One of the things to take into account in personal and family financial planning is to achieve financial goals for the future, while simultaneously still attending to the needs at hand, both current needs and long-term needs. Not only do we take into account how many assets that can be diversified according to the objectives, but we also need to be mindful of the risks that may be faced.
A financial plan that gives you peace of mind includes owning an insurance policy. Why? Because the sum insured/limit of indemnity of an insurance can be used to reduce or cover the financial impacts of unexpected risks in the future. One of the examples is a life insurance product. If you own a life insurance policy, the heirs or family may receive compensation benefits from the insurer in the form of Sum Insured in the event of death. In this regards, life insurance is divided into two types:
- Traditional Life Insurance is whole life insurance that doesn’t serve as an investment. It is usually used to provide life and/or health protection benefits with varying coverage period.
- Unit-Linked Insurance Plan is an life insurance product that combines insurance and investment benefits with focus on protection.
So, what should we consider before buying an insurance policy? Below are 10 things to consider before signing up for an insurance product:
- Assessing the risks you may face, such as risk of illness, death, disability, loss of permanent income, etc.
- Create a budget for insurance premiums.
- Contact a BCA partner officer known as Bancassurance Life Consultant (BLC AIA) or Financial Advisor (FA BCA Life) at the branch.
- Obtain and understand the prospectus provided by BLC AIA/FA BCA Life.
- Carefully study the illustration provided by BLC AIA / FA BCA Life and fully and properly disclose your medical record.
- Determine the premiums to fit your budget.
- Choose a product that suits your needs and future plans.
- Make insurance premium payments
- Receive, read, and store the Policy properly.
- Make a copy of each insurance document and store them properly.
If you agree with the products recommended by BLC AIA / FA BCA Life, you will be asked to fill out the SPAJ (Life Insurance Application Letter) and complete all the necessary documents, including a power of attorney document that permits to debit an account electronically via BCA mobile. You will then proceed to first premium payment via BCA virtual account. Regarding medical history information and also certain Sum Insured limits, you may be asked to undergo a medical checkup.
The next phase is the underwriting process. Decisions can either be approved/postponed/ granted with certain exceptions or fees/denied. If the application is approved, the insurance company will issue an insurance policy. You pay the second premium and so on through debit payments taken from your BCA account or credit card. You have the opportunity to review the insurance policy and if it doesn’t meet your needs, you can cancel the policy within 14 days by paying only the administration fee, no additional fees. Please note, upon the occurrence of an insured event in accordance with the provisions of the Policy, the Policyholder/heirs can submit a claim to the Insurer according to the applicable procedures.
BCA collaborates with insurance companies AIA and BCA Life in the Bancassurance collaboration, which is a collaborative activity between the Bank and insurance companies in marketing insurance products through the Bank. BCA employees at the branches are only in charge of providing referrals to a Bancassurance Life Consultant (BLC AIA) or Financial Advisor (FA BCA Life) who will further explore your needs, provide product solutions, and explain to you in full regarding the product including features, benefits, costs and risks, after sales services, and claim process.
By considering and agreeing to the steps mentioned above, not only will it allow you more freedom to choose the Policy that suits you and your family, but it can also protect your assets so that you can achieve your financial goals for the family and the next generation to come. For further information related to insurance, you can consult with Bancassurance Life Consultant (BLC AIA) or Financial Advisor (FA BCA Life) at BCA branch.