Guide to Buying Insurance for First Timers

Buying an insurance plan for the first time may be very confusing as there are many terms that you do not understand or unsure on a suitable plan to purchase. There are an endless variety of policies out there that can be quite overwhelming for first time insurance buyers. Therefore, here is a guide on how to buy insurance plans for first-timers.

Identify the Insurance You Need

Firstly, what is an insurance plan? An insurance plan is to have a financial safety net to fall back on in case of an unfortunate event or incident. There are various types of insurance plans available and the suitability depends on your unique situation such as being single, married, married with younger kids, married with grown up kids, age, lifestyle, or personas. The key to purchase your first insurance is to look for one that protects you or your loved ones from unexpected financial burden.

Life Insurance Protection for Death and Total & Permanent Disability

We never know what may happen due to life's uncertainty. Hence, life insurance is necessary to protect you and your loved ones from unforeseen circumstances such as death or total and permanent disability. With life insurance, you need not worry about how your loved ones will fare in terms of finance as you will leave a legacy for your loved ones should you pass on. In the event that you are unable to continue working due to total and permanent disability, the life insurance coverage can help to manage your future living expenses.

Medical Insurance Protection against Unexpected Medical Costs

It is also important to get yourself covered with a comprehensive medical plan in Malaysia. It is encouraged to go for a health check-up regularly in case you are diagnosed with a severe type of disease. Moreover, you won't be saddled with a hefty bill if you or a member of your family is hospitalised due to an accident or needs treatment for a chronic disease. You can purchase AmMetLife HCC BoostUp + HealthCare Choice here, a comprehensive family medical protection plan to get full health insurance coverage for you and your family.

Buying a Life Insurance Plan is A Long Term Commitment

Before purchasing your first insurance plan, you need to understand that insurance plans are long term and require a whole life commitment. Therefore, you should speak to our insurance agent to identify your insurance needs before purchasing it. At AmMetLife, we are committed to providing you all the necessary information in purchasing insurance to protect and prepare you for a more confident future.

Can You Omit Any Details When Applying?

Always provide honest and accurate information about yourself, especially about your medical history. This way, it will be easier for your insurance agent to continue the process of processing your insurance policy.

Get to Know the Terms Used In Insurance

When you are buying insurance for the first time, you will need to understand some of the insurance terms used. Here is a list of some common but important insurance terms that you need to know before purchasing an insurance plan for you and your loved ones.

1. Sum Assured

This is a fixed amount outlined in your policy that will be paid out to your beneficiary in the event of a policyholder’s demise.

2. Beneficiary

This is the person who would receive any insurance benefits if the policyholder is no longer around while covered by the plan.

3. Premium

This is the amount you have to pay either monthly, quarterly, half yearly or annually to keep your insurance policy.

4. Deductible

Deductible is only applicable for selected plans. Deductible is the amount you must pay upfront before the insurance company begins to pay for any covered expenses. Once you meet the deductible amount, only then your insurance company will step in and cover the rest of your bill.

5. Coverage Term

The period of when you are covered by your insurance policy.

6. Lump Sum

This is a sum of money that is paid in the event of a claim, subjected to terms and conditions.

7. Maturity Benefit

An amount to be paid to the policyholder when the policy has matured depending on the maturity period.

8. Policy

This is the legal document that includes all the details of your insurance coverage as well as the terms and conditions.

9. Rider

Riders are optional add-ons that you can purchase together with your basic insurance to upgrade your coverage.

About AmMetLife

AmMetLife is a leading insurance provider in Malaysia, offering a comprehensive range of insurance plans for you and your loved ones. Life is a journey that requires perseverance and patience. Sometimes, you may encounter problems and hardships that are not within your control. AmMetLife Insurance is here to help you overcome unforeseen circumstances with financial support and stability. We are fully committed to protect and prepare our customers for a more confident future by delivering:

a. Excellence in customer experience – simple, empathetic and prompt

b. Holistic, innovative and purposeful solutions

c. Top class distribution – professional, reliable and trusted