What to look for when buying life insurance?
Joining life insurance is easy, but the first time will definitely have difficulties and surprises. What to look for when choosing life insurance?
Joining life insurance is easy, but the first time will definitely have difficulties and surprises. Please refer to the notes immediately when participating in life insurance.
Valuable life insurance experience is a must to read the product before buying, declare honestly and accurately, participate at a moderate fee and maintain a long-term contract.
Understanding life insurance and insurance companies
Understanding life insurance and insurance companies is the first and most important thing for first-timers.
First of all, you need to understand what life insurance is, the purpose of life insurance and what benefits or benefits it brings to you... from which you can decide whether to buy it or not.
After that, you need to have a basic understanding of the insurance company such as legal information, origin, history, operating model, etc., so that you can feel secure when deciding to participate in insurance. Especially with the company you choose, you need to learn carefully about the size, agency, details of current products, customer service, interest rate information, investment funds...
Financial analysis and personal needs
Before participating in life insurance, it is very important to identify needs and financial analysis to choose the right product and design a policy with the most suitable premium.
Important note: each policy has only one main insured, so it is necessary to clearly define what the purpose of participation is and who buys it for. For example, in the family, if you are not financially rich, you should join the breadwinner first to protect the main source of income for the family. Or, if the purpose of sending your child to study abroad is, you should let your child be the insured, consider the father or mother who has a higher income and is younger to choose to buy insurance. Or if you want to protect the whole family against risks, you should choose the breadwinner and combine the names of the remaining members in the same contract.
Personal financial analysis includes:
- Future financial needs include what goals, should be divided into short - medium - long-term goals. The desired amount corresponding to each goal, the amount of savings available, the time to complete the goal...
- Current financial capacity: Total income including salary bonus, business investment interest, interest on bank deposits, dividends from capital contribution, house/car rental... minus total Expenses include basic living expenses, children's education expenses, investments, entertainment, self-investment, bank liabilities, money to support dependents...
Declare your personal and family information honestly on your claim file
Most customers when participating in life insurance do not have to have a medical examination except for some special cases such as large denominations, special medical history, etc. Honest declaration is a very important factor because information Information on the claim file is the basis for the insurance company to charge and decide to pay benefits to the insured.
Declare truthfully personal information when participating in insurance
The most important things to keep in mind when applying for an insurance claim are:
- Personal information of the Policyholder and the Main Insured including: Name, gender, date of birth, ID/CCCD/HC information, nationality, ethnicity, marital status, relationship with Insured person, occupation, position, income, contact information...
- Health status and medical history of the Policyholder and the Main Insured: height and weight, smoking status, alcohol consumption and drug use, participation in risky activities A history of diseases that have been diagnosed or examined such as heart disease, lung disease, cancer, diabetes, high blood pressure... And symptoms of respiratory, digestive, endocrine, skin, neurological...
In addition, the information about the Sub-Insured, the Beneficiary and the insurance product information needs to be filled in correctly, completely and accurately.
Special Note: Must be signed by the Policyholder and the Insured, clearly stating their full name on the insurance claim file.
Learn more about insurance benefits
In the set of contracts the customer receives, there is certainly an illustration of insurance benefits, this is the most detailed record of benefits to help you understand your benefits. Especially when learning about the benefits of an insurance product, you need to make a clear distinction between the main product benefits and the supplementary product benefits. And the main product benefits will be shown on the illustrated table of the contract.
In it you need to understand what benefits the main product has, the exclusions and how long the waiting period is. How much is the payment of each benefit, the total benefit for each contract year, and pay attention to the illustrated interest rates. Cash benefits, dividends, advance, partial or full withdrawal, contract maturity are specified in the product terms.
For complementary products: how many complementary products are included, the effective date, what benefits do these products have, is there a waiting period, how much is the payment...
In addition, you need to distinguish 3 types of products including traditional insurance products, universal life insurance products and unit-linked insurance products. Because these three product types have different main product benefits. Immediately read the article on how to distinguish different types of life insurance so that there is no confusion about the main product insurance benefits.
One of the key things to keep in mind when buying life insurance is the most important primary product benefit. Because the main product benefits stick with you for the life of the policy, how old are you protected, the premium rate stays the same throughout the membership... As for the optional add-on product, can be renewed or stopped every year very flexibly
Choose a reasonable insurance premium
The premium level is very important in determining the ability to maintain a long-term contract in the future, so it is important to pay attention to choosing the appropriate premium based on the above financial analysis and personal needs. The most reasonable fee is 10-15% of your total income.
In addition, it is also necessary to pay attention to the flexibility of increasing and decreasing the fee during the participation process, how long the payment period is compared to the contract term, the periodic payment of fees, the forms of fee payment - choose the form. Which is more advantageous. If I forget to pay the fee, how long can I renew it (usually 60 days), when does the contract lapse, what are the conditions for reinstatement of the contract...
Understand the regulations on payment of insurance benefits
The company has the right to refuse to settle insurance benefits if the customer submits a request for settlement of insurance benefits later than prescribed, so an equally important point to note when participating in insurance is to understand the payment regulations. paid by the company for each specific product.
Firstly, the application deadline will depend on each risk case, usually 12 months in case of death or critical illness; 30 - 60 days in case of an inpatient hospital stay or an accidental injury resulting in internal damage; from 60 - 90 days from the time the policyholder gets an accurate conclusion about his/her medical condition...
Second, the claim file for insurance benefits of each company will be different for each case of hospital stay, accident, injury or death...you need to know it right from the start to avoid delays caused by lack of procedures.
Third, the normal time to process insurance benefits is 30 days from the date the company receives a complete and valid dossier.
Now, some companies even make it possible for participants to quickly file a claim within a few clicks.
EasyClaims applies to claims for hospitalization benefits, helping users to not need to log in with a password, fill out an insurance claim form or submit original documents (except in some special cases). special), reduce complicated procedures.
Thus, instead of going to the office or asking an agent to help, Manulife customers can make a claim online. Insurance users log in with their identity card number, citizen ID or passport with the same date of birth.
The payment methods are more diverse from wire transfer, money order, minus next period fee to cash receipt. On average, each customer only takes one minute to complete the entire insurance claim process on this website.
Notes after signing the insurance contract
The term of the insurance contract is very long, so after signing the contract, the customer still needs to note a few points to ensure benefits:
- Pay fees in full, periodically;
- Keep papers and invoices for payment of fees, if any;
- If detecting incorrect declaration / wrong age, gender, it is necessary to notify the company immediately for timely handling;
- There are any changes in personal information that need to be notified to the company, if any information needs to be corrected or additional declaration needs to be made to change;
- If you go abroad, you must also notify the insurance company in advance of the time, purpose...
- Regularly check the contract status on the company's applications/software/SMS…
Each insurance policy has clear information, benefits, and terms, so when buying life insurance, customers need to carefully study each item, especially don't ignore the 7 golden notes above to Make sure your interests are protected.
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