INSURANCE-Part 1

Hi there!

Insurance is a topic many would like to avoid. I really do not know why but its a paradox!

I believe you too would not want to talk about this or continue reading this article hereon. Nevertheless, please stay on and have some patient to read what i am going to share with you today.

I am not trying to promote any insurance policies to you, so lean back and read! My friend from the insurance industry told me that many are shying away from insurance because of the insurance agents themselves. To my astonishment, he told me that there are many insurance intermediaries in Malaysia that pesters potential clients into forcefully buying incurance coverage policy. Much has to do with the sales target the intermediaries impose on their agents. The bigger the sales the agents brings in the higher the commission the intermediaries would remunerate them. Therefore, like it or not, the agents would put their personal interest first followed by their potential clients. Should not it be the other way around?

Just ask your self how many times your servicing agent (or any other agents) approached you with 'half baked' knowledge to persuade you into buying the products they were promoting? I believe many of the agents would have skipped the very fundamental element, i.e., analysing your needs for coverage before closing the deal. If you are one of the clients who had bought insurance policies based on affordability at the point of sales, it is time for you to re-look at the coverage again!

There is nothing wrong to purchase insurance based on your surplus of fund at the point of concluding the sales but you must know what you are doing!! There are 2 (two) things you must remember prior to buying an insurance policy.

1. You can buy a policy based on the surplus of money you have or would have around the time of purchase.

2. Alternatively, you can also buy a policy based on the insurance coverage needs.

While the former is very common method, the latter is undoubtly the most correct method to based on. I will tell you why. Since i have the time to share, i shall also teach you how to do the calculation. Hmmm...! How nice of me!

Do look out for my next article for the details!