Insurance Planning Guide: Master the 3 Principles of "Right, Enough, Good" — Even Beginners Can Buy the Right Insurance

On an ordinary afternoon, I got a call from a family member who was full of questions about their previous insurance plan. The proposal they pulled out made me realize how dangerous it can be to blindly trust insurance agents (of course, there are still plenty of honest, hardworking agents out there).

That phone call not only got me thinking about the importance of insurance planning but also made me aware of how shady sales tactics in the market affect everyday people. In this article, I’ll share how to choose the right insurance and how to dodge those sales traps you might regret falling into.

Buy the “Right” Insurance: Address Your Real Concerns

Choosing the right type of insurance is key. Life insurance, health insurance, and critical illness insurance each have their strengths. Understanding the features and risks each type covers helps us find the right remedy. For example, if your biggest worry is the financial burden on your family, life insurance is a solid choice. If you’re more concerned about hefty medical bills, then critical illness insurance or “actual expense reimbursement” health insurance (實支實付, a popular plan type in Taiwan that reimburses based on actual medical costs) should be on your radar.

Buy “Enough” Coverage: Sufficiently Cover Your Risks

Making sure your coverage amount is adequate is a crucial step. Your coverage should be based on your financial situation and potential risks — not just picked at random. A good insurance plan should provide enough financial support for you or your family when the unexpected happens, without needing to dip into other funds. When buying insurance, try to factor in your income, expenses, loans, education responsibilities, and more.

Pay “Good” Premiums: Best Protection Within Your Budget

Choosing reasonable premiums is equally important. Before making a decision, carefully evaluate your financial situation to ensure the plan you choose offers the necessary protection without impacting your quality of life. Remember, the purpose of insurance is to reduce risk — not to become a source of financial stress.

If someone tells you a product can help you save money AND provide full coverage, you should be very curious about that claim.

Choose the Right Insurance Agent: The Power of Information

When selecting insurance, finding a good insurance agent is also critical. A good agent will provide objective advice based on your needs, rather than just selling for the sake of selling. In this age of information overload, we should leverage available resources to make smart decisions. Don’t rely entirely on what an agent says — do your own research, ask plenty of questions, and maintain a healthy dose of skepticism.

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金融科技新創 CEO | 獨立財務顧問

Insurance is indeed a powerful tool that can help us when we need it most. However, choosing the right insurance takes time, patience, and a deep understanding of the market. I hope this article helps you learn how to spot and avoid shady insurance sales tactics, and find the plan that truly fits your needs. Remember, only when insurance meets the principles of “Right,” “Enough,” and “Good” can it truly serve its purpose.

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