Key Questions to Ask

Ask your financial adviser representative...

On insurance protection

  • What kind of insurance policy do you recommend and why?
  • What will my insurance policy cover? What kind of benefits and limitations does it have? Will it meet all my insurance protection needs? What exclusions are there? If I already have some life insurance coverage, how does the recommended policy help me? Will I be over-insured?
  • What if I want to change the amount of coverage as my needs change? What kind of flexibility do I have? How much will it cost now or in the future?

On investment

  • How will the recommended product meet my investment objectives? What are the returns and risks like? Can I lose some or all of my money in this plan? Why is the product suitable for my risk profile?
  • What does it mean if some of my returns are guaranteed and some non-guaranteed? What are the risks for my non-guaranteed returns?
  • If I am buying an ILP, tell me what funds are available? What are their investment objectives, risks, performance track record and their charges? How do I select a fund based on my risk profile? Can I lose some or all of my money?
  • How does the product you recommend fit in with my other investments? Will it add more risk to the portfolio of products I now have?
  • What other investment products will suit me?

On premiums and commissions

  • How much premiums will I be paying? How long do I need to pay the premiums for? Are there any riders which allow me to stop paying premiums for my policy if I become disabled and still benefit from the policy?
  • What happens if my financial needs or personal circumstances change e.g. I am retrenched or retire early? What if I can’t keep up with premium payments? What options do I have? Can I stop paying my premiums temporarily? What happens to my insurance coverage if I stop paying my premiums?
  • How much are you being paid for selling this policy? What if I buy other types of policies?

On withdrawals and termination

  • Can I make partial withdrawals of cash values? What happens if I make an early withdrawal or terminate early? What will it cost?

    If you are uncomfortable with the recommendation or want to know what else is available, do ask your financial adviser representative. Do shop around to see what other insurers are offering and then compare the different policies.

Here is a nifty checklist for you to refer to:

 The above information is prepared in collaboration with the Life Insurance Association Singapore.