I recently met my best friend to mengopi and catch up because we hadn’t seen each other in a while. She also told me she had some exciting news for me – but instead of telling me we could finally take that trip to Bali we’ve been planning, she handed me her new business card, and said, “I sell insurance now!” 

I thought to myself, Awkward! On the one hand, I didn’t want to feel obligated to sign up for an insurance plan from her. On the other, I thought that as my best friend I should give her a chance and see whether there were any attractive insurance products out there.

I have to admit, I didn’t make it easy for her, though, because I knew that no matter who you buy insurance from, there are some questions you must ask:

• • What conditions/circumstances are covered or not covered by this policy? Be very clear about deductibles, exclusions, limits and anything else which is not covered. Get the insurance agent or broker to explain things to you like you’re an 8-year old. Seriously. 
  • Is the renewal for this policy automatic? Are there cancellation charges if I surrender my policy?
  • What happens if my circumstances change and I have difficulty paying? Like if I lose my job?
  • What other factors might cause my policy to end or be terminated?

Other things to be mindful of, and this is where things can get tricky if buying from a friend:

• Don’t purchase more coverage than you need. 
• Don’t purchase whole products that you may not need.
• Don’t rely on everything your agent or broker tells you.

Don’t forget, even though she’s your friend, for many insurance salespeople, the best type of insurance policy is the one that makes them the most money! So, ask all the right questions and don’t be afraid to say no.

If you need help understanding more about insurance, read our guides on life insurance and medical insurance. You can also refer to our guide on what to look out for when buying insurance, so that the next time a friend tries to sell you insurance, you’ll know exactly how to react!