Today, my blog post is about the importance of meeting your financial adviser on an annual basis for a policy review.
In Singapore, most people would have gotten one or two policies. It could be a hospitalisation plan, an endowment plan from insurance companies/banks/post office, personal accident plan etc.
However, more often than not, the policies are stored somewhere. Either in a room, or together with a stack of unread letters or might have been thrown away accidentally.
Are your policies kept in a proper file with a policy summary done up?
Or are they in a big mess? Still in its envelopes?
Many people have a misconception about having a policy review done up and I do not blame them for thinking this way.
Whenever I request for a chance to meet up for a policy review, it is normal to have the thought that ‘She just wants to sell me something.’ Most common replies I have received is ‘I am not interested or I have bought a lot of policies already.’
Even before I was a financial adviser, I had the same view as well. Always linking policy review to sales. It was also because no one told me the importance of a policy review. To be honest, I have rejected financial advisers who approached me because at that point of time I was paying a pretty huge sum of money on a monthly basis for a endowment plan which I felt was a burden to me.
Let’s get to the main gist of the post today.
5 Reasons Why a Policy Review is Important
(Note: You do not have to wait for your adviser to contact you for a review. You can ask them for a review as well. :))
1) To ensure that the policies are still inforced.
Along the way, we might have received letters from Insurance companies which we might ignore. It could be letters on unsuccessful giro deductions due to insufficients funds etc. Payment via credit card might be unsuccessful due to insufficient funds or due to expiry date on the card, so it is always important to meet up to ensure policy is still active.
2) To update any change of address/contact number.
As I was reviewing some of my clients’ policies, I realise that some have shifted house but they did not inform their agent of the change. Hence, the letters were still mailed to their previous house.
3) To refresh your memory on what you are insured
Insurance is not something that is always at the back of your mind. Along the way you might forget what policies you have bought or what you are insured. I have clients who contact me frequently to check if they are able to claim for certain things and I am very thankful that to them, I am not only a financial adviser but a friend as well. Sometimes, while using Facebook, I will see friends who post about them getting injured etc and I will remind them that if they have a personal accident plan, they can actually file for claims.
4) To ensure the agent is still in the industry and that you can still find him/her when you need help
Insurance industry has a high turnover rate and residents have told me that their policies have been passed on to several agents already. Therefore, it is always important to know that your agent is still in the industry so that someone is monitoring your policies for you and that if emergency happen, you have someone you trust that can be there for you to guide you on the procedures.
5) To ensure that any shortfall which were not previously done up are being done.
I always tell my friends and clients who do not have much income that Financial planning is a lifelong journey. They might not have a lot of budget to do up a whole life plan now but they can do up a term plan to protect themselves. Having some form of protection is better than having none at all.
Hope this post is helpful. 🙂
Feel free to contact me at 81029976 for a complimentary policy review or if there is anything you feel it will be good for me to share on my blog.
Have a great week everyone! ❤