Getting it right the first time: Why it is so crucial in insurance

Posted 11 November, 2018 by Surely
in Pitfalls to Avoid

Doing something the first time is always daunting. You have no prior experience and most of the time, you have no knowledge at all. You worry if you are doing it right or even whether you should be doing it at all.

Worse, the results may not always be pretty.  Just think of your first kiss and you know that is true. Unless you are a Forever Alone Bui Bui, then well you can imagine going out on a date with your right hand.

The first time you encounter insurance is the same. It may be an unplanned meeting with an insurance advisor at a roadshow or you are introduced to one by a friend. You are confused by all the terminologies but yet you come off signing up for a couple of policies.

It can’t be that bad right?


You may be just right.


By some chance, the insurance advisor is a great one. He probes carefully on your lifestyle, calculates your protection needs to the very dollar and meticulously works out a perfect insurance portfolio for you.  To top it off, he even brings you to your favourite restaurant and of course, he foots the bill!


Best if he pays for the drinks too.


Fortunately, you are an obliging client. You have no budget constraints and no objection at all. You sign on the papers, pay your premium and may even have made a claim here and there.

The stars must be aligned perfectly for you to have that happen. More often than not, something will mess up. We hear a lot of stories about bad advice but we also forget that clients can be quite idiotic at times.

“No no no, I don’t have enough money to pay for this PA plan and I don’t have accidents anyway.”
The client then proceeded to drive away in his new BMW and crashed into the wall 10 minutes later.

The moral of the story?
Don’t drive BMW.
And perfection doesn’t happen often enough.


So what if you did not get my insurance right the first time?


No biggie. You can just review them later on and make changes.

Insufficient cover? Just buy more lah.
Wrong policies? Change to the right ones loh.
At least you have some form of insurance right?

We see two problems with that though.

First, you are less likely to review your policies now. You adopt the mentality that you already have insurance and thus, don’t need it any more.

Two, you may meet with unexpected roadblocks when you switch policy or buy more.
These are 3 obstacles that you face when you don’t get your insurance right the first time.


Insurers do not want to sell them to you.


This is the worst nightmare. When you are ready for insurance, the insurers give you a dirty look and walk away. Not because you are too poor but you are too unhealthy for them. During the interval years, you may have developed pre-existing conditions that make you pretty much uninsurable.


Looks like money can’t buy you insurance either.


One really obnoxious thing about insurance is the fact that insurers only pick healthy people to protect. While we understand it is part and parcel of the business, we can’t help but find it rather annoying.

>> Find out what other insurance things piss us off <<


It cost you more


By the time you buy more, the cost of insuring has risen. What just happened?

Electricity, water, gas and literally everything has increased in price recently but most of the time we don’t know why. Thankfully (or not), we can explain the price hike for insurance.

First, you are older now and we know vintage doesn’t come cheap! You also may have a chronic illness such as high blood pressure or developed a smoking habit. You can be sure that the insurance companies are going to charge you much more when they know that.

>> Don’t you dare declare that you are a non-smoker!? <<


The plan is no longer available.


It is rare that insurance companies remove plans without a replacement. Nevertheless, this happens recently and thus it can happen in future too. If you have yet to get yourself a full hospital rider, you can no longer get one anymore.

If you have no idea what we are talking about, these are some articles about Medishield Life that you should catch up on.


A dummies guide to Integrated Shield Plans


Does Medishield Life give adequate medical coverage? A long, hard look says no.

The buffet table is now closed – What will become of us?


First timers, don’t worry. We have your back


Now you understand why getting it right the first time is so crucial but how can you do that?
Just 3 easy steps really.

You have to start reading up on insurance before you meet any insurance advisor.  Like every successful sportsman out there, the pre-game preparation is paramount.  And you can start right here.

Next, don’t restrict yourself to just one financial advisor. Go out there and get a 2nd or 3rd opinion. There is absolutely nothing wrong about it. You get to learn more and know which one offers the best advice.

Lastly, take a minute or two to check out our Discover tool. It should help you immensely on getting things right the first time.

Have fun and may you have an awesome first time! 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.


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