6 very important questions to ask yourself before you sign that Life Insurance policy

Your decision to get a Life Insurance policy is VERY important, so make sure it's the right plan or policy for you and your family. But how would you know if it's the right one?

Here are 6 very important questions to ask before signing that policy.

FIRST of all...

Ask yourself: "Is this policy is in line with my goals?"

Recently, I met someone who had three, yes three, insurance policies from the same company. After probing why she got three policies, I discovered that she bought them because the agent was a close relative who needed sales.

I'm not saying that having three insurance policies is bad. But it must be in line with your goals in life (i.e. short-term, mid-term or long-term).

This means...

"we should NOT buy an insurance policy kasi nahihiya tayo sa agent, o na-pressure, o gusto lang natin gumaya sa mga friends natin."

Kung pasok sa goals, the SECOND question to ask is this:

"Is the policy within my budget?"

DO NOT get that policy if the monthly premium is more than 30% of your monthly income. You can get overstretched and sacrifice other important expenses for yourself and your family.

After all, Life Insurance is not the only important financial commitment we have in life. If it's over your budget, you can ask the agent to lower the coverage a little or remove some riders.

In my opinion, it's best if you shop around for other insurance policies. Compare prices and features offered by various companies before you make your decision.

Caution lang. I'm not saying na pag mura yung product ok. We cannot sacrifice quality for the sake of price.

Hence, the THIRD question you should ask is...

"Do I understand the policy's features?"

Most Filipinos pay for insurance policies but do not understand how it works. So, before signing, ask the agent questions about the policy; even tough questions.

Filipinos are usually shy when it comes to asking questions or challenging something. But it's your right to ask questions about your policy.

"Dapat alam natin yung ating pinipirmahan kasi pera at kinabukasan ang pinag-uusapan dito."

The FOURTH question to ask yourself is this:

"Is the insurer is a TOP company regulated by the Insurance Commission (IC)?"

In the Philippines, all insurance companies are regulated by the government to ensure that their capitalization is more than enough to deliver their financial obligations.

This prevents scammers and fly-by-night insurance companies from fooling people. Pero hindi lang government regulation and dapat isipin.

The product you purchase should be provided by a TOP insurance company. The top 5 insurers listed in the Insurance Commission are good choices.

"If you ask me, I would put my money in the company ranked at No.1."

Syempre, hindi lang ranking ang titingnan natin. Also ask this FIFTH question:

"Does the company have excellent reputation?"

Before I got my policy from Sun Life, my wife and I did research by reading internet forums and blogs on insurance companies in the Philippines.

We also checked for online rants and critiques about insurers in the Philippines that are slow to process claims, do not deliver what they promised, and are just good in marketing their brands but are poor in service. It's also important to check if the company is sustainable. Sun Life, for instance, is among the Top 100 Most Sustainable Global Companies. Only a few insurance companies belong to that group.

After a long process of comparing notes and weighing the positive and negative comments about these Insurance companies, we concluded that Sun Life has excellent reputation and is highly sustainable, and chose it to be our insurer.

Your research may end up with a different conclusion. But my point is this: DO RESEARCH BEFORE YOU PUT YOUR SIGNATURE ON THAT CONTRACT.

Assuming that the plan offered is in line with your goals, is within your budget, has features you understand, the company is a top insurer, and had good reputation, it's time to entertain the offer.

But, before we forget, here's the SIXTH question:

"Am I committed to finish my required paying period?".

There are those who get Life Insurance policies but discontinue paying after 2 or 3 years. If they do that, their initial payments would be put to waste. Sayang naman yung ibinayad na pera. Thus, if it's a 5 or 10 year paying period, make sure you commit to finish it.

In sum, here's a rundown of those six questions:

If you're convinced that it is the policy that's right for you, then go ahead and sign that contract. Don't procrastinate. Commit yourself to finish your premiums. It may be difficult at first, but in the long run, your insurance policy will provide the money you need when you need it the most.

Thanks for reading my article. Send me a message for questions or request for an appointment by filling out the form below. It's always good to meet 1-on-1 to discuss your financial needs and plans. Also, feel free to put your comments below. I hope to hear from you.