Prepare For The Expected and Unexpected With Insurance That Secures A Better Future
by Carolyn Lee Jun 3, 2019
Life is filled with beautiful moments. There are moments of good fortune and moments when things tend to go in the opposite direction of what we expected. We may not be able to always prepare for the unexpected. However, we can put measures in place that allow us to have the financial security that we need. Insurance companies understand this very well.
Most insurance companies carry a roster of insurance policies that cover expected and unexpected challenges.
Admittedly, while some of us understand why insurance is crucial, there are others who need more insight.
We connected with the team at Caribbean Insurance Brokers Limited to find out more about the importance of having insurance and what you need to know.
Why is insurance important?
CAB: Insurance is important because adequate replacement value can be made available in the event of the untimely loss of life or property. In other words, having insurance coverage is a means of securing and protecting what we deem as valuable.
When should you think about having insurance and why?
CAB: You should think about having insurance once there are assets to protect or lives to be covered for the benefit of loved ones. Unfortunately, life is uncertain, and if you are the breadwinner of your family, it is important that you think about securing the future of your loved ones.
What are the three key questions that a new client should ask their broker/agent?
CAB: Three questions are:
What is the best policy to support my current and future objectives and what are the benefits to be derived?
In what circumstances will benefits not be paid?
What are the consequences for none payment of premiums?
There has been an upsurge in individual insurance offerings, what spearheaded this? Is an individual policy still necessary if you have a policy with your employer?
CAB: The upsurge in individual insurance offerings is caused largely from strong competition within the industry and the need for companies to remain relevant in the market. The variety of product offerings may not be necessary, as there are often little differences. While it is good to have coverage through an employer, it is only a temporary provision while being employed. It is, therefore, necessary to carry more permanent/greater coverage.
How relevant is it for the client to understand how premiums are calculated? Why?
CAB: Premium calculations can become quite complex. One of the main factors that is used is the person’s age. Key focus should be given to how benefits are going to be paid.
What are three ‘red flags’ that people who are new at purchasing insurance should be mindful of when looking for an agent/company?
CAB: Three ‘red flags’ to look for are:
Indication of service delivery: this deals with the quality of the customer service from the agent/broker. So, is the agent able to answer my questions? Is the agent knowledgeable about the products being offered? Are they punctual for meetings?
Be aware of offers that are made of the lowest rate of premium. Is the agent focusing only on the premium being affordable rather than the amount of coverage or a product that best suits you?
Lack of full disclosure about what is being offered/covered in the policy is also cause for concern.
Is there onboarding and communication support available with the plan/policies offered?
CAB: Purchasing insurance requires a level of before and after-sales service. This is achieved by the agent/company maintaining written, as well as, face to face contact. We always aim to satisfy our customers. We want them to feel valued and that their needs are being met.
Share a bit of advice for people who may be thinking of downgrading or cancelling a policy.
CAB: We understand that your financial status may change suddenly. However, we implore persons to think carefully before making such a decision. Downgrading or cancelling a policy places the insured at considerable risk of not being able to qualify for future coverage. Added to this, the need for coverage in most instances still exist. Also, they will need to think about the Jamaican context where inflation affects us. What we consider to be great value today could easily change in a matter of a few years.
Prepare for the unexpected moments in life by finding an insurance plan that works for you. Caribbean Insurance Brokers Limited is a multi-line insurance brokerage that offers the full spectrum of insurance products and services throughout Jamaica. Find out more about their offerings by connecting with one of their agents.