1. Insurance is not an investment, it’s protection
The core purpose of insurance is to transfer risk, not to make you rich quickly. Many people mistakenly view insurance as a way to invest, but its real value lies in providing financial protection when unexpected risks occur, giving you and your family peace of mind.
2. Coverage amount matters more than premium
Don’t just ask “how much premium can I afford?” — instead, ask “is the coverage amount enough to handle potential risks?” Adequate coverage ensures you and your family are well-protected.
3. Your health affects your eligibility
When applying, always disclose your health condition truthfully. Hiding medical history may lead to claim rejections in the future.
4. Understand the waiting period
Most insurance plans include a waiting period (e.g., 60 days for critical illness, 30 days for medical coverage). This means your policy won’t take effect immediately.
5. Adjust coverage as your life changes
From being single, getting married, raising children, to retiring — your insurance needs change. Review and update your policy regularly to match your life stage.
6. Don’t rely only on company-provided insurance
Employer group insurance is a bonus, not a lifelong guarantee. Once you leave the company, the protection ends. Always secure your own personal coverage.
7. A medical card is not enough
A medical card helps cover treatment costs, but it doesn’t replace lost income. Critical illness coverage and life insurance are equally important.
8. Insurance contracts are legal documents
Every clause matters. Before signing, make sure you understand what is covered, what is excluded, and under what conditions claims can be made.
9. Balance coverage and budget
A healthy benchmark: premiums should take up about 10%–15% of your income. This way, it won’t strain your daily life while ensuring long-term affordability.
10. Choosing the right advisor is crucial
A responsible advisor does more than sell a policy — they accompany you and your family through life’s risks and changes, helping you make the best decisions at every stage.
Final Thoughts
Insurance is not about making quick money — it’s about securing your financial stability and protecting your loved ones. Keep these 10 things to know before buying insurance in mind, and you’ll be able to choose the right policy with confidence.