Previously, we wrote on why you should have an insurance policy for various things in life. You can check out that article here:
So, let’s say you’re thinking of getting insurance for yourself now, but you don’t know where to start or how the whole thing works. In this article, we break down the process for you in 5 simple steps.
1. Use a comparison tool to find the insurance for you
Finding an insurance provider on your own isn’t the easiest thing. If this is your first time getting a policy, the fine details and terms can also be very confusing. Above all, you might not even know which insurance to go for.
In cases like this, the best thing to do would be to use a comparison tool. Comparison tools will list all your options, state the pros and cons of each and might even be able to recommend something for you based on your budget and needs. In case you didn’t already know, CompareHero.my is a comparison website that can help you decide on suitable financial products, including insurance.
2. Apply for a policy through an agent or a trusted 3rd party website
Once you’ve picked your preferred insurance provider, you can contact them or scout for a reliable insurance agent. Get recommendations from trustworthy sources and be on the lookout for scam agents. Be sure to ask the agent as many questions as you can so that you know exactly what you’re getting.
Besides talking to an agent, you can also sign up through a third party or comparison website such as CompareHero.my. All you need to do is leave your details with us and we;ll take care of the rest. We’ll then contact you to give you more information.
3. An insurance underwriter will analyse the risks in insuring you
Now regardless of how you apply for the insurance, before you actually successfully get your policy, an underwriter will need to decide if the company can assure you. What’s an underwriter, you ask?
They’re basically someone who will analyze all the risks the insurance company may face in insuring you. Essentially, they look at whether you qualify to be insured by the company or not. If you do qualify, they will then decide how much coverage you should get and how much of monthly premium you should pay.
4. Select your beneficiaries—the people who will inherit your insurance money
The main goal of getting insurance is to protect yourself financially, but another reason would be to ensure your next of kin might inherit what you leave behind.
Similar to when you write a will to pass down your inheritance when you’re no more, you can also decide who will get your insurance money later. It’s important to select your nominees because if you don’t, it can be a very difficult process for your family to receive that money; there’s a lengthy legal procedure which can take years to complete.
Each insurance provider may have their own rules and regulations regarding who you can nominate and how to go about it in the first place. Make sure to check with them before signing up for your policy.
5. Time to start paying your premiums!
Once all of the above is done, you would have successfully gotten your insurance policy. Congratulations! You’ll have to pay a fixed premium monthly to continue receiving coverage from your insurance provider. Make sure you don’t default on your payments or your policy could lapse or be terminated altogether.
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