Showing posts with label lapsed. Show all posts
Showing posts with label lapsed. Show all posts

The Most Feared Situation In Insurance Industry

fearful situation in insurance
Last week I had to go through an uncomfortable and somewhat fearful situation in my line as an IFA.

In my course of work in the insurance industry, medical plans have been very important to me as I actively promoted them to my friends and clients alike, more so since I now belong to the middle age class.

A close contractor friend of mine delivered a shocking news to me 2 weeks back to say that he has contracted cancer. Though still in an unbelievable state that the father of three teenage kids who was very active in badminton could also be hit by the disease, I was certain that at least he had some insurance policies, sold to him when I was with my previous insurer as a tied agent.

However, a final check with the insurer last week, revealed the greatest nightmare anyone in his position can have...all his policies were LAPSED in 2007! When I checked with my friend, he did admit that in his busy schedule, he might have forgotten to pay "a few" of his policies. He was also someone who wanted to monitor his finance closely, as such, never liked the idea of GIRO (auto deduction from his bank account).

Last Friday, I had to break the news to his wife as to why with the potential high costs of medical bills, there will be no cheque payment for her husband's policies. To me, it was really a situation I do not wish to be in again.

So my encouragement to all who is reading this post, do monitor your policies closely and not let your loved ones pay for your busy schedule. Insurance may be the last thing on your mind when you are successful, but it's something which my ex-boss used to say : "Insurance is a piece of paper where your spouse will never question why you are paying so much for."