7 Important Things To Look For When Purchasing Insurance
Unwittingly, advances in information technology and
information disclosure have prompted the public to become financially literate
in Indonesia. Information on the products, services, distribution and profiles
of financial service providers is also increasingly easy to obtain and more
transparent to the public.
Especially regarding the insurance industry, both life
insurance and general insurance, this becomes a blessing in itself. The
confidence in insurance and professional products involved in the industry has
increased dramatically, and there has been a significant increase in sales in
the last 10 years. It can be said that this is a positive impact of the
increased awareness in the community about the need for insurance and the
success of regulators and industry increases insurance minded in the community.
Unfortunately, with the characteristics of Indonesian
society is very communal and tend to be conventional, there are some
misperception and wrong decision making that already used as a foundation when
buying insurance products. Not infrequently this becomes a commotion to the
realm of law in the future. Of course not expected this continues in the
future, is not it? For that it's good we recognize any errors in insurance in
the community.
1. Buying unneeded
Quite a few insurance products, mainly life insurance, are
offered on a friendship or social basis. With psychological pressure or not,
and consciously or unconsciously, it often leads to an unnecessary or
unnecessary purchase. I once encountered a case where an elderly person but
bought Unit Linked products with an aggressive fund dominated stock just
because the offer was his relative. Or a bachelor who happily purchases
endowment education fund insurance product because the offer is ex colleague in
the old office. Sooner or later it will be realized, that it has done
"wrong buy" and expectations are not achieved. Then it ends with
dissatisfaction and fuss ....
The key: just buy the needed and do not tolerate a bit
because insurance is a long-term contract. If the product does not meet our
needs, then set a heart to reject it. If you want to help friends or relatives,
use other media that will not bind each other for long.
2. Not buying
required
This is similar to the above points, and often comes
together or complementary. A seller of insurance products has a code of ethics
and is trained to be able to conduct consultative sales. This means sales are
only done if it suits the needs of the prospect. Unfortunately the various
products offered provide different commission rates of sales. And for unethical
sellers, it is quite common where only offering and exposing products that
provide a large sales incentive is not necessarily required by the prospect. As
a result there are two errors at once: which do not need to be purchased, while
the necessary even not bought because it is not offered.
The key: discipline with the seller of insurance products.
You must have a financial plan if you will meet with an insurance sales agent
or better to reject an appointment to meet. If you meet, you must discipline
yourself first. Only allow the agent to offer the product you mentioned earlier
as your requirement.
3. Does not match the
value of protection needs
Often mistakes start from yourself as a buyer. You pay, and
you have to decide what you need. Every individual is unique and it is not
appropriate that you stack your financial plan on an illustration or an
insurance agent sales presentation. You have to know what type of product you
need, for how long, and for what protection needs. The job of an insurance agent
is to capture the information, then locate the appropriate product and the
appropriate protection scheme. You are in complete control, not them.
4. Not adjusting
financial ability
A number of insurance products are packed in such a way both
actuarially and in marketing with very interesting. And this is fine. But you
have to remember that everything is not free. Forget the fun that comes from
offering "No Claim Bonus", or "Loyalty Bonus", or
"Active Payor Bonus". It all comes from your own money. The money you
pay regularly as a premium, and certainly only a fraction of the profit that
appears on the insurance contract that will be returned to the buyer.
Apesnya, because it is dark eyes, many prospects who play a
hit and decide to buy. On the other hand, he does not take into account whether
he will be able to pay as scheduled premiums set. Indeed, to avoid the policy
into lapse (cancel) the insurer often provide premium loan facility (certainly
with high interest), and this often abort clause to get a "bonus".
Forget about this bonus. You better focus on how much your financial ability
and adjust to the needs of protection you have.
5. Not proactive and
involved
Indonesians in all walks of life have a tendency to be bossy
and happy to be served even for even small-time clients. And service providers
and sellers, are often happy to provide extra super services. Make no mistake,
this could be bad for you !!
The more you are not proactive in taking care of your own
insurance, the more you are in the realm of your insurance management. There
are two disadvantages. First, you are increasingly dependent on your insurance
agent, while they are not always there. Besides they often provide extra
services that do not exist in the company's SOP, consequently when you are
served by others, you will be inflamed because it feels "the service is
down !!!"
The second disadvantage, you do not know well how the
reality of your insurance product is managed, even it could be anything your
rights and obligations you do not know well. Almost always encountered
policyholders only know about the "contents of the insurance application
form", "receive the book policy", "pay premium", and
"there insurance benefit". Though often insurance products,
especially life insurance, is packed with very creative and profitable for its
critical customers.
6. Not peruse the
policy and insurance contract
Because buying from a trusted trusted person (a friend or
relative), then feels that the value of his policy is small, or feels limited
to "help", consequently the policyholder often does not read
carefully the contents of the insurance contract, including the suitability of
what ever presented in the illustration and oral explanation of the agent.
Predictably, later tensions will arise when discontent is felt because of the
difference between what is understood and what is contained in the contract.
Rigorous reading also provides an opportunity for
policyholders to understand their contingent rights (the latter right when a
clause occurs), which is bound to arise in the future. Or if there is an
unknown term or understanding, can be identified earlier if this contract
document is read carefully.
7. No heed of free
look period facility
This is a grace period facility where if at this time you
feel wrong buying, not satisfied with the policy received, or dissatisfied with
the service or product purchased, then you can cancel this purchase and get
paid premium returns. Related to the point no 6 above, often because it does
not care about the correct purchasing process, the policyholder does not know
or ignore this grace period. As a result when it appears disappointment and
intend to cancel the policy already purchased, feel aggrieved because it did
not get a premium return.
SO HOW TO OVERCOME
THE MISTAKES?
Easy. Just the following three steps:
- Create a thorough and comprehensive financial plan . So
you know exactly what is needed, how much and for when.
- Self-discipline to run the process of purchasing and
decision making is good and right. Do not be affected by agents, or promotional
strategies. Focus on your own needs and your ability to pay premiums consistently.
Do not fall asleep with various offers of bonuses, discounts or gifts, because
all of it will use your own money you know.
- Read insurance contracts carefully , so you know your
rights and responsibilities and the benefits and consequences of those things.
Congratulations Insurance is good and right!
