Asking the right questions can go a long way towards getting the most out of your time with your financial adviser and choosing the right policies to buy. 

Here are some questions you can ask:

1. What kind of insurance do I need?
   The type of insurance you need depends on what needs/objectives have been identified, be it for healthcare, protection, long term savings, investment or retirement.
   
   Even after you have purchased an insurance policy, you should review your needs and objectives regularly as they may change over time.
   
   
2. What will my insurance policy cover?
   You should study the product features and benefits and be clear as to what your policy covers or does not cover.
   
   
3. How much insurance cover do I need?
   The amount of benefit you need will depend on many factors such as:

• The number of dependants you have
• Existing debts or mortgages
• The level of financial provision you want for your family when you are no longer there or able to provide
• How much you need for your children's education
  

Not everyone will be able to afford to purchase all the insurance plans they need at one go. Your adviser will help to prioritise your needs and offer policies that are affordable.

4. How much will I be paying for insurance cover?
   The amount of single premium (one-time lump sum) or regular premiums depends on the level of insurance benefits you wish to receive.  There may be more than one type of plan that can meet your objective with different cost-benefit pricing.
   
   
5. What happens if I fail to pay the required premiums?
   You have a grace period after the due date during which you can pay the premium with no interest charged.  If you do not pay your premium within this grace period and as long as your policy has sufficient cash value, a policy feature may automatically pay your overdue premium by taking a loan against the policy’s cash value. This keeps your policy in force but you will have to pay interest on this loan.
   
   
6. Should I replace an existing insurance policy?
   Buying an insurance policy is a long term commitment and early termination may result in you receiving an amount that is less than the total premiums paid.
   
   If you develop a health condition after buying the existing policy, any subsequent new policy may not cover you for that pre-existing condition.
   
   If you are unable to continue paying premiums on your current policy, you should consult your financial adviser to consider how your policy can be kept in force.  It may be possible to reduce the sum insured which in turn will reduce the premiums to be paid.
   
   
7. What happens if I terminate my policy?
   Early cancellation of a policy may incur additional fees and charges.  What is more important is that you may be losing valuable benefits.
   
   Buying an insurance policy is a long term commitment and early termination may result in you receiving an amount that is less than the total premiums paid.
   
   If you develop a health condition after buying the policy you are now terminating, any subsequent new policy may not cover you for that pre-existing condition.
   
   

Contact any one of our member companies to put you in touch with a financial adviser. Start by first identifying the level of coverage you have with the protection gap calculator.

Find out more about:

• Your participation
• Tips on insurance products
• Direct Purchase Insurance (DPI)
• Financial Advisory Representative’s role