firing my insurance agent now that MAS has made it possible for me to buy direct, it caused quite a stir as the articles were being shared furiously to spread the word that Budget Babe doesn't trust most financial advisors. Not surprisingly, I got quite a few hate mail from insurance agents after, but that's not going to stop me from writing on this topic because I think it's important that all Singaporeans start to learn how to be smart (and not swayed) when it comes to buying their insurance.
If you're keen to understand why, you may want to take a look at this piece I wrote for DrWealth on why the best financial advisor is ultimately...myself.
The biggest mistake people make when buying their insurance is trusting their agents blindly, without bothering to read the T&Cs, exclusion clauses, or asking the questions they should be asking.
Most insurance agents will just highlight certain parts of the policy to you, but few spend enough time running through every single important detail.
Take a look at what happened recently to a friend of my friend. His 60-year-old father was diagnosed with pancreatic cancer, and only proceeded with the operation procedures AFTER receiving a verbal confirmation from their insurance agent that everything would be claimable up to 600k a year.
Note that the agent was the same person servicing this family from the start till the end. Yet this happened.
Read the rest of the story below to find out more.
Names have been omitted to protect the family's privacy.
Here's AIA's letter in full.
Lesson learnt?
Never simply trust what your agent tells you.
Make sure you know what you're buying and what you're entitled to. Don't be afraid to ask the hard questions about claiming procedures, coverage in different situations, etc.
Remember, the best financial advisor is ultimately yourself.