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Lessons I learned from my insurance journey

Felicia Tan
Felicia Tan • 3 min read
Lessons I learned from my insurance journey
These experiences taught me that insurance isn’t just about chasing high yields or welcome bonuses. It’s about understanding what you really need and seeking trusted guidance. Photo: Pexels
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I bought my first insurance policies in 2010, right after graduating. With low interest rates and zero investing knowledge, I chased high-yield plans, thinking they’d make my money work harder.

Instead of asking family or friends for recommendations, I called an insurance company in Singapore to request an agent. That turned out to be a huge mistake. I ended up with an agent I will call Agent K (he has since left the company), who wasn’t even the agent assigned to me. It was simply a lucky cold-call mix-up.

Several things about Agent K’s approach were questionable. I replaced the hospitalisation plan my father had held with Income since my birth, with what I was told was “just a rider” that would not affect my existing coverage. I only learned about the cancellation after the purchase went through. By then, it was too late to reinstate the original plan.

I also bought 25-year endowment plans. Looking back, other agents told me the durations made little sense.

After Agent K left, I met Agent J. Through him, I purchased policies that, in hindsight, were unnecessary for someone without dependents. My death benefit was over 80 times my annual income at the time, far above the recommended 10–15 times, according to MoneyOwl. At the time, I was living with my parents and didn’t need such a vast sum.

When The Woke Salaryman published a post about being over-insured and overpaying for insurance, I felt seen as the author’s journey mirrored mine.

See also: Is there a place for insurance in your portfolio?

Even after working at The Edge Singapore, where I developed some financial literacy, I ended up repurchasing ILPs, drawn in by welcome bonuses. Still, I overlooked the fees paid to the agent and company.

Hindsight is everything. My biggest regret was not seeking trusted recommendations, which cost me the long-term hospitalisation plan. The 25-year endowment plan may have been poor planning, but it functioned as forced savings. I wouldn’t have invested the money back then either way.

I also wish I had made better use of the two-week cancellation period, although it was too late for the hospitalisation plan.

See also: A former insurance agent’s perspective

Most importantly, I wish I had known there were ways to file a complaint or grievance. Only much later did I realise that the Monetary Authority of Singapore holds agents accountable for misconduct.

Looking back, these experiences taught me that insurance isn’t just about chasing high yields or welcome bonuses. It’s about understanding what you really need and seeking trusted guidance.

While I cannot undo the mistakes I made, I hope sharing this will help others approach insurance with greater clarity, confidence, and caution, so they don’t learn the hard way as I did.

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