Nicotiana is a herb that was popularly used by Americans in the past.
It has been chewed, sniffed, smoked, eaten & juiced for medicinal purposes and for its ability to relax and stimulate the users at the same time.
It is also an anti-inflammatory agent that can delay the onset of Parkinson’s disease.
Wonderful, isn’t it?
Not until you know the other name for Nicotiana.
We are not kidding.
Until the 1950s, doctors had been promoting the usage of tobacco as a multi-purpose medicinal tool.
That was when science caught up and changed everything.
What has it to do with my policies?
From the day you bought your insurance policies to today, things have almost certainly changed.
We are not suggesting that your insurance policies have turned harmful.
However, holes may have appeared and you need to know where to look out for them.
Here are some places you can focus on during your review.
Critical Illness Definition
On 1 August 2014, Life Insurance Association (LIA) revised the definitions of critical illnesses.
They expanded the list of Critical Illness (CI) from 30 to 37.
More importantly, they abolished the previous maximum limit of 30 CIs.
If you have bought a CI policy prior to 2015, you have to relook the terms and conditions again.
There are CI policies out there that may provide a wider scope than your old one.
If you are in perfect health condition, why not consider replacing the older CI policy?
This is an especially delicate situation to touch on as not many advisors like to go there unless they are churning policies.
However, if you can get a better coverage at a similar price at a standard risk to replace an inferior product, we cannot see any reason not to.
Early Critical Illness
For early Critical illness (ECI) coverage, it is not available until the recent years.
If you have not upgraded your coverage needs for a while, this is a crucial area to look into.
With better survival rates from dread diseases, it is absolutely worthwhile to seek treatment as soon as possible.
Signing off as you have already purchased one?
We have to remind you that the early ECI insurance policies are often costly and lacking in depth.
The recent ones are more cost-effective and cover more than one ECI occurrence in a single policy.
A better coverage with cheaper premiums?
We will never say no to that.
You may not remember this.
But your insurance company surely does.
A policy loan was taken out in your crisis years.
Or you have inadvertently taken a premium holiday.
Now it is just sitting there, incurring loan interest.
The loan interest may differ from company to company but trust us, it is rather high.
You may want to make arrangement to have it paid off before it makes a serious dent in the maturity value of your policy.
It may be an endowment policy that is targeted for your child’s education.
Or an Investment-linked plan to fulfil your dream of buying a Mercedes.
Even a whole life plan that you plan to convert into an annuity for retirement later on.
Regardless of the plan type or your goals, you should never be careless with your money.
If the expected projections are on par with your expectations, great!
Otherwise, you may have to take other steps to improve the situation.
It could be to set aside more savings now.
Or downgrading your ride to a Proton.
Some may even choose to bang the tables at the insurance company.
It is really your choice.
We just do not want you to be caught off-guard on the maturity date of your insurance policy.
A word of caution
We have to be extra careful here.
This should never be taken as an article to support churning.
We absolutely abhor churning.
However, do we hate to see perfectly healthy consumers paying over the top for inferior products?
The answer is an undoubtedly, unequivocally and unabashedly YES.
Before you go about replacing your policy, make sure that you know what you are doing.
Otherwise, please seek professional assistance from your advisor to be sure.
Until the next time
You must be wondering.
When is the best time to review your policies?
We have offered some clues here.
At the same time, we urge you to do it today.
Because you have just learnt what to look out for.
Dust off your policies and start rectifying any coverage shortage right now!
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.